China, Europe And Europe Compete For Export Credit &Nbsp; Fierce Battle Is At Hand.

The confrontation between China and the United States is about to start with export credit, and the situation is getting more and more obvious.

The economic reference Daily reporter recently learned from the Ministry of Commerce's law department that the EU threatened to prosecute China's export to WTO.

China will actively prepare for "confrontation" when export credit is at hand.

Between China and Europe

"Now the three sides of the United States and Europe are all preparing for this matter. From the recent situation of intensive EU pressure on China, it is likely that there will be some action in the second half of this year (appeal WTO)."

The Ministry of Commerce told the economic reference Daily reporter that unlike the countervailing of a single product, once the export credit policy goes to the multilateral solution of WTO, it means that China's economic and trade policy is facing challenges directly. If WTO makes a ruling against China, it will bring great pressure to the relevant departments and industries in China.

On the issue of export credit, the European Union has been very high-profile and tough.

European Union Trade Commissioner Carlo Degucht (KarelDeGucht) recently threatened: "the European Commission is willing to support the EU company through judicial channels to solve problems, if formally received a reasonable claim, can be adopted, including litigation.

In the third round of the Sino US strategic and economic dialogue at the beginning of this month, export credit was first included in the discussion.

American companies complained earlier that China did not comply with the international agreement on export credit terms and won overseas contracts by offering export loans with high subsidies.

Geithner, the US Treasury Secretary, also said that China must stop providing low-cost loans to large state-owned enterprises, giving them an advantage over private enterprises, including domestic and overseas enterprises.

Recently, media reports reported that there were signs of joint export credit investigation in Europe and the United States.

In this regard, the commerce ministry told the economic reference daily, the Ministry of Commerce has also been concerned about this trend.

"However, from the present point of view, the attitude of the United States on this issue is very subtle."

dispute

The choice of benchmark interest rate is the core of controversy.

Export credit, as an international credit mode, is a preferential loan method to support and encourage the export of large scale machinery and engineering projects and strengthen international competitiveness to provide interest subsidies and credit guarantees to domestic exporters or foreign importers. It encourages domestic banks to provide low interest loans to domestic exporters or foreign importers to solve the difficulties of capital turnover of domestic exporters, or to meet the financing needs of foreign importers to pay their own exporters.

The EU believes that China's Export Credit provides lower interest rates than the market level, which constitutes an export subsidy and violates the relevant contents of the WTO agreement on subsidies and countervailing measures.

In this regard, Professor Gong Baihua of Shanghai WTO affairs consulting center told the economic reference daily that the issue of benchmark interest rate should be one of the core issues of controversy.

Special arrangements for export credit have been made in the WTO negotiations, with reference to the relevant provisions of the OECD.

According to the OECD arrangement, export credit can be used as a means of encouraging trade, but it can not be lower than the market benchmark interest rate.

Hang Guoliang, a lawyer at Jun He law firm, told the economic information daily that according to the WTO rules, whether banks provide loans is whether the government's behavior and industry have benefited from it (i.e., whether it is lower than the market benchmark interest rate), and whether there is any specificity in the loan preference, whether it is a requirement to decide whether to construct a subsidy.

ICBC (601398, stock bar) and other large domestic commercial banks have reported to the economic reference daily that at present, the major commercial banks in China are already joint-stock listed companies. They belong to the main body of market-oriented operation, and the loan interest rates they offer are entirely market-oriented.

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trick

Blame China's export credit for its urgent and indiscriminate medical treatment

"Although the European Union proposes that it will sue for its unreasonable credit subsidy policy by WTO, the process of collecting evidence is not easy. Because export credit preferences are prevalent in different countries," Tu Xin Quan, vice president of the WTO Research Institute of the foreign trade and Economic University, told the economic reference daily that the EU's accusation does not exclude that it wants to exert pressure on China through this way and win political support in China, which has political considerations behind it.

In addition, after the trade bar such as anti-dumping and exchange rate policy was used alternately, the EU's accusation against China's export credit subsidy was disorderly.

According to WTO, China's market economy status will automatically take effect in 2016, according to Tu Xinquan.

Despite its position, Europe and the US still doubt China's market economy.

Questioning the unfair preferential credit policies of Chinese enterprises is a reflection of their distrust of China's market economic system.

Liang Guoyong, a joint China World Trade Center conference official, told the economic reference Daily reporter that with the enhancement of the international competitiveness of Chinese enterprises, some European and American companies began to be at a disadvantage in competition.

This situation occurs not only in the European and American markets, but also in the third party market, not only in the communications equipment and other manufacturing industries, but also in the construction industry contracting and other service industries.

There are many factors that affect competitiveness, but some European and American companies have attributed their failure in competition to the support of the Chinese government to Chinese enterprises, especially through the export credit.

He said that the interests of these companies can be influenced by commercial lobby organizations, and can also be directly resorted to through litigation and other means.

For industrial products and agricultural products, if China's Export Credit constitutes a subsidy to a specific industry or a specific enterprise, then a country can ask China to withdraw subsidies or unilaterally offset tariffs through the dispute settlement procedure of WTO.

But so far, relevant investigations such as BusinessEurope and the European Commission have failed to provide strong evidence in this regard.

spread

Trade friction ignites financial front

Trade friction has ignited the financial front.

In fact, more than export credit, state owned

Liang Guoyong told the economic reference daily that Chinese enterprises, which are constantly improving their international competitiveness, have been the focus of trade friction after the global financial crisis.

The European Union's investigation into China's export credit is a new action beyond the means of anti-dumping, countervailing and special safeguard. It is a new front for trade friction.

Internationally speaking, export credit has become a trade dispute object as a means of subsidy, such as the dispute between Brazil and Canada about aircraft manufacturing in WTO.

Liang Guoyong believes that at present, the export credit institutions in developed countries have become increasingly difficult to compete with China in terms of credit size and terms.

As the largest official export credit provider, China has become increasingly popular.

Tu Xinquan said that we should first explain to Europe and America the rationality of our policies and dispel doubts.

Secondly, Chinese enterprises should learn to collect evidence from European and American enterprises which are not suitable for the treatment of WTO related rules, and increase our bargaining chips in trade negotiations.

Liang Guoyong believes that for China, in the face of pressure from the United States and Europe, it is still necessary to maintain certain autonomy and flexibility in the field of export credit.

Any international arrangement in this field should not be at the expense of damaging the economic interests of developing countries, including China and the recipient countries.

Liang Guoyong said: "obviously, the formulation of international rules can not be cut across the board, but should be linked to specific industries.

In the absence of international rules, WTO will undoubtedly become a major battleground for resolving the differences in the field.