China here on Wednesday expressed the will to start as soon as possible joint feasibility study on a China-EU free trade agreement (FTA).

China made the appeal in a policy paper issued Wednesday which defines its policy objectives towards the European Union and blueprints comprehensive bilateral cooperation in the next 5 to 10 years.

China will actively advance negotiations of an investment agreement between China and the EU, and strive to achieve an agreement as soon as possible to facilitate two-way investment, said the policy paper with regard to bilateral economic cooperation and trade.

"China views the EU as one of its most important trade and investment partners and hopes that both sides will contribute to the long-term, steady and in-depth development of their economic and trade relationship," it said.

"The EU should commit to resolving economic and trade frictions with China through dialogue and consultation, act cautiously when resorting to trade remedy measures and create a good trade environment for the two sides," said the policy paper.

China called on the two sides to continue to make use of the China-EU High-Level Economic and Trade Dialogue, the China-EU Economic and Trade Joint Committee and other mechanisms as a platform for policy coordination, promoting cooperation and addressing the concerns of both sides.

"China will continue to urge the EU to ease its restrictions on and facilitate high-tech product and technology export to China, so as to release the great potential of bilateral high-tech trade," it said.

China also expressed the will to enhance cooperation in such areas as quality supervision, inspection and quarantine, and e-commerce.

Concerning fiscal and financial cooperation, China expressed welcome for financial institutions from EU member states to start business in China under relevant Chinese laws and regulations.

"China hopes EU member states will actively open their markets to the Chinese financial sector and support Chinese financial institutions in setting up branches and doing business in the EU," the policy paper said.

China also seeks to deepen the China-EU Urbanization Partnership, saying China will intensify cooperation on strategies and policies relevant to the development of urbanization with the EU.

Entitled "China's Policy Paper on the EU: Deepen the China-EU Comprehensive Strategic Partnership for Mutual Benefit and Win-win Cooperation," the paper is the second China's policy paper on the EU, with the first one issued by the Chinese government in November 2003.