Great Opportunities in Sino-European Trade Relations

Chinese and European delegates at Wednesday's seminar on "the Sino-Europe Trade and Economic Relations after China's WTO Accession" said bilateral trade and economic relations have great opportunities and potentials. The seminar has attracted 150 delegates composed of entrepreneurs and financial professionals from the European Union (EU) members as well as China.

Shi Jianxin, director general of the European Department of the Ministry of Foreign Economy and Trade, said, "The European Union is one of China's most important economic and trade partners.

"The Chinese Government is looking into the possibility of establishing a dialogue mechanism with the European Congress to enhance legal and policy information exchanges and facilitate the bi-directional investments in China and Europe."

The EU is China's third largest trade partner, after Japan and the United States. Latest statistics from the Chinese Customs show bilateral trade for the two sides hit US$76.63 billion last year, up 11 percent year-on-year.

From January to November 2001, the EU invested in over 12,000 projects in China with the actual investment amounting to US$29.357 billion

Shi Jianxin said, this is less than 3 percent of its total investment outside the European community, indicating a great investment potential in China.

Shi said EU's advantages in capital, technology and management would benefit from China's labor and market potentials.

Some modernized traditional industries in EU such as machinery, automobile and electronics will help China optimize its industrial structure and speed up its modernization.

Shi said the Chinese Government also encourages domestic businesses to invest in Europe and will cooperate with its EU counterparts in such areas as information technology, communication systems, bio-engineering technology and energy recycling.

The Commercial Counselor of the Austrian Embassy to China, Wolfgang Lanz, said, "We are very pleased at China's entry into the WTO and China's opening and reform has achieved much.

"We've been watching closely for opportunities for development in China. The Sino-Austrian trade volume grew more than 10 percent last year and a total of 150 Austrian businesses have invested in China."

Shi Jianxin said, China will in future absorb investment in such priority areas like electronics, information, bio-engineering, petrochemicals, and infrastructures such as ports, piers and roads.

China encourages multinational companies to set up regional headquarters and R&D centers in China's major cities. Foreign capital is welcome to contribute to the innovation of State-owned enterprises. Agriculture, and middle and small-sized businesses are also encouraged to attract foreign investment.

Philippe Brague, general manager of European Union Chamber of Commerce in China, said, "China's access into the WTO greatly enhances the EU's opportunities for investment in China. The Chamber of Commerce will as always help EU investors in all related services."

Chen Jiagui, vice president of Chinese Academy of Social Sciences, said, "China and the EU are two world economic giants. An open and developed China and a prosperous EU will benefit both parties as well as the whole world."

( January 17, 2002)