Chinese procurement in Europe Contributes to Bilateral Trade, Commercial ties

A high-level business delegation made up of Chinese officials and entrepreneurs left here for Europe on Tuesday in a move to enhance Sino-European trade and commercial ties.

The delegation will visit Germany, Switzerland, Spain and Britain. According to previous agreements with related European countries, the Chinese team will purchase advanced equipment and technology as well as key products and service worth more than 15 billion RMB (about 2.2 billion U.S. dollars).

The move followed Chinese Premier Wen Jiabao's "tour of confidence" to Europe from Jan. 27 to Feb. 3, during which Wen promised to dispatch a procurement team and expand China's European imports.

Amid the backdrop of an increasingly prudent world economic environment, the purchasing move sends a positive signal of China's vigorous demand and sustained growth, which is of great significance in expanding the mutual opening of markets between China and Europe, deepening bilateral commercial and trade cooperation, promoting both sides' economic development, bringing about the early revival of global economy as well as stemming trade protectionism.

The purchasing is a proof of the identity of interests between China and Europe under the current circumstances.

The European Union (EU) is China's biggest trading partner and largest export market, while China is the second biggest trading partner of the EU, with China-EU trade volume constituting 16.6 percent of China's total foreign trade volume.

To the European enterprises, expanding exports of advanced equipment and technology to China at the time of economic downturn will help them get out of the current predicament while meeting the market demand in China.

As pointed out by Kerry Brown, an expert on the Asian program at the Royal Institute of International Affairs, the Chinese team's visit would help European enterprises understand the demands and needs of the Chinese consumers and the vast Chinese market, so as to expand the export to China.

China's procurement in Europe also serves as a new driving force to boost its own economic growth.

Amid deteriorating external economic environment, there has been increasing demand within China to eliminate inefficient production and push for industrial upgrade.

In this regard, importing advanced technology and equipment from Europe is conducive to economic structure readjustment in China and will speed up its modernization process.

Therefore, the procurement of Europe's advanced equipment and technology to replace the outdated ones in China is not only a measure to confront the financial crisis, but also a strategic step in pursuing sustainable economic development for China as well.

Cooperation between China and Europe, the world's two important economies, has major significance in accelerating the world's economic growth.

In view of the current economic downturn, the core mission of the China-Europe ties should be to team up and withstand the challenge by figuring out each other's different demands and conducting cooperation based on comparative advantages of each side.

By organizing government procurement in Europe, China has showed its willingness to enhance cooperation with Europe, open up its market and jointly contribute to the revival of world economy.

Meanwhile, the move has fully demonstrated China's firm opposition against protectionism.

Although China has also fallen victim to the financial crisis, it did not shut the door and cordon off foreign competitors. Instead, it keeps on opening up.

The Chinese government did not constrain its economic stimulus plan for only domestic beneficiaries, instead, it voluntarily organize enterprises to expand imports.

While protectionism is gaining ground in some countries, the move of China advocates opening and mutually-beneficial trade, which not only helped check the spread of protectionism, but also created a credible trading environment for Europe and the world.

The global economic downturn triggered by the financial crisis has caused heavy losses for many countries. At this moment, what is most needed is confidence, which needs careful nurturing.

During his latest trip to Europe, Chinese Premier Wen expressed his confidence, and China's government procurement in Europe further has consolidated the confidence.

It is believed that the government procurement can gear up cooperation and coordination in the international community, boost the confidence to tackle the financial crisis, and make significant contribution to getting the world economy out of the current slump.