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Cooperation in production capacity to benefit China, Europe

(Xinhua) Updated: 2015-07-01 17:38

Europe, meanwhile, boasts the most advanced and valuable technologies urgently needed by China to update its equipment and manufacturing capacities.

China encourages its best enterprises to participate in infrastructure construction projects such as the Trans-European Transport Networks, China-Europe Land-Sea Express Line and New Euro-Asian Continental Bridge.

European enterprises are also encouraged to join the "Silk Road Economic Belt and the 21st Century Maritime Silk Road" initiatives proposed by Chinese President Xi Jinping in 2013 with the aim to revive the ancient trade route between Asia and Europe.

Cooperation between China and Europe would also facilitate their expansion into the third-party market and lead to better performance both at home and abroad.

China will have to buy some of Europe's advanced equipment while giving full play to its manufacturing and assembly capacities in its cooperative projects with other developing nations and in the regions of Central and Eastern Europe.

China-Europe cooperation involving third-party markets is destined to be an all-win situation, as excessive production capacity in China will be used to galvanize developing countries' real economies while pressing for industry updates back home in China.

Europe is in the position to provide China with the elements it needs to grow, and in turn be rewarded with China's strengths to realize its re-industrialization.

Financial cooperation is also indispensable. China has announced plans to expand its purchase of bonds issued by the European Investment Bank (EIB) and improve the Renminbi Qualified Foreign Institutional Investor (RQFII) system.

In addition, China encouraged bigger roles of other investment and financing arrangements in the revitalization of the European economy, including the China-initiated Asian Infrastructure Investment Bank (AIIB).

Under the "Belt and Road" initiative, a Silk Road Fund has been set up by China to improve infrastructure connectivity between Asia and Europe.

The fund, according to Chinese Premier Li, will be used for cooperating with Europe in hi-tech development, infrastructure construction and financial services.

To promote their cooperation, China and Europe also need to further liberalize trade and investment and properly handle trade frictions.

All these measures would ensure a continued leap forward in their bilateral trade. It's highly feasible that China-Europe bilateral trade will exceed one trillion US dollars by 2020, as Premier Li said he hoped it would during his ongoing European tour.

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