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Premier urges early EU recognition of China's market economy status

(China Daily)
Updated: 2009-09-10 07:47

Early recognition of China's market economy status by the European Union will help in fueling free trade and a recovery from the world financial crisis, Premier Wen Jiabao said Wednesday at the Great Hall of the People in Beijing.

Wen expressed his wishes to Britain's Business Secretary Peter Mandelson as he urges Britain to play an active role in the decision-making process.

Premier urges early EU recognition of China's market economy status

Premier Wen Jiabao holds talks with Britain's Business Secretary Peter Mandelson at the Great Hall of the People in Beijing yesterday, urging Britain to play an active role in pushing the EU to recognize China's market economy status. Liao Pan

"This will be conducive to China-EU relations, to free trade and to the recovery and growth of the world economy," Wen told Mandelson.

New Zealand became the first country to recognize China's market economy status in 2004. More than 70 countries and organizations have recognized China as a market economy since then, including Russia, Australia, South Africa, the Republic of Korea and the Association of Southeast Asian Nations.

Britain reaffirmed its support for China's full market economy status in May and UK officials said they would actively encourage the EU to recognize the Chinese economy at as early a date as possible. The support from Britain was announced at the second China-UK Economic and Financial Dialogue held in London.

Since the global economic crisis, leaders from China and Britain have been in close communication and coordination with each other, combining to help the international community with the crisis, Wen said.

"All these moves signified the vitality of the China-Britain strategic partnership," Wen said.

China and Britain are working toward a two-way trade value of $60 billion by 2010, a figure agreed by Premier Wen and British Prime Minister Gordon Brown in January of last year.

Despite the global downturn, China-Britain trade hit a record high of $45.6 billion last year.

Currently, Britain is China's third largest trading partner in the EU and the largest investor.

Mandelson is leading a trade delegation to Beijing.

In a speech at the Party School of the CPC Central Committee Tuesday morning, Mandelson said Britain and the EU will continue to argue for wider access to China's markets and for direct investment in the country.

But he said these arguments would not affect the overall relationship between Britain, EU and China.

Mandelson, the former EU Trade Commissioner, emphasized that the EU itself had an important role to play in making its relationship with China a success.

"We need to develop a clearer and consistent channel for communicating with China, especially on trade and climate change issues," said Mandelson, who will also travel to Changsha, capital of Hunan province.

Experts said that Mandelson's visit, which came after Premier Wen's visit to Britain and the China-UK Economic and Financial Dialogue, will be an impetus to bilateral cooperation in trade and investment.

Mandelson can also play an active role in improving the China-EU relationship, said Pang Zhongying, a scholar in international relations at Renmin University of China.

"The EU's early recognition of China's market economy status ensures smooth trade between both sides. If Britain can take the lead in the process, it can help further develop China-EU partnership," Pang said, adding that the EU also needs to reflect its China policy.

China Daily - Xinhua

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