China pressed to compromise and restart tech tariff negotiations
European industry bodies are trying to convince China to return to the negotiating table and discuss removing tariffs on key tech products
Major European trade associations have written to Vice-Premier Ma Kai calling on China to restart talks on expanding the scope of a global pact to remove tariffs on a range of information and communications technology products.
Negotiations were suspended on November 21 after China declined to make further concessions on the number of products it wanted excluded from an expanded Information Technology Agreement (ITA), a tariff-cutting scheme established in 1996 under the World Trade Organisation (WTO).
However, Hosuk Lee-Makiyama, director of the European Centre for International Political Economy, a Brussels-based think tank, said any effort to revive ITA talks this month is not realistic.
"The negotiations are now effectively over, as China has made its choice," he told the South China Morning Post.
In a letter sent to Ma late on Friday, four European trade groups requested that China "substantially reduce" the number of information and communications technology products on its "sensitivities" list, which included items for longer tariff phase-out periods.
The Ministry of Commerce seems unable to convince domestic protectionist interests that China needs to promote a policy for its technological upgrade and economic growth
"Constructive compromises, in the spirit of balanced giving and taking, are needed to achieve a commercially significant outcome, which would bring concrete benefits to the European Union and China alike," the letter said. "Important progress has been made already, and an agreement is now within reach. We hope the remaining stumbling blocks that currently undermine the advancement of the ITA talks will be successfully addressed to achieve the ambitious, comprehensive agreement that was originally contemplated."