EU expresses concern over growing protectionism in China

(BEIJING) - The European Union said Wednesday it was concerned about growing protectionism and unequal treatment for European firms in China, but criticised public pressure on Beijing to revalue the yuan.

"We are worried we are seeing more and more complex procedures," Serge Abou, the EU ambassador to China, told reporters.

Before exporting to China, most European firms must be awarded a China compulsory certificate -- a safety licence requirement -- that involves "long delays, higher costs (and) more and more complicated procedures," he said.

"If you are a small company you are discouraged by all this and you prefer to skip the Chinese market, and that means... protectionism," he said, calling for Beijing "to simplify, or even suppress the procedures."

China's Western trading partners accuse it of making it difficult for foreign companies to operate in the country. Beijing, though, has been vocal in its opposition to protectionism and denies it puts up investment barriers.

Abou said the European Union -- the world's largest market for Chinese exports -- treated domestic and foreign firms "on an equal footing."

"A Chinese company won a procurement to build a highway in a European country (Poland), I wish European companies could win procurements to build highways in Chinese provinces", he said.

But at a time when US senators have introduced legislation that would impose penalties on China if it failed to revalue its currency, Abou said negotiations relating to the yuan would best be done "behind closed doors."

"There is no interest in using a megaphone and pressurising, I don't think pressures are the best way to solve very complex issues," he said.

"We should discuss this seriously between partners, in a non-confrontational way. This is a matter of international cooperation."

Abou also announced that Jose Manuel Barroso, President of the European Commission, would visit Beijing on April 29 for talks with Chinese Prime Minister Wen Jiabao.