Chinese Premier, Wen Jiabao, and European political and business leaders have met in Nanjing for the 12th China-EU summit. Both sides aim to reach consensus on tackling the global financial crisis and climate change, and boosting China-EU ties.

Chinese Premier Wen Jiabao (3rd L), European Commission President Jose Manuel Barroso (3rd R) and Swedish Prime Minister Fredrik Reinfeldt (2nd R), whose country currently holds the rotating EU presidency, co-chair the 12th China-EU summit in Nanjing, capital of east China's Jiangsu Province, Nov. 30, 2009. [Xinhua]

The China-EU summit is the highest consultation mechanism between both sides.

The EU is represented by European Commission President, Jose Manuel Barroso, and Swedish Prime Minister Fredrik Reinfeldt, whose country holds the EU's rotating presidency.

Economic issues are high on the agenda of their talks.

The two sides' major concerns are how to maintain the current economic recovery amid the worst financial crisis in decades. Discussion has centered on whether an early withdrawal of the stimulus policies is feasible.

Chinese Premier Wen Jiabao told European leaders that an early withdrawal of the current stimulus policies may not be a wise choice for China's economy.

He noted that the stimulus measures are still needed to consolidate the momentum of economic progress. The Premier warned an untimely withdrawal could undermine achievements China has made so far. China announced on Friday that it will continue its proactive fiscal policy and moderately easy monetary policy next year.

The EU is still weighing up whether to withdraw its stimulus packages in Euro Zone next year. But EU leaders agree that continuity in China's macro-economic policies is in the best interest for Europe and the world.

The yuan exchange rate is also one of the major issues on the agenda. The EU business community has urged China to allow the reminbi to appreciate faster. Wen Jiabao says the Chinese currency has been steady and contributed to global financial stability. China will gradually increase the flexibility of the RMB's exchange rate.

China is also looking forward to concrete achievements at the upcoming Copenhagen Summit on climate change. China has already announced that it will reduce the intensity of carbon dioxide emissions per unit of GDP in 2020 by 40 to 45 percent compared to 2005 levels. The Chinese government says the voluntary action will be a major contribution to the global effort in tackling climate change

Wen Jiabao also called for China-EU relations to be more strategic, comprehensive and stable. He called on the two sides to expand consensus on major issues that concerned the development of the international community, and deepen comprehensive cooperation.