Saturday

7th Dec 2019

Focus

US and EU face 'common' China challenge, says US official

  • Beijing. China 'has moved away from the liberalisation path that had been a strong theme in earlier years,' US official Malpass said (Photo: Jens Schott Knudsen)

China's economic and trade policies are a "common challenge" for the EU and the US, a top US official said in Brussels.

David Malpass, the US Treasury undersecretary for international affairs, said that China "has moved away from the liberalisation path that had been a strong theme in earlier years".


Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 20 years of archives. 30-day free trial.

... or join as a group

He noted that China "is putting emphasis on state-owned enterprises, on the involvement of the Communist party into the business sectors" and that "heavy subsidies distort the allocation of capital."

He added that Chinese authorities were "very aggressive" in the use of credit agencies as well as regarding intellectual property. "They need to stop their practice of forcing business that involves the transfer of the property to China, or the lack of protection for intellectual property as its used within companies," he added.

Malpass, who spoke to a group of journalists between meetings with EU officials, noted that accelerating world growth gave the EU and the US "an opportunity to work together on challenges."

"China is certainly one which presents a common challenge for the US and Europe in terms of its investment practices, its trade practices and its own moving away from market liberalisation," he said.

He insisted that the US was looking "free, fair and reciprocal" trade relationships but that "with China, one of the problems is there is not reciprocity."

The US official also noted the US and "other countries have a common interest in more transparency from China and that extends into steel."

Malpass made his comments three weeks after Donald Trump's administration published its National Security Strategy in which China was described, with Russia, as a "revisionist" power threatening US supremacy.

In the strategy's chapter on Europe, the Trump administration said that it would work with the EU "to contest China's unfair trade and economic practices and restrict its acquisition of sensitive technologies."

Last year, the EU launched plans to screen Chinese investment in strategic sectors and introduced new rules on dumping that angered Beijing.

Malpass's comments also come on the heels of a visit to China by French president Emmanuel Macron, where he stressed the need for more reciprocity in EU-China economic and trade relationships.

Malpass, who was one of Trump's economic advisers during his presidential campaign, however stressed "the limits of multilateralism."

He said that "in some areas, we have gone too far" and that "too much multilateralism impedes the growth process."

"We'd like too see more modesty in the international organisations as far as what they can accomplish versus what really comes out of the people of the various countries operating on their own for their own advancement," he said.



He added that the US wanted "less expensiveness in terms of [international organisations'] demands on taxpayers around the world."

The US official defended Trump's decision to abandon the Trans-Pacific Partnership (TPP) signed by his predecessor Barack Obama.

 He said that it would have been "wishful thinking" to expect the trade deal, which did not include China, "would have pulled China more into the world trade system."

"The world has tried to give China opportunity to be a market-based economy, but it is not moving in that direction now," he said.

Hungary-Serbia railway launched at China summit

The flagship project of China's increased presence in central and eastern Europe was launched on Tuesday, following an EU probe as a summit in Budapest raises questions on Beijing's influence.

Analysis

Macron's Chinese 'game of influence'

On his recent visit to China, the French president tried to take advantage of Beijing's 'divide and rule' EU approach and become the country's main interlocutor with Europe - while also calling for more EU coordination.

News in Brief

  1. Greece denies access to fair asylum process, report says
  2. Report: Self-regulation of social media 'not working'
  3. Turkey: Greek expulsion of Libyan envoy 'outrageous'
  4. Merkel coalition may survive, says new SPD co-leader
  5. Von der Leyen Ethiopia visit a 'political statement'
  6. Over 5,500 scientists ask EU to protect freshwater life
  7. Iran defies EU and UN on ballistic missiles
  8. Committee of the Regions: bigger budget for Green Deal

Opinion

Merkel's China challenge - distance but engagement

The German chancellor's visit to China starts Thursday. She must signal to Beijing that Europe is serious and united in its newly critical approach to China - and show Washington that there are less destructive ways to deal with differences.

Supported by

Stakeholders' Highlights

  1. Nordic Council of Ministers40 years of experience have proven its point: Sustainable financing actually works
  2. Nordic Council of MinistersNordic and Baltic ministers paving the way for 5G in the region
  3. Nordic Council of MinistersEarmarked paternity leave – an effective way to change norms
  4. Nordic Council of MinistersNordic Climate Action Weeks in December
  5. UNESDAUNESDA welcomes Nicholas Hodac as new Director General
  6. Nordic Council of MinistersBrussels welcomes Nordic culture

Latest News

  1. Russia makes big promises to Arctic peoples on expansion
  2. UK election plus EU summit in focus This WEEK
  3. Migrants paying to get detained in Libyan centres
  4. Searching for solidarity in EU asylum policy
  5. Will Michel lead on lobbying transparency at Council?
  6. Blood from stone: What did British PR firm do for Malta?
  7. EU Commission defends Eurobarometer methodology
  8. Timmermans warns on cost of inaction on climate

Stakeholders' Highlights

  1. UNESDAUNESDA appoints Nicholas Hodac as Director General
  2. UNESDASoft drinks industry co-signs Circular Plastics Alliance Declaration
  3. FEANIEngineers Europe Advisory Group: Building the engineers of the future
  4. Nordic Council of MinistersNew programme studies infectious diseases and antibiotic resistance
  5. UNESDAUNESDA reduces added sugars 11.9% between 2015-2017
  6. International Partnership for Human RightsEU-Uzbekistan Human Rights Dialogue: EU to raise key fundamental rights issues

Join EUobserver

Support quality EU news

Join us