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By prospect   May 2005

Chinese revenge on Rover?Mutter it not in the Midlands Labour marginals, but some foreign office officials believe that China scuppered the Rover deal as revenge for Britain’s role in blocking the EU plan to lift the arms embargo on China. When the US objected to the lifting, Britain and some other EU states agreed to leave it in place, angering France and Germany (as well as China). With Britain next in the EU presidency the issue won’t now return until 2006. Critics say the original deal shows the EU’s naivety: it won no trade or political concessions from China in…

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