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OPINION> FROM THE CHINESE PRESS
EU should lower barriers
(China Daily)
Updated: 2009-05-12 07:52

The European Union (EU) should remove the barriers on export of technical goods to China, which will lead to a win-win situation for both sides, says an article in 21st Century Business Herald. Excerpts:

According to the latest prediction by the EU, the economy of the EU is expected to shrink 4 percent this year, and it probably will not recover until 2010. Meanwhile there are indications that China's economic downturn may probably bottom out soon. The EU is China's largest trading partner and technology supplier, while China is the EU's second largest trading partner. China and the EU can together achieve a win-win result in their economic recovery by enhancing cooperation.

The EU has a considerable adverse balance of trade with China because of the large scale import of consumer goods from China. As the most important source of import for hi-tech goods for China, if the EU can seize the opportunity to let China increase the import of hi-tech goods to upgrade its industries, the EU's trade deficit may get reduced.

Unless European countries remove barriers and permit China to import more technology and equipment that are required for the upgrading of industries, it would be hard to change the trade imbalance between the EU and China. At this point, there are still divergences inside the bloc. China should hold bilateral talks with the respective European countries to resolve this issue.

China's investment abroad is growing rapidly and the volume of total external investment this year may probably touch a record high. It is vital for the EU to attract more Chinese investment for reviving its economy during this period of contraction.

If the EU can give up protectionism and commit to free trade and investment principles regarding the investment of China, it can expect to be one of the chief beneficiaries of China's overseas investment.

(China Daily 05/12/2009 page6)

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