Phoenix TV:
My question is for Mr. Wang. Despite multiple challenges last year, the economic and trade cooperation between China and Europe was taken up a notch. How do you evaluate the current economic and trade relations between China and Europe, and what are your expectations for the future? Thank you.
Wang Wentao:
Thank you for your question on the current state and outlook.
China and the EU are two major independent forces globally with broad strategic consensus and shared interests. We are significant economic and trade partners who complement each other and conduct mutually beneficial and win-win cooperation. In 2021, despite the complex and severe situation, economic and trade cooperation between China and the EU continued a momentum of rapid growth.
Statistically speaking, both the "quantity" and "quality" of bilateral trade have improved. In terms of "quantity," the trade volume between China and the EU has exceeded $800 billion, hitting a record high. China remains the largest trading partner of the EU, and the EU is China's second-largest trading partner. In terms of "quality," the bilateral trade structure has been continuously optimized, and the growth rate of trade in aerospace, biology, optoelectronics, electronics, materials, and other fields has exceeded 30%. In 2021, the agreement between China and the EU on geographical indications took effect. China-Europe freight train trips hit about 1,000 by month and 10,000 by year. Last year, a record 15000 China-Europe freight train trips were made, up 22% from the previous year.
Steady progress has been made in two-way trade. The two-way trade between China and the EU has exceeded $270 billion, and there are sound investments and cooperation in the fields such as finance, vaccine research and development, new energy, electric vehicles, and logistics. China's investment in the EU increased, bucking the trend. According to a European Union Chamber of Commerce survey in China, 60% of the surveyed companies plan to expand their business in China. Nearly half of the surveyed companies' profits in China are higher than the global average. In October last year, I met with the president of the European Union Chamber of Commerce in China. He told me that many companies were optimistic about the Chinese market and China's future prospects and expressed willingness to continue to increase investment in relevant fields.
Meanwhile, economic and trade exchanges have been deepened. Mechanisms for exchanges at all levels, including the China-EU High-level Economic and Trade Dialogue, continue to play a role, and cooperation platforms between local governments and enterprises have become more complete. For example, the 2nd China-Central and Eastern European (CEEC) Countries Expo was successfully held. Four hundred twenty-five companies from CEEC countries participated in the expo, and 7.46 billion yuan of intentional purchases with CEEC were made. In addition, some EU companies actively participated in the 4th China International Import Expo (CIIE). The number of exhibitors, exhibition area, and intentional deals from EU companies accounted for more than one-third. Ireland was the guest country of honor for the China International Fair for Investment and Trade last year. This year, France will be the guest country of honor for the China International Consumer Products Expo this year.
President Xi Jinping pointed out that the two sides should stay committed to the comprehensive strategic partnership and the principle of mutual respect and mutual benefit, so as to ensure consistent, sound, and steady development of China-EU relations. We believe that China's development is an opportunity for the EU, not a challenge, nor a "threat," as some have claimed. We think that China-EU cooperation outweighs the competition. Of course, we also agree that the history, culture, social system, and development stage between China and Europe are different. Therefore, it is not surprising that some differences and divergence of views exist.. However, the two sides can promote healthy competition by strengthening communication. China and the EU are partners rather than rivals.
In the future, we are willing to work with the EU to implement the important consensuses reached by leaders of the two sides, firmly maintain the direction and underlying principle of China-EU economic and trade relations from a strategic perspective, synergize the Belt and Road Initiative with the EU's Global Gateway strategy, expand areas of cooperation, and deepen cooperative mechanisms. The two sides can advance pragmatic cooperation in various fields such as epidemic prevention and control, green development, digitization, finance, and technology, advance the process of ratification and entry into force of the China-EU investment treaty, and inject stability and positive energy into the China-EU relationship.
We can strengthen coordination and cooperation under multilateral frameworks such as the G20, UN, and WTO, promote the implementation of the Global Development Initiative, uphold the WTO-centered multilateral trading regime, and jointly promote the WTO reform in moving in the right direction. We should uphold openness and inclusiveness, reject the zero-sum mentality, oppose protectionism, and deepen market opening-up. We can strengthen cooperation between China and the EU as well as in third-party markets so as to contribute to the economic development of both sides and promote the economic recovery and stability of the whole world. Thank you.
