China-Europe Geopolitics and Economics: News & Discussions

[Shotgunner51]

New Financial Holding Company Set Up to Finance China-CEE Projects
2016-11-06 10:48:26 China Daily

Premier Li Keqiang (left, second) and his Latvian counterpart
jointly launch a financial joint venture Sino-CEEF Holdings Co Ltd in Riga, Latvia, on November 5, 2016.
[Photo: gov.cn]​

A financial holding company was officially established on Saturday under the cooperative framework of China and 16 countries in Central and Eastern Europe, a crucial move to promote China-made equipment and products by helping finance joint projects in the region.

The Sino-CEEF Holding Company Limited was inaugurated by Premier Li Keqiang and his hosting Latvian counterpart Maris Kucinskis after the 5th Meeting of Heads of Government between China and CEE countries in the Latvian capital Riga.

A financial holding company is a financial institution that engages in nonbanking activities to offer customers a wide range of financial services, including the chances to purchase insurance products and invest in securities.

The company will focus on projects in connectivity and production capacity cooperation that will purchase China-made equipment and products, Premier Li said while addressing the 6th China-Central and Eastern European Countries Economic and Trade Forum.

The company was part of Li’s proposal to enhance financial cooperation in order to support China-CEE cooperation, also known as “16+1” cooperation, and provide financing for joint projects through diverse forms.

In 2013, China announced it would offer CEE countries loans of $10 billion, aiming to boost production capacity and infrastructure cooperation with the region. The company was originally an initiative proposed by Premier Li during the 4th annual China-CEEC leaders’ meeting in Suzhou, Jiangsu province, last November. Industry and Commerce Bank of China, China’s largest commercial bank, takes the lead in contributing funds to the company with participation of two other Chinese banks.

Li said a large amount of yuan and certain euros will be injected into the company, but didn’t unveil the specific amount. “China has signed memorandum of understanding with Poland and Czech to make contributions to the financial holding company and other CEE countries are welcome to join us,” Li said.​

Financial cooperation is still a shortcoming for China-CEE cooperation and it takes more time to establish an inter-bank consortium that is able to better finance joint projects, said Kucinskis.

China is ready to use more yuan and euros to promote the company’s financing capacity in the international market, meanwhile Chinese financial institutions such as the Silk Road Fund will support China-CEE projects in forms of equity and bonds, Li vowed.

More than 15 cooperative agreements were signed between China and CEE countries on Saturday after the fifth annual leaders meeting. Premier Li is scheduled to fly to St Petersburg on Sunday to visit Russia and attend the 21st Regular Meeting between Chinese and Russian Prime Ministers.


http://english.cri.cn/12394/2016/11/06/4081s944271.htm

 

[TaiShang]

Chinese premier raises proposals for "16+1" pragmatic cooperation
Source: Xinhua | 2016-11-05

Chinese Premier Li Keqiang addresses the Sixth China and Central and Eastern European (CEE) Countries Economic and Trade Forum in Riga, Latvia, Nov. 5, 2016. (Xinhua/Xie Huanchi)

RIGA, Nov. 5 (Xinhua) -- Chinese Premier Li Keqiang on Saturday put forth five proposals for expanding pragmatic cooperation between China and Central and Eastern European countries (CEEC), in light of the slower-than-expected world economic recovery and lackluster global trade.

In a keynote speech delivered to the Sixth China-CEEC Economic and Trade Forum here, Li proposed measures including promoting trade and connectivity, stepping up production capacity and tourism cooperation, and exploring innovative ways of financial cooperation.

The Chinese premier arrived in Latvia Friday morning, continuing an eight-day Eurasia tour that has already taken him to Kyrgyzstan and Kazakhstan and will conclude in Russia.

He also attended a meeting here between the heads of government of China and 16 CEE countries, also known as the "16+1" summit.

To expand two-way trade, an investment-friendly environment should be created, while customs and quarantine coordination mechanisms should be established and improved, Li said.

The premier also called for development of cross-border e-commerce, promising China will import from CEE countries quality agricultural and industrial products while urging easier access of Chinese products and businesses to the CEE market.

For greater connectivity, China encourages capable Chinese enterprises to participate in infrastructure construction in CEE countries through various forms, Li said, adding that China supports the early completion of the Hungary-Serbia railway and the China-Europe Land-Sea Express Line, and backs the construction of Asia-Europe transportation channels, increasing the number of trains running between China and Europe, and setting up more logistic centers in CEE countries.

To promote production capacity cooperation, Li pledged China's willingness to build industrial and technological parks together with CEE nations.

On financial cooperation, he noted that a 16+1 financial holding company will be established, which mainly supports the purchase of Chinese equipment and products in connectivity and production capacity cooperation projects under the 16+1 framework.

Li also proposed that all sides should promote tourism cooperation by easing visa policies, simplifying border entry procedures and launching more direct flights.

The Chinese premier hopes that the number of tourists between China and CEE countries will double in five years.

 

[TaiShang]

Interview: Riga "16+1" summit continues win-win cooperation between Serbia and China: expert

(Xinhua) 09:40, November 06, 2016

Chinese Premier Li Keqiang (R) meets with Serbian Prime Minister Aleksandar Vucic in Riga, capital of Latvia, Nov. 5, 2016. (Xinhua/Liu Weibin)

BELGRADE, Nov. 5 -- A meeting between the heads of the governments of China and 16 central and eastern European (CEE) countries, or the "16+1" summit, will further strengthen ties among China, Serbia and the rest of CEE countries, an expert said on Saturday.

Aleksandra Joksimovic, head of the Belgrade-based NGO Centre for Foreign Policy, said CEE countries will prioritize infrastructure construction and privatization of public companies while seeking cooperation with China.

The expert believed "China is strategically oriented towards the further promotion of the New Silk Road" at the summit in Riga, capital of Latvia.

"China sees Central and Eastern Europe as a promising market where the country can offer its products," she said.

Joksimovic says joint projects in the past have shown deals sealed at "16+1" summits are serious.

Citing Serbia-China cooperation as an example, Joksimovic said Chinese company HeSteel's acquisition of Serbian steel mill in Smederevo was conducive to local economy.

Acquisition and revitalization of troubled public companies is important to Serbia because it solves problems and allows the country to further its economic development, according to the expert.

"China is one of the world's biggest steel manufacturers and it wishes to expand its industry to Europe. This has strategic importance for us because it solves some of problems hindering our economic development and stabilization," she continued.

Besides the steel mill project, the two countries now have moved forward their cooperation towards the construction of a high speed railway linking Belgrade to Budapest.

Joksimovic said infrastructure projects were of key importance in Serbia-China cooperation.

"As an important country in the Balkans, Serbia has an urgent need for infrastructure construction and connection with other countries of the region in order to become a part of the transit route between the East and the West," she said.

Talking about the Riga Summit, Joksimovic said it will continue the good momentum of developing bilateral ties between Serbia and China on the basis of the achievements during previous summits.

Cooperation with China is of strategic importance for Serbia, who needs to seize the opportunities that China provides, she said.

She also believes China is preparing for bigger investments, as proved by the expected arrival of Bank of China in Serbia.

"When serious investments are planned, banks from the investor are established," she said.

 

[Kyle Sun]

We come with our sincerity.
And we persuade the others of of our sincerity with money,cooperation which will benefit each other.

 

[ahojunk]

Latvian PM lauds promising prospects for relations with China
2016-11-04 13:48 | Xinhua | Editor: Xu Shanshan

Latvia's relations with China are at their best time in history, and the Baltic nation seeks to further develop such vigorous relations with the world's second largest economy, Latvian Prime Minister Maris Kucinskis has said.

Kucinskis made the remarks in a recent interview with Chinese news media ahead of Chinese Premier Li Keqiang's visit to Latvia, underlining the prospects for an upgrade in bilateral ties.

During Li's three-day stay in Latvia, which starts on Friday, he is also scheduled to meet with leaders from 16 Central and Eastern European (CEE) countries.

Speaking on the current state of the Latvia-China relations, Kucinskis said regular political dialogues and frequent exchanges of high-level visits between the two countries have generated strong momentum for bilateral cooperation.

"The economic cooperation between the two countries signals optimism for further development, but Latvia still needs to increase exports to China and attract more Chinese investment," the prime minister said.

China is the largest trading partner to Latvia in east Asia and the two countries have tremendous potential for cooperation in trade, transit transport, logistics, education, culture and tourism, according to Kucinskis.

"Latvia has an ideal geographical location, with three ice-free ports, which is a prominent advantage for cooperation in logistics and transport," he said. "Latvia is also one of the leading countries in the world on information technology, with very good signal coverage and network speed. For Chinese companies specializing in information technology, Latvia is a gateway to the European market."

In electronic commerce, for example, Latvia can provide China with an online trading platform, as well as online services in transport, logistics and finance, Kucinskis said.

The prime minister also hailed people-to-people and cultural exchanges between Latvia and China.

"The Latvian people are getting to know China. It is no longer a remote, mysterious and strange country to us. We are seeing more and more objective news stories on China in Latvian media, and the number of Chinese tourists to Latvia is also increasing," he said.

Kucinskis said he looks forward to his Chinese counterpart's visit and hoped that it would boost the two countries' cooperation and dialogues in economy, education, science and culture, calling it a milestone of great significance to the entire CEE region.

On Li's planned meeting with 16 CEE leaders, Kucinskis stressed that Latvia was honored to host the fifth China-CEE summit and coordinate the "16+1" cooperation in logistics.

"The fact that this is already the fifth edition of the '16+1' summit fully demonstrates the great potential of this mechanism in boosting economic growth," he said.

Europe and China can get even closer to each other by enhancing links between the European Union (EU)'s Trans-European Transport Network policy and the China-proposed Belt and Road Initiative, which is crucial for regional economic development, he added.

The Belt and Road Initiative, which comprises the Silk Road Economic Belt and the 21st Century Maritime Silk Road, was brought up by Chinese President Xi Jinping in 2013, with the aim of building a trade and infrastructure network connecting Asia with Europe and Africa along the ancient Silk Road routes.

"As the world is facing a slowdown in economic growth -- only 3.2 percent expected for this year -- we should look for more opportunities for cooperation under existing international frameworks, such as the China-CEE framework," Kucinskis said. "Our goal is to leverage our strengths as CEE countries to boost cooperation with China."

Moreover, he believed that the "16+1" platform would continue to expand and play a more significant role in the future, as it would also have an impact on China-EU cooperation.

Latvia wants to get involved in the Belt and Road Initiative, and is looking to sign a memorandum of understanding with China on collaboration based on the initiative during the "16+1" summit, said Kucinskis.

He revealed that the document covered a wide range of sectors including transport, logistics, infrastructure, trade, finance, technology and humanity.

He said that within the Belt and Road Initiative framework, Latvia, as an important transit point, could provide transport and logistics services via its railways, harbors and airports to ship Chinese goods to Scandinavian countries, and vice-versa, a project that the Latvian government is very much interested in.

Kucinskis spoke highly of a China-Europe railway freight route that was recently put into trial operation, linking Riga and Yiwu -- a vibrant manufacturing hub in east China.

"The first cargo train from China is expected to arrive at Riga Central Station on Nov. 5," he said. "This is of historical significance to not only the rail industry of Latvia, but also the relationship between the two countries."

 

[ahojunk]

China, Latvia agree to expand cooperation
2016-11-05 09:25 | Xinhua | Editor: Mo Hong'e

Chinese Premier Li Keqiang (L) meets with Latvian President Raimonds Vejonis
in Riga, Latvia, Nov. 4, 2016. (Photo: Xinhua/Zhang Duo)​

Chinese Premier Li Keqiang met in Riga on Friday with Latvia's president and parliament speaker respectively, pledging to further promote bilateral cooperation in various areas.

Li is currently in the Baltic country for an official visit and a leaders' meeting on Saturday within what is known as the 16+1 framework, which groups China and 16 Central and Eastern European (CEE) nations.

While meeting with Latvian President Raimonds Vejonis, Li described Latvia as a good friend and partner in the Baltic region, and expressed the hope that the two sides will take the 25th anniversary of their diplomatic ties as an opportunity to further deepen bilateral cooperation on the basis of mutual respect and equality, so as to benefit both peoples.

China, he added, is willing to align its development strategies with Latvia's, deepen bilateral cooperation in connectivity, trade and infrastructure construction, and enhance people-to-people exchanges in areas like tourism and education.

The Chinese premier also called for more cooperation within the 16+1 framework, so as to bring common development to both countries as well as other countries in the region.

Vejonis said that China is an important cooperation partner for his country, and that bilateral cooperation still harbors great potential on top of the already fruitful achievements.

Latvia looks forward to enhancing cooperation with China in transportation, innovation, logistics and agriculture, and welcomes more Chinese investment, he said, adding that his country expects the upcoming 16+1 meeting to be a success.

During the meeting with Latvian Parliament Speaker Inara Murniece, Li urged concerted efforts to promote exchanges between the two countries' legislatures and political parties and enhance people-to-people exchanges through cultural and sports activities.

He expressed appreciation for Latvia's positive role in China-CEE cooperation, saying China will work with all sides concerned to make good use of the 16+1 mechanism and tap cooperation potential for mutual benefits and win-win results.

Murniece said the Latvian parliament will expand exchanges with the Chinese side to contribute to bilateral political, economic and cultural relations as well as 16+1 cooperation.

Li's trip marks the first time for a Chinese premier to visit Latvia since it gained independence from the Soviet Union in 1991.

The Baltic country is the third leg of his ongoing eight-day Eurasia tour, which has already taken him to Kyrgyzstan and Kazakhstan and will conclude in Russia.

 

[ahojunk]

Chinese premier urges strategic view on China-Czech ties
2016-11-06 11:11 | Xinhua | Editor: Yao Lan

China and Czech should view each other from a strategic and long-term point of view to ensure the smooth development of bilateral ties and pragmatic cooperation, Chinese Premier Li Keqiang said Saturday.

Li made the remarks while meeting with Czech Prime Minister Bohuslav Sobotka on the sidelines of a meeting between the heads of the governments of China and 16 Central and Eastern European (CEE) countries, also known as the "16+1" summit.

Li also urged the Czech side to facilitate the setting up of the branches of Chinese financial institutes there.

Sobotka said Czech attaches high importance to its relations with China and respects China's core interests and major concerns.

He expected the two nations to further expand reciprocal investment and promised to support and facilitate Chinese investment in his country.

 

[ahojunk]

Premier Li attends symposium on Sinology research, pedagogy
2016-11-07 08:28 | Xinhua | Editor:Li Yan

Chinese Premier Li Keqiang talks with sinologists attending a symposium on Sinology research and Chinese language pedagogy in Central and Eastern European (CEE) countries, in Riga, Latvia, Nov. 5, 2016. (Photo/Xinhua)

 

[Place Of Space]

Thanks for sharing the news...

 

[GeraltofRivia]

Another great development! We work hard to bring prosperity to these regions.

 

[ahojunk]

Chinese premier arrives in Kazakhstan for official visit
2016-11-03 21:58 | Xinhua | Editor: Wang Fan


Chinese Premier Li Keqiang arrived in Astana Thursday for an official visit to Kazakhstan.

During his stay in the Central Asian state, Li and his Kazakh counterpart, Bakytzhan Sagintayev, will hold the third regular meeting between the two countries' prime ministers.

The visit will focus on cooperation in production capacity, said Chinese Assistant Foreign Minister Li Huilai at a press briefing in Beijing earlier this week, adding that it will also help cement the two countries' coordination and mutual support on international issues.

This is the Chinese premier's second visit to Kazakhstan in about two years, which demonstrates the high degree of relations and strategic mutual trust between the two neighbors, said Li, the assistant minister.

Kazakhstan is the second leg of Li's eight-day Eurasia tour, which started with Kyrgyzstan and will also take him to Latvia and Russia.

 

[ahojunk]

China-EU economic ties go ahead despite headwinds
2017-01-02 08:39 | Xinhua | Editor: Mo Hong'e

China and the European Union (EU) have gone through a bittersweet year in economy in 2016, stumbling over issues, such as the anti-dumping regime and "analogue country," while continuously advancing in trade, investment and strategic cooperation.

PROTECTIONISM OVERSHADOWS TIES

Growing protectionism in Europe has resulted in mounting EU anti-dumping and anti-subsidy investigations against Chinese products.

Brussels' anxiety accumulated, as the continent has for years been clouded by sluggish economic growth, a lack of sufficient investment, a disappointing inflation record and a double-digit jobless rate in the wake of the debt crisis and the global financial crisis.

Facing the chronic problems, some EU countries started to vent their disappointment on China, a country which managed to maintain a medium-to-high economic growth amid an average sluggish global growth.

They claimed Chinese imports would hit the bloc's manufacturing industry, especially traditional and energy-intensive sectors, as well as exacerbate unemployment across the continent.

Though a lack of evidence left the argument untenable, the bias affected Brussels' policy making.

The European Commission imposed anti-dumping duties on Chinese steel products in October, attributing its steel sector's difficulties to China's overcapacity.

The decision came just about two months before a deadline required by the World Trade Organization (WTO) rules which demand that the EU quit the "analogue country" method in its anti-dumping investigations on China.

The move forced Beijing to launch dispute settlement procedures at the WTO.

The EU decisions threatened to overshadow the whole picture of bilateral trade ties, experts cautioned.

Anti-dumping cases accounted for less than 2 percent of the total EU-China trade and it was not worthy for Brussels to put bilateral trade ties on edge, Pierre Defraigne, executive director of the Brussels-based think tank the Madariaga-College of Europe Foundation, told Xinhua.

OBSTACLES TO CHINESE INVESTMENT

The impact of the growing protectionism was not confined to imports from China, but was spilling over to investment.

Enthusiastic Chinese investors were confused: Europe has been complaining about a lack of investment, but when they brought investment to Europe, they met a cold shoulder.

Skeptics, politicians or lobbyists cited the "threat of Chinese capital" as a major concern and groundlessly accused Chinese investment of harming EU interests, such as national security and intellectual property.

Amid rancorous voices, the German government in October announced a restart of investigation on the sale of the German semi-conductor maker Aixtron to a Chinese company, and to withdraw the clearance certificate it issued in September which confirmed the Chinese buyer's credibility, due to "security concerns."

European countries' worry over the Chinese investment coincides with a protectionist trend and a surge in populism on the continent, said Hannes Dekeyser, an expert with the European Institute for Asian Studies.

Amid the surge of protectionism in global trade and a gloomy outlook of an EU-U.S. free trade deal, Europe's foreign trade policy should focus more on Eurasia, especially China, Defraigne said.

TRADE INCREASES AMID HEADWINDS

Despite the headwinds in China-EU economic ties, bilateral trade managed to reach a new high in 2016, overcoming global trade downturn affected by sluggish demand and weak growth.

Data from Chinese customs show that bilateral trade value reached 2.94 trillion yuan (423.34 billion U.S. dollars) in the first 10 months.

On a daily basis, trade in goods between the EU and China is worth well over 1.5 billion euros (1.58 billion U.S. dollars), according to the EU data.

In 2016, the EU stands as China's biggest trading partner, while China is the EU's second largest trading partner after the United States.

China and the EU have a solid foundation of cooperation and the two sides have enhanced cooperation on connectivity, investment plans, and other strategies including "Made in China 2025" and Germany's "Industry 4.0," said Wang Yiwei, director of the Center for European Studies at China's Renmin University.

And the connection between the two sides is deepening with the progress of the China-proposed Belt and Road Initiative.

The cooperation between China and 16 Central and Eastern European Countries has become a highlight under the Belt and Road Initiative, said Wang.

Wang cited the fact that 25 Chinese cities have launched China-Europe express lines, which tremendously promoted the links between the two continents and contributed to the infrastructure construction and industrial development in the region.

Experts said it's time for European countries to downplay their baseless worries over China, but to brace for pragmatic cooperation in the future.

 

[ahojunk]

China, Switzerland have potential in cooperation
2017-01-13 17:33 | Xinhua | Editor: Wang Fan

Chinese President Xi Jinping's upcoming visit to Switzerland is expected to deepen China-Switzerland partnership, a model of peaceful co-existence and win-win cooperation between big and small countries with different social systems and at different development phases.

Relations with Switzerland have always been a priority in China's diplomacy with European countries.

Switzerland was one of the first Western countries to establish formal ties with China and the first country to set up an industrial joint venture in China in 1980.

Switzerland was among the first European countries to recognize China's market economy status, to ink a free trade agreement with China, and to apply for membership of the Asian Infrastructure Investment Bank, a China-initiated multilateral bank.

Over recent years, China-Switzerland relations have yielded fruitful achievements in various aspects.

Political mutual trust has reached a new high. Frequent high-level exchanges have facilitated smooth communication on a series of important issues, and more than 20 governmental dialogue and consultation systems function well, helping enhance coordination and cooperation at different levels between the two sides.

The two countries have conducted practical and effective economic and trade cooperation. Switzerland is a major trade partner of China in Europe, and China is the European country's largest trade partner in Asia.

Since the inception of the China-Switzerland free trade agreement (FTA) in 2014, bilateral trade and mutual investment have flourished. Against the sluggishness of the global economy, bilateral trade reached 44.27 billion U.S. dollars in 2015.

Financial cooperation has made progress. The Chinese and Swiss central banks signed a currency swap agreement worth 24 billion dollars in 2014, which was intended to provide liquidity support to economic and trade exchanges between the two countries. In 2016, the China Construction Bank, a leading Chinese state-owned lender, set up a branch in Zurich, marking the official launch of the renminbi clearing business in the world's largest offshore financial hub.

Since China has pursued sweeping and painstaking reforms at home to build an innovation-based and environment-friendly economy, there is a great potential for bilateral cooperation in innovation, environmental protection, tourism and people-to-people exchanges in the coming years.

Switzerland's ability to innovate is very attractive to China. According to Global Innovation Index 2016, Switzerland ranked for sixth consecutive years the world's most innovative country.

Meanwhile, Switzerland serves as a model in combining economic development and environmental protection. Over the past years, the two countries have conducted cooperation in the cleanup of the Dianchi Lake in Yunnan province and the protection of the Ancient Tea Horse Road.

During then-president Johann Schneider-Ammann's state visit to China in 2016, the two sides pinned high hopes on cooperation in air pollution control, low-carbon city development and green consumption, as well as in energy efficiency and renewable energy.

In addition, the two countries would deepen cooperation in tourism, higher education, vocational training, among others.

.

 

[ahojunk]

Switzerland by the numbers
2017-01-11 11:02 | Globaltimes.cn | Editor:Li Yan

Switzerland has invested over $6 billion in China, covering machinery and pharmaceuticals.


.

 

[TaiShang]

China-EU economic ties go ahead despite headwinds
2017-01-02 08:39 | Xinhua | Editor: Mo Hong'e

China and the European Union (EU) have gone through a bittersweet year in economy in 2016, stumbling over issues, such as the anti-dumping regime and "analogue country," while continuously advancing in trade, investment and strategic cooperation.

PROTECTIONISM OVERSHADOWS TIES

Growing protectionism in Europe has resulted in mounting EU anti-dumping and anti-subsidy investigations against Chinese products.

Brussels' anxiety accumulated, as the continent has for years been clouded by sluggish economic growth, a lack of sufficient investment, a disappointing inflation record and a double-digit jobless rate in the wake of the debt crisis and the global financial crisis.

Facing the chronic problems, some EU countries started to vent their disappointment on China, a country which managed to maintain a medium-to-high economic growth amid an average sluggish global growth.

They claimed Chinese imports would hit the bloc's manufacturing industry, especially traditional and energy-intensive sectors, as well as exacerbate unemployment across the continent.

Though a lack of evidence left the argument untenable, the bias affected Brussels' policy making.

The European Commission imposed anti-dumping duties on Chinese steel products in October, attributing its steel sector's difficulties to China's overcapacity.

The decision came just about two months before a deadline required by the World Trade Organization (WTO) rules which demand that the EU quit the "analogue country" method in its anti-dumping investigations on China.

The move forced Beijing to launch dispute settlement procedures at the WTO.

The EU decisions threatened to overshadow the whole picture of bilateral trade ties, experts cautioned.

Anti-dumping cases accounted for less than 2 percent of the total EU-China trade and it was not worthy for Brussels to put bilateral trade ties on edge, Pierre Defraigne, executive director of the Brussels-based think tank the Madariaga-College of Europe Foundation, told Xinhua.

OBSTACLES TO CHINESE INVESTMENT

The impact of the growing protectionism was not confined to imports from China, but was spilling over to investment.

Enthusiastic Chinese investors were confused: Europe has been complaining about a lack of investment, but when they brought investment to Europe, they met a cold shoulder.

Skeptics, politicians or lobbyists cited the "threat of Chinese capital" as a major concern and groundlessly accused Chinese investment of harming EU interests, such as national security and intellectual property.

Amid rancorous voices, the German government in October announced a restart of investigation on the sale of the German semi-conductor maker Aixtron to a Chinese company, and to withdraw the clearance certificate it issued in September which confirmed the Chinese buyer's credibility, due to "security concerns."

European countries' worry over the Chinese investment coincides with a protectionist trend and a surge in populism on the continent, said Hannes Dekeyser, an expert with the European Institute for Asian Studies.

Amid the surge of protectionism in global trade and a gloomy outlook of an EU-U.S. free trade deal, Europe's foreign trade policy should focus more on Eurasia, especially China, Defraigne said.

TRADE INCREASES AMID HEADWINDS

Despite the headwinds in China-EU economic ties, bilateral trade managed to reach a new high in 2016, overcoming global trade downturn affected by sluggish demand and weak growth.

Data from Chinese customs show that bilateral trade value reached 2.94 trillion yuan (423.34 billion U.S. dollars) in the first 10 months.

On a daily basis, trade in goods between the EU and China is worth well over 1.5 billion euros (1.58 billion U.S. dollars), according to the EU data.

In 2016, the EU stands as China's biggest trading partner, while China is the EU's second largest trading partner after the United States.

China and the EU have a solid foundation of cooperation and the two sides have enhanced cooperation on connectivity, investment plans, and other strategies including "Made in China 2025" and Germany's "Industry 4.0," said Wang Yiwei, director of the Center for European Studies at China's Renmin University.

And the connection between the two sides is deepening with the progress of the China-proposed Belt and Road Initiative.

The cooperation between China and 16 Central and Eastern European Countries has become a highlight under the Belt and Road Initiative, said Wang.

Wang cited the fact that 25 Chinese cities have launched China-Europe express lines, which tremendously promoted the links between the two continents and contributed to the infrastructure construction and industrial development in the region.

Experts said it's time for European countries to downplay their baseless worries over China, but to brace for pragmatic cooperation in the future.

Europe's lack of deep cooperation on the economic front with China is an extension of its incomplete sovereignty under the US hegemony. The Aixtron deal is a case in point. If North Europe becomes less cooperative and resists not to give China ME status, China may be forced to deal more closely with Eastern Europe and divide and weaken the EU from inside.

China has the capability to do so.