Want China Times, Staff Reporter 2014-03-09
Li Keqiang announces the opening of the BIT talks, Nov. 21, 2013. (Photo/CNS) |
China's
premier, Li Keqiang, delivered his work report on the first day of the annual
meeting of the National People's Congress on Wednesday, saying the government
plans to step up negotiations regarding the bilateral investment treaty (BIT)
with the European Union.
Li's words
also suggest the government is to encourage domestic firms to invest in Europe.
Talks on
the China-Europe BIT were officially initiated on Nov. 21, 2013.
According
to the Chinese-language Economic Observer Online, China's investment in the EU
has now exceeded the EU's investment in China. Trade volume between the two
sides has surpassed US$540 billion and the EU has been China's largest trade
partner for nine consecutive years, while China has been the EU's 10th biggest
trading partner for a decade.
The EU has
also been the top region for international acquisitions by Chinese companies
for two straight years.
China's
president, Xi Jinping, is set to visit Brussels at the end of March this year.
Trade delegations have been led by China's premier in the past rather than the
president, so the trip this year is viewed as an attempt to strengthen ties in
the political arena, said Wang Yigui, a vice director at the EU research center
of Renmin University of China in Beijing.
If the BIT
is finalized, a free trade agreement could be something that the two sides
could consider next, Wang suggested.
In his work
report to China's parliament, Li also said the financial services sector may be
liberalized gradually.
Wang said
liberalization may affect the domestic finance sector as major European
insurance firms would be able to tap the Chinese market in addition to the
current competition from their US counterparts.
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