He made the remarks at a news conference held here Monday, concerning the commission's working document, Country Strategy Paper for China, released at the beginning of this year.

Pangratis said developed countries share the responsibility to help new members of the World Trade Organization (WTO) to integrate themselves into the world economy, especially developing

countries.

The Country Strategy Paper set out the framework for the European Union (EU) to cooperate with China from 2002 to 2006, and EC grants of about 250 million Euros over the next five years.

The paper also proposes three priority dimensions, including support for social and economic reform, strengthening the environment and sustainable development, promoting good governance and the rule of law.

Pangratis said that as the world's most populous nation, China experienced rapid economic growth over the last 20 years, and it had engaged in a wide range of social and economic reforms that were moving the country away from a centrally planned to a market-driven economy. These reforms were at the root of China's economic growth and very significant reduction of poverty.

However, he pointed out, China faced important challenges, like the large population living below the poverty line defined by the World Bank, the population growth at least until 2050, a growing proportion of elderly people, weak productivity in the agricultural sector and increased disparities between rural and urban incomes.

The EC was focusing on trade and technology cooperation with China, and working hard in other areas like agriculture, he said. The EC was supporting many projects tied with agriculture, like aid for social and economic reforms in the countryside and help to alleviate the impact of rural migration to urban areas.

(Xinhua News Agency March 26, 2002)