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Economy

China, EU bilateral investment needs substantial expansion

(Xinhua)
Updated: 2010-09-14 16:41
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SHANGHAI?- China and the European Union (EU) have the potential for a substantial increase in bilateral investment as the current level of investments has failed to satisfy either side, officials say.

EU investment in China only accounts for 2-3 percent of its global investments, said Serge Abou, EU Ambassador to China, while speaking at a conference of the EU-China business partnership held Monday at the Belgium Pavilion at the Shanghai World Expo.

"We cannot be satisfied with the figures, given that China is a special partner with the EU and that China accounts for 7-8 percent of the world's economy," Abou said.

China, EU bilateral investment needs substantial expansionSummer Davos 2010 in Tianjin
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Meanwhile, China's investment (excluding financial investment) in the EU was also small, accounting for only about one percent of the total foreign investment, Abou noted.

Liu Yajun, Director-General of the Foreign Investment Department in China's Ministry of Commerce, said the EU has brought quality investment over the years to China in areas such as telecommunications, medicine, nuclear power and railway transport.

"This has helped the development of China's economy and industries. It has also promoted employment," Liu said, but he agreed that the EU's investment in China has much more room to grow.

Abou said sophisticated legislature and quality standards in Europe were perhaps important reasons for the EU's not being attractive to Chinese investors, but he said the continent was open to investment.

As China seeks to shift its economic growth pattern toward a greener and sustainable one, Liu Yajun said China would welcome EU investments in high-tech, services and energy saving industries.

Liu also encouraged companies from Europe to invest in the country's vast central and western regions, as this was consistent with China's overall strategy to develop the west, which was relatively underdeveloped compared with the country's eastern regions.

"China gives great significance to investors' opinions," Liu said, adding that the country would continue with its opening up policy while working to make a fair and transparent environment for investors.

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