Production capacity cooperation opens new opportunities for China, Europe

During a meeting with Belgian Prime Minister Charles Michel on Monday, Li emphasized cooperation in production capability and equipment manufacturing in third-party markets; when meeting French President Francois Hollande on Tuesday, Li and Hollande held concrete and in-depth discussions on cooperation in third-party markets.

On how China and Europe will embark on international production capability cooperation, Li proposed four breakthrough points during his European trip.

The first is the docking of China-EU investment plans, starting with those investment plans on infrastructure.

In November, European Commission President Jean-Claude Juncker unveiled a 315 billion euro ($352 billion) investment plan, called "the Juncker investment plan," to finance projects aimed at rejuvenating the EU's economy.

Juncker recently told Xinhua that the EU seeks to dock "the Juncker investment plan" with China's "Belt and Road" initiative.

Second, China and the EU can focus on equipment manufacturing to achieve a breakthrough in cooperation with third-party markets.

During Li's French trip, China and France issued a joint statement on cooperation with third parties and a joint statement on China-France nuclear cooperation.

Third, in order to facilitate financing to businesses, China and the EU should make a breakthrough in financial cooperation.

During Li's visit to France, China and France agreed to set up a mutual fund to support cooperation with third parties. Meanwhile, the upcoming Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund also will guarantee the financing to China-EU cooperation with third-party markets.

Fourth, there should be freer trade and investment between China and the EU as international production capability cooperation needs resources worldwide.

Compared with a bilateral trade valued at $600 billion, investment between China and EU was merely $20 billion in 2014.

Currently, many Chinese enterprises go to Europe to look for mergers and acquisitions. The Financial Time has urged the two sides to conclude a bilateral investment pact to facilitate Chinese acquisitions in Europe.