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China, the EU and Latin America : current issues and future cooperation
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42 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation countriescouldalsomeetpartoftheirobligationsforreducingemissionsunderthe KyotoProtocolbyreceivingcreditsforinvestinginprojectsthatreducecarbon emissionsindevelopingcountries.However developedcountriescouldalso adopta moreambitiousprogrammeoftransferringadvancedclean energy technologiestothedevelopingworld.Chinahasjoinedwithotherdeveloping countriestodemandthatdevelopedcountriesprovidenoncommercialtechnology assistancetodevelopingcountriestohelpthemcopewithclimatechangeand cultivatelowcarbonemissioneconomies. Byshifting thefocus ofclimate talksto adaptation and away from mitigation boththerichandpoorcountriescouldavoiddoingwhattheyhave dreadedthemost:demandingthatcountrieswithentrenchedeconomicinterests reducetheirgreenhousegasemissions.Chinahasresistedproposalstoimposea globalcarbontax aproposalsupportedbytheEU asamitigationmeasurefrom whichrevenuecouldbeusedtofinancetechnologicaltransfers.Ahighertrade dependencewouldresultinasharingoftheburdenassociated with Chinas energyintensiveindustriesandresultingcarbonemissions.In2005 Chinas GDPwasRMB18 670billion anditsexportsofgoodsandservicestotalled aroundRMB6 858billion.In2006 ChinasGDPwasRMB21 438billionand itsexportsofgoodsandservicesRMB8 396billion EconomistIntelligenceUnit 2007 .ChinaisagainsttheglobalcarbontaxproposedbytheEU becauseit believesitwouldhinderitseconomicdevelopment. 4.4 ChinasShifttoaLowcarbonEconomy Thegloballowcarbonfutureandtheemergenceoflowcarbontechnology willenhancetheenergyindustryworldwide aswellasthestrategicpositionof theequipment manufacturingindustry.Chinaisfacingbothunprecedented competitivepressureandopportunitiesfordevelopment.Intheprocess China hasstrengtheneditslaws regulations policies systemsand management mechanismstoactivelyaddressclimatechange andalsotocreateastrong institutional policyandmarketenvironmentforthelowcarbondevelopmentof enterprises.Withregardtoitsindustrialinfrastructureandcapacities Chinahas carriedoutindustrialupgrades eliminatedoutdatedproductioncapacityand focusedonenergyefficiencyandpositiveinvestmentsingreenenergy.More importantly range oftools have been used to help establish market mechanismsandindustrialsystems suchasencouragingtechnicalinnovation promotinglegislation changingconsumptionpatternsandestablishingacarbon market.Atthesametime Chinahasalsoappropriatelyadjusteditstradepolicy imposedrestrictionsontheexportofhighenergyconsumptionproductsand