Giving new momentum to China-EU economic and trade cooperation

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Giving new momentum to China-EU economic and trade cooperation

(People's Daily Online) 16:35, November 25, 2013

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At the tenth anniversary of the establishment of the China-EU comprehensive strategic partnership, the 16th China-EU Summit was held in Beijing. Both sides must absorb the experiences and lessons of the past, and maintain stable development of bilateral ties.

For China-EU economic and trade relations, there is an urgent need to expand trade and investment cooperation, build good channels of communication, and promote an agreement on investment conditions. This is of great significance for both sides to achieve cooperation and innovation in the current process of economic globalization, raising China-EU ties to a new level and bringing benefit to both peoples.

Over the past 10 years the bilateral relationship between China and the EU - as the largest developing country and the largest union of developed economies respectively - has made considerable progress, especially in economic and trade relations.

In 2012, China-EU trade volume reached more than 546 billion U.S. dollars. The EU has been China's largest trade partner and its largest source of imports for nine consecutive years, and China is also the EU's fastest growing export market. Currently, the EU is one of China's most important sources of technology, while the general public in the EU have access to “made-in-China” products.

During the international financial crisis, China and the EU made important contributions to world economic recovery through active communication, strengthened macroeconomic policy coordination, and a joint response to the crisis. With increasing globalization, China and the EU will have steadily closer economic ties. Resolving disputes through consultation and dialogue and creating new areas of cooperation are the approach which is in accordance with historical trends.

Undoubtedly there has been friction between the two sides as a result of trade protectionism, but this simply provides extra proof of the urgent need to open a new space for economic and trade cooperation. The amicable solution to a conflict over solar panels indicates that both sides have the ability and wisdom to manage trade disputes and maintain stability in the overall situation.

From January to October of this year, trade volume between the two sides exceeded 456 billion U.S. dollars, reversing a declining trend from the previous year.
But what is behind the new drive to boost EU economic and trade cooperation?

Concerning this issue, the two sides share relatively similar views. Karel De Gucht, EU Trade Commissioner, said this September that of the EU's foreign direct investment (FDI), only 2 percent flowed to the Chinese mainland, while 30 percent was going to the United States. Meanwhile, the EU only attracted 1 percent of China's FDI, while the U.S. took 20 percent.

Although investment ties between the two sides have strengthened, there is still room for improvement.

In the first ten months of this year, the EU's investment in China increased by 23 percent compared to the same period of 2012, and China's investment in the EU doubled.

Cooperation between Chinese enterprises and European counterparts boasting advanced technology and high-profile brands will highlight China-EU economic and trade cooperation, which will become the new driving force boosting economic and trade ties.

Furthermore, China has set itself the goal of building a moderately prosperous society in all aspects by 2020, and the EU is also stepping up implementation of the “Europe 2020 Strategy”. So the two sides should grasp this historic opportunity to give full play to the role of the existing dialogue mechanisms and expand trade and investment cooperation. China and the EU should promote investment agreement negotiations, oppose all forms of protectionism, and boost the development of an open world economy, thus raising China-EU cooperation to new heights.

Edited and translated by Liang Jun, People's Daily Online