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asia pacific
US hits at European 'dogs of imperialism' By James Kynge in Beijing Published: April 10 2002 20:08 | Last Updated: April 10 2002 20:40
The US trade representative warned China on Wednesday against joining forces with the "running dogs of European imperialism" in opposing recent US tariffs on steel imports, but nevertheless failed to soften the ire of Beijing's trade mandarins. Robert Zoellick tried to win over his Chinese counterparts with arguments that only about $204m worth of Chinese steel exports - or just 0.2 per cent of total exports last year - to the US would be affected by the 30 per cent rise in US tariffs announced last month. He also noted that China ran an $80bn trade surplus with the US and that Beijing had itself been favouring domestic steelmakers with $6bn in subsidies between 1996 and 2000. In addition, he quoted an official Chinese plan to become self-sufficient in steel by 2010. But Chinese trade officials said Mr Zoellick's arguments had failed to sway them from their intention to challenge the tariffs in the World Trade Organisation, which China joined last December. It was unlikely too that his warnings over European "running dogs" had cut much ice. Chris Patten, the EU external affairs commissioner, promised during a visit to Beijing this month that the EU would work with China to find ways to oppose the US tariffs. The pledge coincided with a low point in political relations between Washington and Beijing. Officials in Beijing have said China should be exempt from the US steel tariffs, and called for compensation for domestic producers. But despite the tough talk, Chinese academics said Beijing would be reluctant to take overt retaliatory measures. China hopes to attract about $50bn in foreign direct investment this year and increase exports to the US, EU and other important markets. An overt retaliatory measure would risk being perceived by foreign direct investors and foreign governments as protectionism, and could therefore imperil investment inflows and access to export markets. But in other trade areas, China does not appear in a hurry to expose its domestic market to the chill winds of competition. Mr Zoellick said Beijing had yet to announce tariff rate quotas for a range of agricultural goods that should have been made public early this year. This means, effectively, that such goods cannot be exported to China. The US trade representative also indicated that Washington was dissatisfied with Beijing's progress in awarding new insurance licences according to "prudential standards". Since China joined the WTO, no new foreign insurers have been granted permission to enter the market. Washington was also concerned over the Chinese postal authority's apparent reluctance to cede parts of its monopoly to foreign companies such as DHL and UPS.