Premier Wen Jiabao on Monday put forward a five-point proposal on cooperation between China and the European Union (EU), hoping that the two sides would increase cooperation in such fields as service trade, investment, and science and technology.

Addressing the EU-China Business Summit, Wen said China and the EU enjoy strong economic complementarity and broad prospects in economic cooperation.

To increase cooperation, Wen proposed that the two sides improve the level of service trade cooperation. Among the more than 160 service trade departments sorted out by the World Trade Organization, China has opened more than 100 departments to the outside world, close to the level of the developed countries.

"The EU enjoys great advantages in the modern service industry, and China and the EU share potential in service cooperation," Wen said.

The two sides should enlarge the scale of mutual investment, deepen cooperation in investment and open new investment channels to streamline the investment structure.

Wen also proposed the two sides promote exchanges and cooperation in science and technology, and encourage all kinds of companies, including medium-sized and small ones, to take part in the China-EU scientific and technological cooperation.

China and the EU should strengthen coordination in the world economy, jointly cope with challenges brought about by economic globalization and create an international environment conducive to enhancing cooperation.

The two sides should properly solve differences and friction between them, the premier said.

China and the EU have set up sound dialogue and consultation mechanisms in various fields over the past years, Wen said, hoping that the two sides would make full use of these mechanisms to deepen mutual understanding, narrow differences and boost cooperation.

Wen told a press conference that China-EU trade frictions are inevitable along with the soaring growth of bilateral trade ties, in which both sides need to properly conduct consultations.

China and the EU are working on an agreement to solve the trade dispute that left Chinese textile items blocked in European ports, he said.

"EU Trade Commissioner Peter Mandelson and Chinese Minister of Commerce Bo Xilai have almost reached consensus on the issue," Wen said, adding the agreement will be signed quite soon.

This year will witness the 30th anniversary of the establishment of diplomatic ties between China and the EU. "China-EU relations are enjoying the most dynamic and most fruitful period in history," Wen said at the summit, noting that the two sides have achieved rapid development of bilateral economic cooperation, maintained mutual trust in politics and made exchanges in culture.

"Practice in the past 30 years has proved that to develop the China-EU all-round strategic partnership is a correct choice of both sides," Wen said, noting that pushing forward such a partnership accords with the interests of both sides and is also conducive to world peace, stability and development.

Wen said China is still an underdeveloped country in economic terms, and has a long way to go to realize modernization. China, as a major consumer and producer of energy, pays equal attention to exploring and saving energy and trying to apply advanced science and technology and advanced industrialization to solve the conflicts between supply and demand of energy.

China does not seek a trade surplus, Wen said, noting that China hopes to make joint efforts with its trade partners to solve the problem of unbalanced trade and achieve win-win cooperation.

China will firmly take the opening-up policy and adhere to the road of sustainable development, Wen said. "China, with a more open market and a favorable investment environment, will attract more foreign companies to do business here."

"Chinese and EU businesses should take the opportunity to inject more vitality into the China-EU strategic partnership," Wen said.

British Prime Minister Tony Blair said the EU and China enjoy wide fields and potential prospects in bilateral cooperation.

"The two sides should increase mutual trust and adopt right measures to eliminate differences, in a bid to create a sound environment for cooperation and promote both political and economic relations," he said.

He added that the two sides should work together to deepen cooperation in trade, education, science and environmental protection, and to maintain world peace and stability. "This accords with the common interests of both sides," he noted.

President of the EU Commission Jose Manuel Barroso said at the summit that China's reform and opening-up policy has helped China's economic growth, and China has made friendly and mutually beneficial cooperation with other countries through transparent and free trade.

China's economic development has brought new opportunities to the world's economy and has played an important role in pushing forward the world's peace and development, he said.

The EU will take a pragmatic and constructive attitude to discuss with China problems in bilateral trade cooperation, and promote smooth development of economic and trade cooperation between the two sides.

(Xinhua News Agency September 6, 2005)