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Nov 27, 2007
EU-China food fight
Europe's reservations over safety of Chinese goods go down badly in Beijing
By Tracy Quek, China Correspondent
LOUD AND CLEAR: A notice at the International Food Safety Forum in Beijing alerting representatives to the issue of the day. -- PHOTO: AFP
BEIJING - A HIGH-LEVEL food safety forum in Beijing got off to a contentious start yesterday, when tough comments by the European Union's top trade official incurred the ire of Chinese officials.

In his 30-minute hard-hitting speech at the opening of the two-day forum, EU Trade Commissioner Peter Mandelson raised various bugbears and dealt with sensitive issues. These ranged from the rising cases of 'defective' China-made products detected by the EU to the need for Beijing to address a 'tidal wave' of counterfeit goods coming out of the country.

Coming ahead of the 10th EU-China summit tomorrow, Mr Mandelson's pointed remarks suggest there will be more hard talk and tense negotiations ahead.

The EU, China's biggest foreign trading partner, is expected to depart from its usual 'soft approach' and adopt a tougher stance on pressing Beijing to further raise the value of the yuan, lift investment barriers to EU companies as well as take stronger action on intellectual property rights violations.

Also on the summit's agenda is a cooperative agreement expanding the China-EU partnership beyond trade. Leaders will also discuss some major cooperation projects - from multi-million-euro loans to fighting climate change and possibly a clean-energy research centre.

A string of product safety scares this year ranging from contaminated pet food to dangerous toys have shaken consumer confidence in China-made products, Mr Mandelson said at yesterday's forum, which was organised by Beijing to enhance international cooperation and develop strategies to boost product safety globally.

'Consumers and businesses will inevitably need to be reassured that China...produces safely at every stage. This is crucial not just for our sake, as consumers, but for China's long-term success, which depends on its reputation,' said the straight-talking official, who is expected to lead the EU's charge on trade at the summit.

'A reputation can only be built up steadily step by step but can be destroyed in a moment. This is what is at stake for China,' he told some 300 diplomats and officials from 42 countries, including the United States, Canada and Japan.

His comments apparently touched a raw nerve with Vice-Premier Wu Yi, who heads a high-level task force charged with raising product quality and standards.

'I am extremely dissatisfied with Mandelson's speech!' said a visibly angry Madam Wu, when reporters asked for her reaction after the morning's ceremony. She did not elaborate as she made her way out of the Diaoyutai State Guesthouse, where the forum was being held.

Earlier, Madam Wu, who spoke before Mr Mandelson, condemned parties which politicised the issue of food safety, or used it as a guise for trade protectionism.

Efforts taken by China in recent months to mend its damaged image included a campaign led by Madam Wu to tidy up its manufacturing industry. The four-month-long campaign has achieved good results, she said yesterday.

While Mr Mandelson applauded the remedial efforts of the Chinese authorities and acknowledged that product safety was not a problem restricted to China, he urged Beijing to do more on the issue.

The EU's detection system for problematic non-food products received more than 1,000 notifications last year, nearly half of which concerned China. This year, those numbers look set to rise by 50 per cent, he said.

On food products, China represented 9 per cent of notifications last year, with problems emerging on a wide range of goods, such as honey and peanuts. Such cases are also likely to rise this year, Mr Mandelson added.

Product safety is a 'zero compromise issue' for the EU, he stressed.

'Chinese officials have pointed out that less than 1 per cent of Chinese exports to Europe have alleged health risks. Europe imports half a billion euros' (S$1 billion) worth of goods from China every day so even 1 per cent is not acceptable,' he said.

Mr Mandelson's comments were 'inappropriate for today's occasion' and 'unfair', Mr Wei Chuanzhong, deputy head of China's quality watchdog told Bloomberg on the sidelines of the forum.

tracyq@sph.com.sg

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