Germany, EU urged to deepen cooperation with China

A group of prominent Chinese think tank experts are urging Germany and the European Union on Friday to deepen pragmatic cooperation with China in order to boost connectivity and protect the fragile global multilateral system.

"China and the EU should continue to focus on trans-border investment and two-way opening, so as to build a fair, open environment and mechanical framework for business," said Zhou Xiaochuan, former governor of China's central bank.

Zhou made the remarks at a seminar themed "Sino-German Economic Relations: Risks and Opportunities", co-organized by Koerber-Stiftung and the China Center for International Economic Exchanges (CCIEE) in Berlin on Friday. Zhou now serves as president of the China Society for Finance and Banking and adviser to the CCIEE.

Zhou has headed a high-profile expert group in Europe exchanging ideas with their European colleagues in a bid to forge a front line to defend the global multilateral system amid escalating trade wars between China and the United States.

In addition to Berlin, Zhou's delegation has traveled to Brussels and Geneva, holding frank and candid exchanges this week.

Zhou added that the bilateral investment negotiations between China and the EU should be accelerated, and cooperation on technology, human resources, education and businesses should be promoted.

Zhou also refuted some condemnation from US media as the Sino-US trade disputes recently escalated.

"Some criticism was not true, some deliberately played up small issues, while some exaggerated single cases as systematic problems," said Zhou, encouraging the academics to have more candid discussions for better mutual understanding.

Regarding China's slowdown in GDP growth, the former head of China's central bank said it is mainly due to domestic reasons, such as economic transformation and structural upgrading.

In his speech, Zhou responded to several highlighted issues such as intellectual property rights protection. Zhou reiterated the Chinese government's stance of protecting intellectual property rights and strengthening law enforcement.

"Compulsory technology transfers are explicitly banned, while we encourage the exchanges of knowledge and technology," he said, ruling out that China forces foreign companies to transfer their technology when considering investments in China.

Zhu Guangyao, former vice-minister of finance, said China and Germany are firmly advocating free trade and globalization, though differences exist in values and social systems.

"It is our responsibility to deepen our special partnership, though with different systems, and create more positive outcomes for both countries and the world at large," said Zhu.

"This time we discussed quite a few issues such as subsidies to State-owned enterprises and technology transfers, clarifying the stances of both sides and building mutual trust. In general, China and Germany are both defenders of multilateralism and peaceful development."

Max Hanisch, research associate in international economics at the German Institute for Economic Research in Berlin, said deepening trade relations is always a good idea between

China and Europe, but it is important to work on the differences and the structural problems between both sides.

The EU-China relationship is still strong and both sides share substantial advantages to enrich the ties, said Hanisch.

"If you look from the European side, the thing that Europe has to do in order to enter in the Chinese market is really a big issue."

Hanisch said both sides should go back to the idea of removing trade obstacles, with reduction as the main purpose.

"These should be the main goals in the future," said Hanisch.