Navigation
Suscribe
Menu Search Facebook Twitter
Search Close
Menu ALL SECTIONS
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Digital
Prensa
Radio
TV
X
Newsletter
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers
Business

EU Envoy Calls for Fairer Economic Relationship with China

Beijing is trying to shrink bloated companies in industries including steel and coal in which supply exceeds demand

European Union's Ambassador to China Hans Dietmar Schweisgut, second left, walks to an event to mark Europe Day in Beijing, China, Monday, May 9, 2016, photo: AP/Ng Han Guan
1 year ago

The European Union’s ambassador to China said Monday the bloc wants a more level playing field in its trade relations with China, insisting that Beijing was not doing enough to address overcapacity in its steel industry that has hit European manufacturers hard.

Hans Dietmar Schweisgut called on Beijing to urgently address overcapacity and the “market distortions” it is causing globally.

“According to many estimates, the overcapacity in the steel sector in China alone is more than double the total productive capacity in the second largest steel producer, which is the European Union,” said Schweisgut.

“We very much need to urgently address the short-term market distortion issues which we currently see.”

Beijing is trying to shrink bloated companies in industries including steel and coal in which supply exceeds demand, leading to price-cutting wars and heavy losses.

Hans Dietmar Schweisgut, EU ambassador to China, toasts after delivering the opening speech at an event to mark Europe Day in Beijing, China, Monday, May 9, 2016. (AP Photo/Ng Han Guan)

Hans Dietmar Schweisgut, EU ambassador to China, toasts after delivering the opening speech at an event to mark Europe Day in Beijing, China, Monday, May 9, 2016. Photo: AP/Ng Han Guan

The EU and the United States complain that China is trying to clear away the backlog of steel by exporting at unfairly low prices. Earlier this year, thousands of European steelworkers protested in Brussels against the import of cheap Chinese steel. Tata Steel cited low-cost Chinese competition when it announced plans in April to sell money-losing operations in Britain that employ 20,000 people.

Schweisgut also said that while European companies were willing in decades past to put up with restrictions on doing business in China, especially when they had other advantages like cheap labor, now the EU wants a relationship that is much more based on “fair exchange.”

He said European businesses are growing more urgent with “questions like ‘why is it possible that last year a Chinese institution bought a European bank but it’s not possible for a European bank to buy a Chinese one.'”

Chinese regulations forbid or limit foreign investment in certain sectors, including banking and automobiles.

Comments Whatsapp Twitter Facebook Share
More From The News
Mexico

7.1 Magnitude Quake Kills 119 as Buildin ...

1 min ago
Mexico

TUSGS Says Mexico Quake Magnitude 7.1

5 hours ago
Business

Kohl's to Start Accepting Amazon Returns ...

6 hours ago
World

Trump Lawyer: Senate Panel Delays Privat ...

6 hours ago
Most Popular

TUSGS Says Mexico Quake Magnitude 7.1

By The Associated Press
Mexico

Mancera Pays Tribute to 85 Earthquake in ...

By Notimex
Mexico

Hurricane Maria Smashes Dominica, Now Me ...

By The Associated Press
World

Mexican Independence Day: A Quick Guide

By Peter Appleby
Mexico

Oaxaca Businesses Shut Down to Protest T ...

By Reuters
Mexico