CHINA: EU Trade Commissioner Peter Mandelson calls on China to open its economy to foreign investment and crack down on piracy in a speech at Renmin University in Beijing

Record ID: 859330

  • Title: CHINA: EU Trade Commissioner Peter Mandelson calls on China to open its economy to foreign investment and crack down on piracy in a speech at Renmin University in Beijing
  • Date: 9th June 2006
  • Summary: STUDENT ASKING QUESTION
  • Embargoed: 24th June 2006 13:00
  • Keywords:
  • Location: China
  • City:
  • Country: China
  • Topics: International Relations,European Union
  • Reuters ID: LVAV7CQQ5OGFCJFBFTQ3SO3EIZM
  • Aspect Ratio:
  • Story Text: EU Trade Commissioner Peter Mandelson has called on China to provide better access for EU investment and improve protection of intellectual property rights on Thursday(June 8).
    Mandelson said in a speech at Renmin University in Beijing that if China doesn't meet its outstanding WTO committments and obligations, it would provoke a negative protectionist response in Europe and elsewhere.
    "China is destined to enjoy a pivotal role in the world economy for decades to come. Economic leadership also brings with it responsibilities to respect and support open markets, to apply rather than circumvent the rules, and above all to ensure that the benefits of open markets are shared by all. Now, unfortunately, we still see many obstacles remaining", he said.
    He said that China should show more urgency in opening its markets and strengthening legal protection for foreign companies as well as avoiding anti-competitive trading practices and regulations.
    Mandelson cited obstacles to doing business in China, such as excessive paperwork, unjustified health barriers for farm goods, closed government procurement contracts, rules that restrict foreign investment and unequal access to bank loans.
    "Now, these practices complicated the lives of our businesses selling into China. We would like to work now with China to see these restrictions and barriers eased and removed. This will also bring benefits for you in China. China after all needs economic growth to sustain gradual, peaceful, political reform. That growth in turn depends on access to foreign markets. That access will increasingly depend on fair access in return for exports to China's growing domestic market", he said.
    Mandelson urged China to intensify its efforts in fighting widespread intellectual property piracy that cost EU countries billions of U.S. Dollars annually in lost revenues.
    "Another serious problem is intellectual property. The EU produces expensive, innovative, and branded products. To retain their value, these products depend on a robust international system to protect brands, patents, and copyright. This is an area where we need to work with China to deliver rapid progress, and developing more robust IPR protection will also help China develop their own brands and their own patents in the future ", he said.
    The United States is also pressing China to reform, especially on piracy. On Wednesday (June 8), a U.S. trade official said Washington could take China to the (World Trade Organisation) WTO over abuse of intellectual property rights.
    The European Union has taken China to the WTO over what it says are discriminatory tariffs for imports of car parts, a case it is pursuing with the United States and Canada.
    In services, Mandelson said China had yet to create real opportunities for foreign companies in the financial, telecoms and construction sectors, despite its commitments as a member of the WTO.
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