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Asia-Pacific leaders call for unity
by Staff Writers
Vladivostok, Russia (AFP) Sept 8, 2012


Juncker meets with China's vice premier amid trade dispute
Luxembourg (AFP) Sept 8, 2012 - Eurogroup chief and Luxembourg Prime Minister Jean-Claude Juncker met here Saturday with China's vice premier amid a trade dispute between the European Union and the Asian economic powerhouse.

The talks with Vice Premier Hui Liangyu "will focus primarily on bilateral relations as well as relations between the European Union and China," the Luxembourg government said in a short statement Friday, without issuing a follow-up after the meeting.

The trade dispute with China ratched up Thursday when the EU announced it had decided to probe claims that Chinese firms were selling solar panel products below cost, a dumping practice banned by the EU and the World Trade Organisation.

The EU said it made its decision after EU ProSun, a group of more than 20 European solar panel makers, provided evidence the Chinese products had "substantial averse effects on the financial situation of the Union industry."

The group suspects China of providing its solar product makers with large loans and other subsidies to allow them to sell them below cost.

China immediately hit back saying it deeply regretted the EU's decision and warned of problems that potential penalties might cause.

"The European Commission went ahead to initiate the anti-dumping investigation despite repeated calls by China to solve the trade dispute on photovoltaic products via consultations and cooperation," the Chinese commerce ministry said in the statement.

China is the world's biggest solar panel maker and the bulk of its overall $35.8 billion worth of solar product exports went to the EU last year, according to Chinese industry figures.

The country imported $7.5 billion worth of European solar equipment and raw materials in 2011, the figures show.

The solar import dispute has been rumbling along for some time.

In May, Washington imposed hefty anti-dumping duties on Chinese solar cell makers, a move Beijing blasted as "protectionist," and the latest dispute is but one of many to surface in recent years as China has increased its market share.

German Chancellor Angela Merkel raised the issue on a visit to Beijing late last month during which she sought to quell China's concerns over the eurozone crisis and urge it to continue to invest in the region.

She said that "protectionism cannot be the answer for certain difficulties, we have to try to solve existing problems by the way of talks, problems we have in the field of solar energy for instance."

"We should endeavour to do so because there is still time and we will discuss with our colleagues in the European Union that we should give it a try," she added.

Asia-Pacific leaders called Saturday for unity in tackling a raft of economic challenges, as an annual summit began amid deep divisions over worsening territorial disputes and other rows.

Summit host President Vladimir Putin opened the two-day gathering of the Asia-Pacific Economic Cooperation bloc in the Far East Russian port of Vladivostok with a call for a renewed joint commitment to open up regional trade.

"By getting together and lifting barriers, we encourage dynamic development of the entire Asia-Pacific region and the global economy in general. It is important to build bridges, not walls," Putin told his fellow leaders.

The 21 members of the grouping that accounts for nearly half of world trade meet every year to build goodwill in their effort to break down trade barriers, with the bloc's rules decided by consensus.

But this year's summit began with APEC giants China, Japan and South Korea embroiled in various territorial disputes that have fanned intense nationalist flames, and with US-Chinese relations also heating up over the South China Sea.

Japanese Prime Minister Yoshihiko Noda said he would not hold customary bilateral summit talks with Chinese President Hu Jintao nor South Korea's Lee Myung-Bak because of Japan's separate territorial disputes with their nations.

APEC members Vietnam and the Philippines have also spoken out strongly against China in the lead-up to APEC.

They have accused their more powerful neighbour of a campaign of intimidation to enforce its claims to virtually all of the South China Sea, parts of which they contest.

Speaking at a pre-summit business forum on Saturday, Chinese President Hu Jintao called for all countries to ensure the tensions did not escalate into more serious conflicts.

"To maintain peace and stability as well as the sound momentum of economic growth in the Asia-Pacific is in the interests of all countries in the region. It is our shared responsibility," Hu said.

Nevertheless, Chinese foreign ministry spokesman Qin Gang later reaffirmed his country's hardline stance against Japan over rival claims to islands in the East China Sea that are known as Senkaku in Japan and Diaoyu in China.

"(The) Japan side should face squarely the strong resolve and determination of the Chinese government and people to safeguard national sovereignty and territorial integrity," Qin told reporters in Vladivostok.

China has also been riled by US lobbying for a code of conduct for the South China Sea and insisting on freedom of navigation in the strategic waterway, which the United States has declared in its national interests.

US Secretary of State Hillary Clinton -- standing in for President Barack Obama at APEC -- said Saturday the United States was determined to increase its economic and political footprint in the region.

"After an extended period in which the United States had to focus a great deal of attention and resources on regions and conflicts elsewhere, we are now making substantially increased investments in the Asia-Pacific," she said.

"We seek to work with others to build a stable and just regional order that will benefit everyone."

APEC leaders have insisted they will still make progress in Vladivostok in opening up economies despite the tensions.

They will jointly call for greater efforts to "support growth and foster financial stability and restore confidence", according to a draft of a leaders' statement to be released at the end of the summit and obtained by AFP.

It warns of mounting risks to the region from the eurozone crisis in Europe and pledges to work to stoke domestic demand to counter falling exports.

The leaders will also approve a deal reached Thursday by their trade ministers to cut tariffs on a list of dozens of "green" products in the Asia-Pacific to boost trade in the goods and help protect the environment.

Putin's government has poured $20 billion into reviving Vladivostok, Russia's largest Pacific port, in hopes of turning it into an investment hub and promoting his nation's Pacific ambitions.

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