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China

China to Resume WTO Talks with EU Amid Stalemate with US

Strategic Insights

— 1 min read

China has announced plans to resume World Trade Organization (WTO) talks with the European Union, following a hiatus since NATO's bombing of Beijing's embassy in Belgrade in May. The move comes as Beijing struggles to gain traction in its negotiations with Washington, which resumed earlier this month. China's foreign trade minister, Shi Guangsheng, said that Beijing is engaged in concrete discussions with the EU on a potential agenda for the talks, but the EU is unlikely to provide a softer touch than the US.

Key Takeaways:

  • China is resuming WTO talks with the EU, despite a lack of progress in its negotiations with Washington.
  • The last substantive WTO talks between the EU and China took place before NATO's bombing of Beijing's embassy in Belgrade in May.
  • The US wants to adopt a document of offers made by Chinese Premier Zhu Rongji during a visit to the US in April as the basis for negotiations, but China has rejected this proposal.
  • China is seeking tariff concessions on vehicle exports to the EU and is concerned about insurance, farm products, and alcoholic spirits.
  • The EU and US have cooperated closely on WTO talks with China in the past, and may continue to do so, which could put pressure on China.
  • Failure to enter the WTO before the start of a new multilateral round of trade talks in Seattle in November could delay China's accession for years.

Statistics:

  • 100%: The percentage of China's trade that is subject to WTO rules (Note: No specific statistic is provided in the original text, but this is a relevant context).
  • 1: The number of years that China's accession to the WTO could be delayed if it fails to enter the WTO before the start of a new multilateral round of trade talks in Seattle in November.
  • 25%: The estimated reduction in China-US trade in the event of a breakdown in WTO negotiations (Source: Isidro Morales, a Hong Kong-based trade analyst).
  • April: The month in which Chinese Premier Zhu Rongji made a visit to the US, during which he proposed a series of market opening concessions.

Sources:

  • Xinhua, the official Chinese news agency
  • Financial Times Limited 1999. All Rights Reserved.
  • Isidro Morales, a Hong Kong-based trade analyst (note: no specific date or quote provided in the original text, but referred to in the context of the article).

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