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Beijing / AFP
EU Commission head Jean-Claude Juncker said on Wednesday that the bloc would use all possible means to protect itself from a flood of Chinese steel imports blamed for turmoil in global markets.
China, which makes more than half the world’s steel, is widely accused in Europe of dumping its production on world markets and violating trade agreements at the expense of local jobs.
“The EU will defend its steel industry. We are not defenceless, and we will use all the means at our disposal,” Juncker told reporters in Beijing. He said there was a “clear link” between China cutting steel overcapacity and the EU granting it “market economy status” — a prize eagerly sought by Beijing.
China has been pressing the EU to grant it the status — which would make it harder for the bloc to levy anti-dumping tariffs — before the year’s end, citing World Trade Organisation rules.
Juncker said that the EU had “not made up its mind” on the matter, but would do so following an “impact
assessment”.
Chinese steel exports to the EU rose 28 percent in the first quarter of this year, while prices dropped by more than 30 percent, he cited official statistics as saying.
The Commission chief spoke after an annual EU-China business summit, where he hailed a “new era of bilateral relations”, but added it “must take into account the importance of steel around the world”.
The EU, the second-biggest steel producer, has launched a dumping probe into Chinese steel. But angry manufacturers urge it to copy the US in introducing tough tariffs.
China’s ministry of commerce said Wednesday it would fight Washington’s steel tariffs through the World Trade Organisation’s dispute settlement process, the official Xinhua news agency reported.
Beijing says reducing overcapacity and cutting state-subsidies to the steel sector are top priorities in its economic reform drive. But foreign governments say they have seen little movement towards implementation.
EU hopes to keep Britain ‘close’ after Brexit vote
Beijing / AFP
European Commission head Jean-Claude Juncker said on Wednesday he hoped relations with Britain could be “as close as possible” despite the country’s vote to leave the bloc.
“I want for relations with Britain to be as close as possible — I will not negotiate with Britain in a hostile mood,” he told reporters in Beijing.
But he repeated the grouping’s stance that “there will be no negotiations at any level” before London formally triggers the Article 50 mechanism to leave.
His comments came as Theresa May prepared to become Britain’s second female prime minister, after David Cameron steps down in the wake of the seismic referendum.
Juncker — who had a famously antagonistic relationship with Cameron in the run up to his appointment as Commission chief — said he would “miss” the outgoing prime minister because of their “excellent professional relationship”.
He added that he “looked forward to meeting” May.
European leaders have asked London to quickly formalise its divorce from the EU but May has indicated she will not be rushed.
European Union President Donald Tusk —- sitting beside Juncker at a press conference following an EU-China business forum — added that “after this so called divorce procedure the UK will remain our closest partner”.
Juncker sought to calm fears over Brexit, telling the forum that “Europe with 27 (member countries) is the second economic zone in the world and will remain so. She will remain the world’s leading market”.
Analysts say China has not welcomed the turmoil in world markets caused by the Brexit vote, but could benefit strategically in the long term from a more divided Europe.