As China’s vice premier arrives in Germany to talk free trade, some in Europe are calling for protection against Chinese imports.
CCTV’s Guy Henderson reports the story.
Follow Guy Henderson on Twitter @guyhendersonde
You might expect the Buthmann family business to be in favor of lower steel prices. But right now they won’t buy the cheapest product on the market -which is imported from China.
Many European buyers aren’t prepared to pay more to support local suppliers.
The European Union may be the second largest steel producer in the world – but the industry is in trouble. Bosses have said they can’t compete with imports from China that they say are unfairly priced. And they want protection – in the form of tariffs – to try and put a stop to them.
It’s a sticking point that comes at a potentially awkward time.
Officials from both countries at the annual “China Meets Europe” economic summit – talk of keeping free trade alive, at a time when the very foundations of globalization are being shaken.
Indeed, that’s one of the arguments used by European Union officials – likely to formally recognize China as a “market economy” early next month: in other words, a free and fair trader.
Chinese executives here believe a few outstanding issues shouldn’t stand in the way.
“Economic reform is the hallmark of the China strategy – Xi Jinxing and presidents before him – so I hope China will continue in that road. But also, with these new developments, I think China should speed up economic structural reforms and globalization, because that will provide stability for the world,” Victor Chu, the chairman of First Eastern Investment Group said.
Such a move could make imposing import tariffs more difficult.