SHANGHAI - European Council President Herman Van Rompuy said Wednesday here that he hopes the European Union (EU) and China will work together to address their common challenges.

Van Rompuy made the remarks in his speech at China Europe International Business School (CEIBS) in Shanghai.  "We can all benefit from addressing our challenges together while exchanging best practices,"  he said.

He mentioned three aspects of the exchange, including innovation, urbanization and talents.

In his speech, Van Rompuy suggested China and Europe establish another academic institute, besides the existing CEIBS in Shanghai and the China-EU School of Law in Beijing.

Van Rompuy also highlighted the importance of bilateral trade between China and the EU.

"Two decades ago, China and the EU traded almost nothing at all. Today, China is the EU's second largest trading partner. Thus, there can be no doubt that our economies are increasingly dependent upon each other,"  he said.

Van Rompuy said that it is also necessary to establish a  "China Chamber of Commerce" - similar to the EU Chamber operating in China - to help Chinese investors to fully exploit the opportunities in the EU market.

Van Rompuy is making a five-day visit to China that started on Sunday, which is his first official visit to China since he became EC president on January 1, 2010.