The Union accuses China of “coercive” trade policies towards Vilnius and of violating the rights of European companies present in its territory. In January, the Europeans will overcome the Chinese veto on setting up two special tribunals at the WTO. Relations between the two parties are increasingly difficult.
Beijing () – China and the European Union are facing each other in the World Trade Organization (WTO). The objective of Europe is the “coercive” policies of the Chinese government with regard to Lithuania and the theft of the intellectual property of European companies that operate in the Asian giant’s market.
According to the South China Morning Post, China has blocked two proceedings initiated by the Union before the WTO Court of International Arbitration. For Beijing, the EU measure is “incomprehensible” and “premature”, when the two disputes could be resolved amicably through bilateral negotiations.
However, the Chinese veto will be short-lived. Under WTO rules, it can only be used once, and the EU is set to seek a ruling on both cases in January.
The Taiwan question has led to the breakdown of relations between China and Lithuania. In November 2021, the Taiwanese government opened a mission in the Lithuanian capital, Vilnius, under the name “Taiwanese”. The move prompted an immediate response from Beijing, saying not to use the name “Taipei” is a violation of the “one China policy.” For the Chinese Communist Party, the island is a “rebel” province that must be reunified even by force if necessary. Since then the Chinese have canceled trade relations with the Lithuanians, a coercive measure denounced by the EU at the WTO.
With regard to the protection of intellectual property, the Union challenges certain decisions of Chinese courts that prevent European companies present in China from protecting their technological patents in foreign courts, including European ones. In case of non-compliance with these provisions, European high-tech groups such as Nokia, Sharp and Ericsson risk daily fines of 130,000 euros or criminal charges.
The EU is China’s main trading partner, while Beijing is the Union’s first. Relations between the two parties have become increasingly tense in recent years. Europe accuses the Chinese of unfair trade practices, repeated human rights violations, opaque management of the Covid-19 pandemic, attempts to split the European bloc and support for Russia’s invasion of Ukraine. For its part, China asks the EU to acquire greater strategic autonomy from the United States, especially in the economic field.
