German Chancellor Angela Merkel on Sunday vowed to mediate in a trade conflict between the European Union and China over allegations that China is illegally subsidizing its solar industry.
During a news conference with China's prime minister, Li Keqiang in Berlin, Ms. Merkel called on China and the European Commission to do everything to reach a compromise in the dispute and prevent a trade war.
"Germany will get involved and engage in negotiations to
ensure that we don't come to a point where there are permanent levies,"
Ms. Merkel told reporters ahead of a working dinner for the Chinese and
German delegations at the German government's Meseberg residence outside
Berlin.
Mr. Li is making his first trip abroad since becoming prime
minister and is visiting Germany with a large delegation. Before the
news conference, China
signed 17 bilateral agreements with the German government and between
Chinese and German companies on issues ranging from bilateral cultural
ties and investment assistance to business contracts between major
companies.
At the top of the agenda during two days of bilateral meetings
is the threat of a trade war over Chinese solar subsidies between the
EU and China.
The EU is investigating whether to impose import tariffs on Chinese
solar products, prompted by a complaint by Solar World AG, a
solar-products manufacturer.
Mr. Li, in response to a reporter's question, warned the EU
against taking any action that could hurt Chinese industry, saying such
measures would cost jobs in China and in the EU.
"I hope that we can end this trade conflict with the EU
through appropriate efforts and dialogue," he said. "I hope that the EU
does not resort to protectionist trade measures for such a marginal
reason."