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China Hints at EU Trade Sanctions

Peter Cassata | December 05, 2008

After calling off a China-EU summit last week in protest of EU plans to host the Dalai Lama, Beijing hinted at possible trade sanctions against the EU on Thursday.  The Times:

Beijing raised the specter of trade sanctions against France yesterday to threaten President Sarkozy's plan to meet the Dalai Lama.  The coded warning came on the day that the Tibetan spiritual leader was fêted by the European Parliament.

[...]

To the annoyance of Beijing the support of MEPs for the Tibetan leader was unequivocal.  "It is our duty to help his holiness the 14th Dalai Lama so that his people have a good future," said Hans-Gert Pöttering, the President of the European Parliament.

[...]

In Beijing a senior official warned France against "an impact on the long-term development of ties."  In the latest escalation of pressure on Mr. Sarkozy to shun the Tibetan leader when both attend the 25th anniversary of Lech Walesa's Nobel Prize in Gdansk, a Chinese Foreign Ministry spokesman, Liu Jianchao, issued a coded warning, saying that economic and trade links with France "rested on the basis of mutual benefit."

He added that China hoped the French would "create positive conditions for developing overall China-French relations and not create an impact on long-term development of ties that would harm the interests of people from the two countries."

The Dalai Lama said that China deserves to be a superpower because of the size of its population, economy, and military, but warned that it is lacking in "moral authority."  Whether China takes the rare step of actually implementing sanctions against the EU, collectively the world's largest single market, is another matter.

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