Economy

Business leader calls to boost China-EU economic ties

(Xinhua)
Updated: 2010-10-06 14:05

BRUSSELS - As China undergoes economic transformation and Europe recovers from the financial crisis, it's high time the two sides expand economic and trade relations, said a Chinese business leader.

After decades of efforts, China and Europe have entered a new era of trade cooperation with a great prospect for further expansion, Wan Jifei, chairman of the China Council for the Promotion of International Trade (CCPIT), told Xinhua News Agency in an interview Tuesday.

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Wan, who is leading a high-level Chinese delegation for the EU-China Business Summit to be held in Brussels Wednesday, said Europe is important to an emerging economy like China, which is in a crucial economic transformation period trying to readjust its industrial set-up and foster the development of high-tech and high value-added industries.

With its advanced hi-tech, manufacturing, medicine and chemical industries, Europe could be a great source of knowledge for Chinese enterprises, as some Chinese firms have already set up R&D centers in the continent, Wan said.

European could also share experiences with China on how to develop a low-carbon economy and reduce greenhouse gas emissions, he added.

Chinese companies are increasingly interested in investing in Europe, Wan said, adding that he is leading a "national team" of Chinese firms to Europe.

China, with its robust economic growth and huge market, presents a great business opportunity for Europe, which is striving to sustain its recovery from the financial crisis and create jobs, he said.

In fact, some European firms have already seen the Chinese market as a way to help get them out of the current difficulties, he said.

The European Union (EU) has become China's biggest trade partner and largest export market, while China is now the second largest trade partner of the EU and its primary source of import. The bilateral trade reached $36.41 billion in 2009, accounting for 16.5 percent of China's total external trade.

But challenges remain for the two-way trade ties, notably the trade frictions, and the two sides need to look at the issue objectively and resort to negotiations, arbitrations, legal measures or a dispute settlement mechanism under the World Trade Organization (WTO), he said. Trade wars would be the last thing the two sides want, he said.

Another issue is that Chinese investors still face a number of obstacles in Europe, such as higher labor costs, unfamiliarity with related labor laws and regulations, and higher taxes, Wan said.

Despite the challenges, the overall prospect for China-EU economic and trade relations are very bright, and Wednesday's business summit is expected to add momentum to the bilateral trade ties, he said.