EU should think twice before taking trade defense measures against China
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As in the case of wireless modems, the investigations would disrupt normal trade. This would only benefit one Belgian company, which is the sole producer of the same product in the EU, but millions of consumers in 27 member states would pay for that.
Unfortunately the review ended nowhere. It has become a routine that each time the EU takes trade defense measures against Chinese products, the decision would be opposed by its own industries and consumers, and EU member states are divided.
Putting aside the argument over the EU's interests, there is more need for the 27-nation bloc to have a second thought about its trade defense actions against China under the current circumstances.
Hit hard by the financial crisis and a sovereign debt crisis, the EU economy is still not out of the woods. Recovery remained fragile and to a large extent export-driven as private consumption and investment lack momentum of rebound.
Trade holds the key to a global recovery, which is no less true for the EU. By sticking to its pledge to keep markets open, the EU is in fact helping itself.
As the EU's second largest trading partner, China is doing its part to keep bilateral trade on track. It sent several business delegations to Europe to promote trade and investment last year when the EU economy was at its toughest time due to the financial crisis.
Official figures released by Eurostat showed EU exports to China actually managed to grow 4.1 percent in 2009, while its trade flows with all other major trading partners had plunged. Exports to China may actually provide a positive aspect in the EU's recovery.
In the time of crisis, the EU and China should need each other more than ever. However, the EU's move is running counter to the deepening relations.
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