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NEWS ROUND-UP: INTERNATIONAL TRADEISSUE 30 | JUNE 6, 2013China, Germany Vow ToNegotiate Away Trade DisputesAccording to joint statements following a meetingbetween Chinese Premier Li Keqiang and GermanChancellor Angela Merkel in Berlin on May 26,both countries intend to avoid the imposition ofEuropean Union (EU) duties in trade disputes oversolar and wireless communications equipment,and to resolve all trade conflicts by negotiation.Earlier this month, it was disclosed that the EuropeanCommission (EC) is considering opening,on its own initiative, anti-dumping duty (AD)and anti-subsidy countervailing duty (CVD) investigationsinto imports into the EU from Chinaof mobile telecommunications equipment, whichtotals around EUR1bn (USD1.29bn) per year.The EC had not received complaints from the industryconcerned before opening its "ex officio"investigations, but believed it has prima facie evidenceof subsidization by China and of mobile telecommunicationsequipment being sold in the EUat prices lower than market value.Earlier this year, the EC had also confirmed that it isreadying substantial ADs and, subsequently, CVDsagainst Chinese exporters of solar panels and solarcells into the EU. In 2011, China exported solarpanels and their key components worth aroundEUR21bn to the EU.Warnings of the serious consequences of both actionshave already been given by China's Ministryof Commerce (MOFCOM), which, with regardto the EC's unilateral action against Chinese mobiletelecommunications exporters, said that "thetrade restriction measures unilaterally taken bythe EU will undoubtedly do harm to industrialinterests on both sides," especially as China believesthat most EU member countries disagreewith launching an investigation.MOFCOM has stressed recently that trade disputesshould always be settled through dialogueand consultation, and that countries should exercisecaution and restraint before using trade remedymeasures. The Ministry sees itself as fighting atendency, led by the US, and now the EU, towardsglobal trade protectionism following the financialand economic crisis, where countries are abusingthe use of trade remedy tariffs.Following the meeting with Chancellor Merkel, PremierLi reiterated China's concerns and its oppositionto the EC's "abuse of trade remedy measures"as giving "the wrong signal of trade protectionism."He continued that China hopes to resolve problemsthrough dialogue and consultation to solve problems,rather than fight a trade war that "would notonly hurt Chinese business and jobs, but also damagethe interests of European industries, business54