Song Zhe, Chinese ambassador to the European Union, says two-way investment benefits both economies. Provided to China Daily

'Impressive achievements' cap off China-EU relations

Song Zhe, Chinese ambassador to the European Union, is a believer in dichotomy when it comes to assessing the status of Sino-EU relations. First, what impresses him most are robust bilateral trade and investment, frequent high-ranking visits and more people-to-people exchanges this year, which have already boosted Beijing-Brussels relations to a record level of amity. "Recapping the impressive achievements, I'm encouraged to see that China-EU relations are at their best moment," Song says.

Song, who took his current job six months before the global financial turmoil unfolded in 2008, says bilateral trade has gradually shaken off the adverse influence of the international financial crisis and exceeded the pre-crisis level.

He estimates that bilateral trade is likely to total $470 billion (357 billion euros) this year after it hit $433.8 billion during the first 11 months, increasing by 33.1 percent year-on-year.

"Europe remains China's largest trading partner and export market."

Song also says China is the second largest and fastest-growing export market among the EU's top five export destinations. From January to October, the EU had invested $5.5 billion in China, 10.5 percent higher than the previous year. More European companies are shifting their investment from manufacturing to the service sector and more mergers, acquisitions and risk investments have been carried out.

Chinese enterprises have also begun to invest in Europe on a large scale. Song says that in the first three quarters, Chinese direct investment to Europe grew more than fivefold and created thousands of jobs for European countries.

Song says these investments have brought hope to a lot of European enterprises faced with difficulties. Many European economists and media agree that China's soaring demand for mechanical equipment and luxury goods have also become an important driving force for the economic recovery of many European countries.

"Some people may take a simplistic approach to interpret the trade imbalance between China and Europe as China gains more from cooperation while Europe suffers," Song says.

"But if we take a comprehensive perspective to analyze both trade and investment, we will find that China-EU business ties are balanced, win-win and mutually beneficial."

The fast-growing Chinese market has provided European companies with impressive investment returns. Song cites some scholars from Europe who calculated that from 2004 to 2008, EU investment in China recorded an average 10.1 percent profit ratio annually, higher than its 6 percent annual investment return ratio in Organization for Economic Cooperation and Development countries.