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Merkel, Li urge dialogue to defuse EU-China trade spats
by Staff Writers
Berlin (AFP) May 26, 2013


German Chancellor Angela Merkel and China's Premier Li Keqiang urged Sunday for talks to avert brewing trade spats between Beijing and the EU, warning that protectionist measures would hurt both sides.

Merkel said Germany would use the next six months to press for "as many as possible" discussions to be held on resolving the disputes over Chinese telecom products and solar panels to avoid it ending in mutual tariffs.

"I will, as head of the government, advocate that we, at the European level, as quickly as possible have intensive discussions with the Chinese side on the questions at issue," Merkel told a joint press conference with Li.

Li, who arrived Saturday in Germany, by far China's biggest European trading partner, said China "resolutely" rejected the European Union's plans to probe the country's telecom products and impose taxes on solar panels.

He said the move would not only threaten jobs in China and hit the branches concerned, but also affect the interests of European companies, consumers and industry.

"To this effect, this measure is a measure that doesn't serve one's own interests and also damages others," Li told reporters through an interpreter.

"Therefore we hope that through joint efforts and through dialogue and consultations, the trade disputes between China and the EU can be acceptably settled," he added.

And he said that the EU decisions sent the "wrong signal" that trade protectionism had made a "comeback".

Last week, the European Commission said it would open an anti-dumping and anti-subsidy investigation into mobile telecommunications network equipment and components from China if bilateral negotiations fail.

Earlier this month, the European Commission proposed to member states that they approve by June 5 a provisional 47-percent on average levy on imported Chinese solar panels.

The EU argues that such Chinese products are being dumped on its market, hurting European firms.

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