And the rhetoric from Mr. Mandelson continues to target China. It started with currency issues, now we’ve got the alleged subsidies. Following in the footsteps of the Bush Administration (from the FT):

Europe is to reinforce its tougher line against China by following the US in slapping tariffs on Chinese products that benefit from alleged subsidies.

In the biggest policy change to emerge from a year-long review of the EU’s trade defence instruments, Peter Mandelson, the trade commissioner, is to propose to allow the Commission to start anti-subsidy actions itself. It would no longer have to wait to receive complaints from companies, which are mostly reluctant to do so for fear of retaliation by Beijing.

I understand the fear of retaliation issue, and that could be a real concern, but somehow this smacks of protectionism, doesn’t it?

Documents seen by the Financial Times show the proposed move has strong backing from EU governments and some support from industry, as patience over the growing trade deficit with China – increasing by $20m (€13.6m, £9.7m) an hour – wears thin.

Yeah, because of course the trade deficit is only explainable by reference to illegal subidies . . . {sigh}

Noting that the U.S. Federal Trade Commission just ruled in China’s favor on the glossy paper dispute, is this really the best way to go, EU?