China's Premier Li Keqiang (front right) with other leaders during the Asia-Europe Meeting in Milan on Oct 16. Alessandro Garofalo / Reuters

Chinese and EU leaders underline importance of relationship

Leaders of China and the European Union have agreed to speed up investment treaty talks so as to further cement bilateral economic ties.

The pledge was made when Premier Li Keqiang met European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso during his visit to Italy for the 10th Asia-Europe Meeting summit, in Milan over two days from Oct 16.

China, Li said, attaches great importance to its relations with the EU, China's largest trade partner. "We are each other's opportunities for development," he said.

The investment talks began during the China-EU summit last November. The new treaty is aimed at streamlining existing bilateral investment protection agreements between China and EU member states into a single, coherent text to improve the protection of bilateral investments and increase investment flows.

The value of goods and services traded between both sides every day is more than $1.34 billion (1.05 billion euros), but the flow of investment is relatively low.

According to EU figures for 2012, China's direct investment in the EU accounted for only 2.2 percent of all foreign direct investment in the EU.

The agreement will help China upgrade its economy and better integrate with the world economy, analysts say.

"The treaty will offer a good opportunity for China to attain international standards on trading and investment," says Zhao Junjie, a researcher on European studies with the Chinese Academy of Social Sciences.

European countries are good at setting rules to regulate trading and investment practices, so these countries play a dominant role in global economic practices, he says.

European investment in China, including transfers of advanced technologies and expertise, will help China transform to a more sustainable economy and upgrade its economy in the world industry chain, Zhao says.

Chen Mingming, former Chinese ambassador to Sweden, says: "To further implement the reform and opening-up policy, China needs a better investment environment overseas."

China is taking measures to boost foreign trade, including reaching new free trade agreements and tapping the potential of existing free trade agreements with foreign countries.

Analysts say it will take time to conclude an investment treaty because China and the EU have different views on market openness and different expectations for the treaty.

Meeting European leaders, Li called for the two sides to implement the China-EU partnerships for peace, growth, reform and civilization.

They should also strengthen their collaboration in areas such as economics and trade, energy, urbanization, interconnectivity, finance, science and technology and people-to-people exchanges, he said.

He said he hoped the two sides can respect each other, treat each other as equals, and address frictions and differences in a proper way through dialogue and negotiation to ensure the healthy and stable development of bilateral relations.

"The prosperity of Europe benefits the development of the world," he said.

The European integration process is accelerating, and the euro, as a major international currency, has remained stable, which will play a positive role in promoting multi-polarization and the diversification of international reserve currencies, he said.

Li said China appreciates the contribution Van Rompuy and Barroso have made during their mandates.

Taking the 40th anniversary of their diplomatic relations next year as an opportunity, China is willing to work with the EU to explore new prospects in developing ties, Li said.

He also urged China and the EU to improve communication and coordination in international and regional issues to jointly promote global peace and development.

Van Rompuy and Barroso expressed appreciation over China's faith in and support for Europe and the euro, saying the EU will continue unswervingly to uphold a friendly policy toward China.

They pledged that the bloc will maintain close dialogue and cooperation with China to implement the EU-China 2020 Strategic Agenda for Cooperation, which the two side adopted at the 16th China-EU Summit held in Beijing last year, properly deal with any trade friction, and sign the investment treaty as early as possible.

The EU stands ready to join China in promoting collaboration between European and Asian countries to address global challenges, the two EU leaders said.

They said they hoped the 17th EU-China Summit can be held soon.

Zhou Wa and Xinhua contributed to this story.

(China Daily European Weekly 10/24/2014 page15)