China, EU said to manage trade frictions

China and the EU are to properly managing their trade frictions and deepen trade cooperation, said China International Trade Representative Zhong Shan during the Fourth China-EU High-level Economic Dialogue on Oct 24.

Since 2012, the EU has more frequently and extensively used trade remedy measures. The infamous solar panel case affected more than $20 billion Chinese exports, accounting for about 7 percent of China's total exports to the EU.

In addition to traditional anti-dumping and countervailing investigations, the EU is also considering whether to start an ex officio anti-dumping and countervailing investigation against Chinese wireless telecom equipment.

"At the end of this July, China and the EU reached an agreement on the prices of China's solar panel products. It showed that China and the EU are fully capable of properly managing their trade frictions and achieve a win-win outcome," Zhong said.

He added that as two-way trade deepens, it is normal that some frictions will happen between China and the EU. "What is important is to properly manage these frictions and prevent them from affecting the overall economic relationship."

He called for cooperation to build a healthy trade environment. "Both China and the EU face a myriad of challenges in the complex world economy. The two sides should expand practical cooperation and refrain from the use of trade remedy measures in order to create a more healthy trade environment."

For possible major trade frictions, China hopes to stay in touch with the EU from an early stage, Zhong said. "We are willing to work closely with the EU to find solutions that accommodate the interests of both parties. At the same time, China is ready to work together with the EU to promote industrial exchanges and cooperation."

Now the two sides are negotiating China-EU investment agreements. Zhong responded that China appreciates the efforts the EU has made in pushing the negotiation process forward.

"We are happy to see the European Commission has got the mandate for negotiations. I hope the two sides will step up related efforts," he said.