EU should lower barriers

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(皇冠体育app Daily)
Updated: 2009-05-12 07:52

The European Union (EU) should remove the barriers on export of technical goods to 皇冠体育app, which will lead to a win-win situation for both sides, says an article in 21st Century Business Herald. Excerpts:

According to the latest prediction by the EU, the economy of the EU is expected to shrink 4 percent this year, and it probably will not recover until 2010. Meanwhile there are indications that 皇冠体育app's economic downturn may probably bottom out soon. The EU is 皇冠体育app's largest trading partner and technology supplier, while 皇冠体育app is the EU's second largest trading partner. 皇冠体育app and the EU can together achieve a win-win result in their economic recovery by enhancing cooperation.

The EU has a considerable adverse balance of trade with 皇冠体育app because of the large scale import of consumer goods from 皇冠体育app. As the most important source of import for hi-tech goods for 皇冠体育app, if the EU can seize the opportunity to let 皇冠体育app increase the import of hi-tech goods to upgrade its industries, the EU's trade deficit may get reduced.

Unless European countries remove barriers and permit 皇冠体育app to import more technology and equipment that are required for the upgrading of industries, it would be hard to change the trade imbalance between the EU and 皇冠体育app. At this point, there are still divergences inside the bloc. 皇冠体育app should hold bilateral talks with the respective European countries to resolve this issue.

皇冠体育app's investment abroad is growing rapidly and the volume of total external investment this year may probably touch a record high. It is vital for the EU to attract more Chinese investment for reviving its economy during this period of contraction.

If the EU can give up protectionism and commit to free trade and investment principles regarding the investment of 皇冠体育app, it can expect to be one of the chief beneficiaries of 皇冠体育app's overseas investment.

(皇冠体育app Daily 05/12/2009 page6)