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China

China to Resume WTO Talks with EU Amid Growing Market Access Push

Strategic Insights

— 1 min read

China's top trade negotiator, Long Yongtu, is set to resume talks with the European Union in Brussels later this month, addressing concerns that China may be slowing its accession to the World Trade Organisation (WTO). Beijing's decision to send a top official to Brussels comes as the US has reached a deal with China, promising unprecedented market access. However, analysts warn that China may still face demands from the EU to provide greater market access and tariff reductions, including foreign insurance companies' controlling stakes in joint ventures and equity stakes in mobile telecommunications.

Key Takeaways:

  • China's top trade negotiator, Long Yongtu, will resume talks with the EU in Brussels later this month to discuss Beijing's accession to the WTO.
  • The talks aim to address concerns that China may be slowing its accession to the global trading club.
  • The US has reached a deal with China, promising unprecedented market access in exchange for permanent Normal Trade Relations (NTR).
  • The EU is expected to push for greater market access and tariff reductions, including allowing foreign life insurance companies to take a controlling stake in China joint ventures.
  • Chinese import tariffs on certain European products, such as Cognac and mandarin oranges, are also due for discussion.

Statistics:

  • China's accession to the WTO may take some time due to EU demands for market access and tariff reductions.
  • The EU is expected to push for permission for foreign insurance companies to take a controlling stake in China joint ventures.
  • Chinese import tariffs on a "not very long but significant list" of items of importance to European exporters are due for discussion.
  • Cognac and mandarin oranges are believed to be two items on the list of EU concerns.

Sources:

  • Officials, who declined to be identified, in an article by Reuters.
  • An EU official, as cited by Reuters.
  • A US profile, citing President Bill Clinton's statements on China's accession to the WTO.

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