Surplus fuels EU-China war of words
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China said it could do little to curb its fast-growing trade surplus with the European Union as the two sides traded accusations after ¡°frank¡± talks in Brussels on Tuesday.
Peter Mandelson, the EU trade commissioner, and Bo Xilai, the Chinese commerce minister, held an annual meeting in Brussels as China¡¯s trade surplus hit record levels.
The EU¡¯s trade deficit with China is expected to balloon to €170bn ($227bn, £115bn) by the end of the year on Brussels¡¯ figures, up from €128bn last year. While Mr Mandelson said that was unsustainable, Mr Bo characterised it as ¡°complementary and balanced¡±.
He said China was processing goods that previously had been exported to the EU directly from other Asian countries, since the latter had offshored final production to the lower-cost country. The rest of the rise came from Europe having abandoned most low-skilled manufacturing.
He did pledge, however, to try to boost imports, citing recent deals to buy Airbus aircraft and nuclear power technology.
