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Financial Times (London, England)
September 5, 2005 Monday
London Edition 1
SECTION: EUROPE; Pg. 5
LENGTH: 548 words
HEADLINE: Blair to press for closer strategic ties with Beijing EU-CHINA SUMMIT:
BYLINE: By BEN HALL
DATELINE: BEIJING
BODY:
The European Union and China are to draft a detailed roadmap setting out what Beijing needs to do to acquire market economy status, a recognition that would make it harder for Brussels to block its exports.
Tony Blair, prime minister of Britain, which holds the rotating presidency of the EU, will discuss the plan with Hu Jintao, the Chinese president, and Wen Jiabao, premier, at the EU-China summit in Beijing today.
Mr Blair will be accompanied by Jose Manuel Barroso, the European Commission president, and Peter Mandelson, the trade commissioner, for the talks.
A joint declaration on climate change will also be signed, including the provision by the EU of a prototype for an environmentally sound coal-fired power station.
The UK has been pressing for China to be given market economy status in the hope this will encourage Beijing, already a commercial superpower, to shoulder more global responsibilities.
Writing in today's Financial Times, Mr Blair says: "It is clear that developed countries need to move quickly, not only to be competitive with, but also to strengthen their dialogue with, India and China and other emerging economies."
He also urges world leaders to use a meeting of the World Trade Organisation in Hong Kong in December to set a deadline of 2010 for ending agricultural export subsidies.
British and EU diplomats are looking for deeper co-operation with China on global governance, energy, migration and nuclear non-proliferation in a more "strategic" relationship that is not so easily soured by arguments over trade.
But the continuing dispute over cheap Chinese textile imports - with southern EU member states demanding no concession on this year's quota of clothing imports - suggests that longer-term goals may fall victim to a European protectionist backlash.
EU officials say the political climate is hardly conducive to an agreement that would open Europe's doors to yet more cheap Chinese goods.
EU diplomats rue the sense that Washington has been more adept in its diplomacy even though there are more serious underlying strains in the US-China relationship over Taiwan, exchange rate policy, trade and human rights.
Recognition as a market economy has been of paramount importance to China as it is the target of most EU and US anti-dumping measures.
As long as China has non-market economy status, Brussels can compare the export price of a Chinese product with that of third countries rather than deciding whether China was selling below cost.
European business groups have been lobbying against the move, arguing that Beijing first needs to make progress in reforming its financial markets and five other areas.
The European Commission has also judged that China does not meet the criteria for a market economy and has said it should be awarded on technical grounds.
But a senior UK diplomat said: "It depends how legalistic you are. It is not an evidence-free zone but it is a question of taking an overview."
The EU granted market economy status to Russia in 2002, a move regarded as political because Russia was not a member of the World Trade Organisation.
Mr Blair will use the visit to China, and to India on Wednesday and Thursday, to show that the two countries offer a commercial opportunity rather than a threat. Tony Blair's long campaign, Page 17
LOAD-DATE: September 4, 2005
September 5, 2005 Monday
London Edition 1
SECTION: EUROPE; Pg. 5
LENGTH: 548 words
HEADLINE: Blair to press for closer strategic ties with Beijing EU-CHINA SUMMIT:
BYLINE: By BEN HALL
DATELINE: BEIJING
BODY:
The European Union and China are to draft a detailed roadmap setting out what Beijing needs to do to acquire market economy status, a recognition that would make it harder for Brussels to block its exports.
Tony Blair, prime minister of Britain, which holds the rotating presidency of the EU, will discuss the plan with Hu Jintao, the Chinese president, and Wen Jiabao, premier, at the EU-China summit in Beijing today.
Mr Blair will be accompanied by Jose Manuel Barroso, the European Commission president, and Peter Mandelson, the trade commissioner, for the talks.
A joint declaration on climate change will also be signed, including the provision by the EU of a prototype for an environmentally sound coal-fired power station.
The UK has been pressing for China to be given market economy status in the hope this will encourage Beijing, already a commercial superpower, to shoulder more global responsibilities.
Writing in today's Financial Times, Mr Blair says: "It is clear that developed countries need to move quickly, not only to be competitive with, but also to strengthen their dialogue with, India and China and other emerging economies."
He also urges world leaders to use a meeting of the World Trade Organisation in Hong Kong in December to set a deadline of 2010 for ending agricultural export subsidies.
British and EU diplomats are looking for deeper co-operation with China on global governance, energy, migration and nuclear non-proliferation in a more "strategic" relationship that is not so easily soured by arguments over trade.
But the continuing dispute over cheap Chinese textile imports - with southern EU member states demanding no concession on this year's quota of clothing imports - suggests that longer-term goals may fall victim to a European protectionist backlash.
EU officials say the political climate is hardly conducive to an agreement that would open Europe's doors to yet more cheap Chinese goods.
EU diplomats rue the sense that Washington has been more adept in its diplomacy even though there are more serious underlying strains in the US-China relationship over Taiwan, exchange rate policy, trade and human rights.
Recognition as a market economy has been of paramount importance to China as it is the target of most EU and US anti-dumping measures.
As long as China has non-market economy status, Brussels can compare the export price of a Chinese product with that of third countries rather than deciding whether China was selling below cost.
European business groups have been lobbying against the move, arguing that Beijing first needs to make progress in reforming its financial markets and five other areas.
The European Commission has also judged that China does not meet the criteria for a market economy and has said it should be awarded on technical grounds.
But a senior UK diplomat said: "It depends how legalistic you are. It is not an evidence-free zone but it is a question of taking an overview."
The EU granted market economy status to Russia in 2002, a move regarded as political because Russia was not a member of the World Trade Organisation.
Mr Blair will use the visit to China, and to India on Wednesday and Thursday, to show that the two countries offer a commercial opportunity rather than a threat. Tony Blair's long campaign, Page 17
LOAD-DATE: September 4, 2005

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