Removal of barriers vital to EU-China trade: official

The removal of trade and investment barriers between the EU and China is essential for win-win exchanges in all areas, said a top EU official.

The EU and China, as strategic partners and two large trade blocs in the world, have a lot to gain from each other, Mauro Petriccione, deputy director general for trade at the European Commission, told Xinhua in an interview.

"Our partnership of course goes beyond trade and investment, but the trade dimension can facilitate other areas of cooperation as diverse as scientific research or urbanization," he said.

The EU and China, given their size in world trade, also have a shared responsibility to lead by example and support a rules-based multilateral trading system," said Petriccione.

"China is our second-biggest trading partner and as such naturally remains at the forefront of EU trade policymaking," said the EU official.

Talking about the Chinese attitude toward reaching an investment agreement with the EU, the trade official said: "The EU and China agreed in their 2020 Strategic Agenda for Cooperation ... to aim for a comprehensive agreement that would cover not only investment protection, but also market access on investment. The EU and China are engaged in intensive negotiations that we hope will lead to a successful conclusion."

According to Petriccione, the investment negotiations will move forward if there is top-level political support both in the EU and in China.

"I think this is the case: these negotiations are a priority for both of us. This has been regularly reaffirmed by our leaders since the launch of the negotiations," he said.

On the EU priorities to reach the deal, he said the EU wants to maintain a high level of protection to investment and a priority of market access.

This would indeed contribute to stopping and even reversing the recent trend of decrease of foreign investment flows, also attracting investments in sectors such as high-tech manufacturing or high value-added services, he stressed.

Welcoming the Chinese government's current reform of investment regime, Petriccione said: "We have seen some encouraging steps."

Referring to the large daily trade volume between the EU and China, the EU trade official said: "We have to look after our trade relationship, and ensure it remains mutually beneficial by properly addressing the irritants that exist between the partners."

There is still potential to further develop two-way exchanges, in particular in the areas of services and investment, he added.

A free trade agreement (FTA) between the EU and China is not the only option. For the time being, the EU and China have clearly set out their thinking on a potential FTA in the 2020 Strategic Agenda for Cooperation, noted Petriccione.

"Investment negotiations remain our joint priority, and we might consider other perspectives at a later date, when the conditions are right," he said.