Restrictions on high-tech exports to China have been an obstacle to the development of trade relations between the Asian country and the European Union (EU). China comes calling to the entity which relax these restrictions. The request was repeated recently by vice-premiê Chinese, Li Keqiang, during his official visit to Belgium and the EU headquarters.
But what are the restrictions? What is the impact of bilateral trade? And when the EU will soften the restrictions? To answer these questions, the China International Radio reporter interviewed Chen Fengying, Director of the Research Department on the world economy, the Chinese Institute of contemporary international relations.
According to the Chinese scholar, the European Union imposes restrictions on the export of technologies that, for the block, can be transferred to military use or which relate to national security. However, what China needs is urgent in the high-tech environmental protection and reduced energy consumption.
“The European Union cares greatly about the transfer to the military use of imported technologies on behalf of civilian use. The block also restricts the export of aviation technologies, exploration of the high seas, and to computation. There are no such restrictions between members of the bloc, but the European Union takes very careful about exporting to China. In fact, however, what we need are technologies related to environmental protection and reduction of energy consumption. ”
In the view of Chen Fengying, under the current economic situation, the relaxation of restrictions on export to China favors the European bloc’s trade growth and the increase in jobs in the Mainland.
“For me, the restrictions have negative impact on the trade block. Europeans could export more without these barriers. In the past, the impact wasn’t as great, because trade between developed countries was quite active. But now the situation is complicated. Europe is facing the crisis of sovereign debt, shortly after a financial crisis. The US economy is recovering, but moderately. The markets of emerging countries, however, are growing rapidly. The relaxation of restrictions on exports to China could boost employment and pulling the European economy. ”
Second article published by vice-premiê Chinese, Li Keqiang, the Financial Times, the increase of one percentage point of European exports of high technology to China can raise at least 2.2 billion euros the volume of total exports of the Mainland to the outside world. For Chen Fengying, the European Union can loosen part of restrictions due to the current economic situation, but the relaxation would be limited.
“I think the European position may change, but the change should not be too large. First, because the block still did not recognize China as a market economy. Secondly, because Europe still sees China as a rival. Thus, the block should not open access to key technologies export. ”
Translation: Agnes Zhu
Review: Luiz Tasso Neto
