Sweden seeks China's support against protectionism

As the global economic crisis continues to spread, fears have grown that nations will worsen the situation by retreating from open markets — as they did during the Great Depression. This has prompted the World Trade Organization to step up monitoring of protectionist trade policies.

Swedish Foreign Minister Carl Bildt, speaking at the end of a three-day visit to China, said the Europeans and the Chinese both had reason to be concerned about the "Buy American" clause that the U.S. Congress added to the country's $787 billion economic stimulus package.

The provision requires that U.S. iron, steel and other manufactured goods be used for public buildings and other public projects paid for under the bill. The final language makes clear, however, that the policy must not violate U.S. obligations under existing international trade agreements.

"That (provision) is not something we Europeans or the Chinese like and I think we should speak up," Bildt said in an interview with The Associated Press.

In his meetings in Beijing, Bildt also discussed how China can help replenish the resources of the International Monetary Fund, which European leaders say needs to receive double its current funding to help members respond to the economic crisis.

Bildt said it remained to be seen what position China would take on the issue. Beijing has been pushing for developing countries to have more influence at the IMF and other global bodies, and last year gave no indication whether it might heed appeals to use some of its $2 trillion in reserves to help expand an IMF stability fund.

"It's important that we strengthen the possibilities of the IMF to help nations that are going to be in difficult situations," Bildt said. "China can help in that respect."

Bildt's visit comes as Sweden prepares to take over the rotating presidency of the European Union later this year.

The bloc's relations with China were tested last year by a diplomatic dispute over a visit to Europe by the Dalai Lama, Tibet's spiritual leader, whom the Chinese accuse of supporting Tibetan separatism.

China canceled a December summit between the sides to protest talks between French President Nicolas Sarkozy and the religious leader.

Bildt said that despite the spat, the EU would still press China to en-gage the Dalai Lama — while making clear the Europeans respected China's territorial integrity.

"We should continue to say to the Chinese authorities that they must pursue a dialogue with the Dalai Lama. The nature of the dialogue is for them and the Dalai Lama to decide," Bildt said.

In January, EU and Chinese leaders agreed to hold a summit in May in the Czech Republic, which holds the current EU presidency.