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Source: www.asiaecon.org |

CHINA AIMS TO BOOST TRADE TIES WITH EUROPE


A business delegation, led by China's Minister of Commerce Chen Demming, is departing to Europe in an effort to improve Sino-European trade ties and multilateral cooperation. The visit is expected to increase bilateral trade and promote counter-protectionism ideologies.



A business delegation, led by China’s Minister of Commerce Chen Demming, is departing to Europe in an effort to improve Sino-European trade ties and multilateral cooperation. The visit is expected to increase bilateral trade and promote counter-protectionism ideologies.

The delegation is essentially a procurement team compromised of 300 businessmen from joint ventures and private companies involved in numerous sectors of China’s economy, including food, textile, mining and health. The team is expected to visit Germany, Switzerland, Britain and Spain, during the next few weeks. The mission was organized as a result of deals made by Chinese Premier Wen Jiabao and his respective counterparts during his visit to the four European countries in early January. 

Although, specific details have no yet been released, officials expect the delegation to spend over $2.2 in trade deals.  The delegation hopes to focus primarily on technology and equipment, including: aircraft engines, machinery, automobiles, components, and railway and telecommunication products. Deals will also include other goods such as food and pharmaceuticals.

China’s increasing demand for European goods have been largely influenced by the results of the $585.5 billion stimulus package released last November. The package includes several infrastructure projects, boosting China’s demand for equipments offered in Europe, China’s most important source of technology imports.

The European Union is currently China’s largest export market and biggest trading partner. China is EU’s second largest trading partner, with China-EU trade volume constituting 16.6% of China’s total overseas trade volume. Bilateral trade reached $425.6 billion in 2008, a 19% increase from the year before.

Affected by the global economic crisis, bilateral trade between the two sides in January reached $28 billion, an 18.7% decline from the same month of the previous year. China expects the visit to revive the slowing trade between the two regions. The visit is also expected to ease tensions and balance trade volumes,  which are currently lopsided with China reportedly achieving a $160 billion trade surplus with Europe last year.

The strengthening of bilateral ties will promote cooperation and economic development for both sides.

China hopes to import higher numbers of advanced technological equipment from Europe, as it would meet domestic demand, improve economic relations, and help to develop China’s economic modernization. Moreover, China would profit from timely deliveries, price insurance and quality of products, all of which are guaranteed by the European Union. Meanwhile, a boost in trade would help to stimulate Europe’s slumping economy.

China also expects the visit to promote the country’s vigorous demand and stable growth even amid the economic crisis. But most importantly, Chinese officials further anticipate the collaboration to encourage trade at a time of rapidly growing protectionism trends. China, along with numerous European leaders such as British Prime Minister Gordon Brown, believe that trade is the only way to revive the economy and generate a sustainable and healthy global economy.

Source: www.AsiaEcon.org
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Source: www.asiaecon.org |


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