As reported by New York Time’s Keith Bradsher, if China is going to help ease Europe’s financial crisis, silken strings could be attached. The trade policy in China will be discussed in detail at Golden Networking‘s China Leaders Forum 2011, October 7.
Premier Wen Jiabao on Wednesday offered to help Europe. But, in an unprecedented move for China, he linked the offer to a potentially onerous demand: that Europe renounce its main legal defense against low-priced Chinese exports.
Mr. Wen urged the European Union to classify China as a “market economy” instead of a “nonmarket economy.” In international trade legalese, the new designation would make it almost impossible for Europe to impose tariffs on Chinese goods considered unfairly cheap.
His remarks, in a speech at a conference in Dalian in northeast China, were the clearest move by China to link its continuing investments in Europe to specific changes in European trade policies. The linkage is being made as Beijing is showing a new willingness to use its vast financial resources to extend its political influence far from China’s shores. On Monday China announced $1 billion in subsidized loans to Caribbean nations.
Mr. Wen’s comments Wednesday seemed to contain more pro quo than specifics about the quid.