News / Economy

Britain's Cameron Visits Beijing, Pushes EU-China Free Trade Deal

British Prime Minister David Cameron, left, chats with Chinese Premier Li Keqiang as they arrive for a welcome ceremony at the Great Hall of the People in Beijing, China, Monday, Dec. 2, 2013.
British Prime Minister David Cameron, left, chats with Chinese Premier Li Keqiang as they arrive for a welcome ceremony at the Great Hall of the People in Beijing, China, Monday, Dec. 2, 2013.
Reuters
British Prime Minister David Cameron flew into China saying he wanted to lay the groundwork for a multi-billion-dollar free trade deal between Beijing and the European Union, despite growing unease about his own country's membership in the bloc.
 
On a three-day visit with a delegation of around 100 business people, the largest-ever British mission of its kind, Cameron said he wanted his country to play an important role in China's expansion as the world's second biggest economy is talking about opening up its markets.
 
“China's transformation is one of the defining facts of our lifetime,” Cameron wrote in Caixin, a Chinese weekly news magazine, on the eve of the visit.
 
“There is a genuine choice for every country over how to respond. They can choose to see China's rise as a threat or an opportunity. Britain's answer is clear. We want to see China succeed,” continued Cameron.
 
Cameron's push for an E.U.-China trade deal will irritate the European Commission, which is understood to be strongly opposed to such a move on the grounds that it risks flooding the bloc with cheap Chinese imports and comes as the bloc is embroiled in a dispute with Beijing over solar panel exports.
 
It is also likely to be seized upon by political opponents, as he has put a question mark over Britain's continued membership of the 28-nation E.U. by promising Britons an in/out referendum on leaving the bloc if re-elected in 2015.
 
“I now want to set a new long-term goal of an ambitious and comprehensive E.U.-China Free Trade Agreement,” Cameron wrote.
 
“And as I have on the E.U.-U.S. deal, so I will put my full political weight behind such a deal which could be worth tens of billions of dollars every year,” promised Cameron.
 
Cameron is expected to raise the subject in a meeting with Chinese Premier Li Keqiang on Monday. His office said he was the first European leader to champion such a deal in this way.
 
He had already discussed the idea of an E.U.-China trade deal with other E.U. member states, it added. Such a deal would address services liberalization and better intellectual property rights protection.
 
Cameron told reporters on the plane to Beijing he was aware the idea was not universally popular among E.U. member states, but said it could be a chance to tackle Beijing on intellectual property rights and trading standards.
 
“It'll be the normal thing in the EU which will be a discussion where there will be some skeptics. There will be some enthusiasts and I think the enthusiasts have the wind in our sails,” said Cameron.
 
Human Rights    
 
British finance minister George Osborne opened the door to further Chinese investment in Britain during a visit to Beijing last month, during which he announced less stringent rules for Chinese banks operating in London in a push to make the British capital the main offshore hub for trading in China's currency and bonds.
 
He also paved the way for Chinese investors to take majority stakes in future British nuclear plants.
 
Campaigners have often accused Cameron of putting trade before human rights. On this trip, activists want him to raise what they say are rights abuses in Tibet.
 
A senior source in his office said before the trip that Britain had turned the page on a rift with China over Tibet, adding that Cameron had no plans to once again meet the Dalai Lama, Tibet's spiritual leader-in-exile, after their meeting last year angered Beijing.
 
Asked on the plane whether he would be raising Tibet, Cameron was non-committal, but said nothing was “off limits” in Britain's relationship with China.
 
As permanent members of the U.N. Security Council, Cameron said the two countries would also discuss Iran and North Korea.
 
Cameron visited a training academy for Jaguar Land Rover sales staff in Beijing on Monday to mark its official opening as the carmaker unveiled a deal worth 4.5 billion pounds to provide 100,000 cars to the National Sales Company in China.
 
England's Premier League is also expected to announce an agreement with the Chinese Super League to develop football in China and boost the Premier League's profile.
 
Xavier Rolet, the chief executive of the London Stock Exchange, is travelling with Cameron.
 
The business delegation also includes Andrew Witty, the chief executive of GlaxoSmithKline. The company was drawn into a bribery case in China earlier this year which resulted in police detaining four Chinese GSK executives.
 
Peter Humphrey, a British man running a risk advisory group, was also detained and is still being held.

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