As climate change increasingly affects economies worldwide, the urgency for a united, green economic transition has never been greater. However, experts – at the 7th China International Import Expo (CIIE) Hongqiao International Economic Forum sub-forum “Sustainable Trade amid Climate Change” held last week – warned that political agendas and trade tensions may be hindering this effort, creating obstacles that undermine a globally coordinated response.
Erik Solheim, Co-Chair of the Europe-Asia Centre, former Under-Secretary-General of the United Nations and Executive Director of the UN Environment Programme, has been vocal about the critical role of China and the EU in leading global climate cooperation.
Solheim emphasized that “Europe and China must work together to defend trade,” especially in light of recent political shifts in the U.S., which might increase trade tensions in days to come. Without robust trade, he argued, the shift to green development could take far longer, leaving global economies more vulnerable.
In recent years, with repeated shocks from the global pandemic, frequent geopolitical conflicts, and a resurgence of trade protectionism, the multilateral trading system has become increasingly fragile.
Unilateral trade protection measures introduced by a few major trading nations could be the final straw that breaks the WTO, warned Yi Xiaozhun, former Vice Minister of Commerce of China and former Deputy Director-General of the WTO, CEN reported on Monday.
Last month the European Union has decided to increase tariffs on Chinese-built electric vehicles to as much as 45.3% at the end of its anti-subsidy probe. Solheim believed Europe should embrace the challenge of green competition rather than resort to defensive measures like tariffs on Chinese products, such as electric vehicles and solar panels. “Europe needs confidence in its ability to compete,” Solheim said.—APP
