China-EU Summit Opens with Strong Focus on Trade
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Chinese and European leaders meet in Brussels today for the high-level EU-China summit with the emphasis on increasing trade ties between the two. Trade between China and the EU, the world’s largest trading block, has doubled since 2003, reaching 428 billion euros ($554 billion) last year.
The summit will also be the last for Chinese prime minister Wen Jiabao, who will be stepping down as head of the Communist Party’s powerful politburo standing committee later this year.
Chinese and European leaders meet in Brussels today for the high-level EU-China summit with the emphasis on increasing trade ties between the two. Trade between China and the EU, the world’s largest trading block, has doubled since 2003, reaching 428 billion euros ($554 billion) last year.
The summit will also be the last for Chinese prime minister Wen Jiabao, who will be stepping down as head of the Communist Party’s powerful politburo standing committee later this year.
Bilateral trade between China and EU has more than quadrupled under Wen’s nine-year leadership, and senior EU officials, including European Council President Herman van Rompuy and foreign policy executive Catherine Ashton will be eager to ensure that trade policies remain open and progressive.
Related News: China Promises to Keep Investing in Eurozone
Related News: China’s CIC Receives $30 Billion Boost to Buy European Assets
Trade between China and the EU, the world’s biggest trading bloc with a market of 500 million people, rose to 428 billion euros in 2011, having doubled in size since 2003.
According to Reuters, external trade is “one of the few bright spots” in the faltering eurozone economy and represents a “critical source of growth for the region’s economy”
“Chinese companies are increasingly investing in Europe, while the Chinese government is an important buyer of the debt of euro zone governments. China’s foreign exchange reserves are the world’s largest at $3.24 trillion, and economists say roughly a quarter of that consists of euro-denominated assets,” Reuters adds.
In a commentary published on Wednesday, Xinhua, a government-owned news agency, reiterated that the best way for China to help the EU is to expand its direct investment in EU countries, rather than buying government bonds.
The commentary also dismissed any political agenda on China’s part, arguing instead at “direct investment from China will no doubt promote economic growth in Europe and create jobs, increase tax income and promote research and development in Europe.”
Calling for mutual political trust and economic cooperation, China warned that “trade protectionism is always the worst solution” while downplaying the economic significance of their 67 billion euros trade gap.
An EU official, who spoke to Reuters on the condition of anonymity, described the trade disputes as “relatively routine” and said they were being worked at on a technical level between the EUC and the World Trade Organisation. He added:
[quote] There is a huge amount of trade between the EU and China, and yes, there are some tensions. We have to keep things separate from the dialogue that we have. We need a successful China … and China needs a successful EU. [/quote]
Related News: China Triples its Investment in Europe: Study
Related Story: Can China Alone Save the Eurozone?
