China lauds growing ties with EU

BEIJING, May 19 (UPI) -- China says its partnership with the European Union, which has become its largest trading partner, is at a new historical threshold.

A lengthy article in the official Xinhua news agency ahead of Wednesday's start of the 11th China-EU summit in Prague said the meeting pointed to the desire of both sides to consolidate their ties and "indicates that the China-EU comprehensive strategic partnership is at a new historical threshold."

The meeting comes at a time when the Communist giant, with its economic clout, seeks to play a more dominant role in world finance and develop EU for growth of its exports even as the U.S. dollar faces increasing challenge to its role as the leading world currency.

"In the face of the ongoing global financial crisis, the Prague China-EU summit is expected to push forward bilateral trade and economic cooperation which remains a key element of the China-EU comprehensive strategic partnership," Xinhua said.

Bilateral trade topped $400 billion last year and Xinhua said while EU remains China's biggest trade partner and largest export market, it has also become China's largest source of imports.

"Sound cooperation between China and Europe, including participation in each other's stimulus plans, will help both sides fight trade and investment protectionism, boost confidence, and promote early recovery of the global economy," the report said.

Separately, Xinhua quoted Benita Ferrero-Waldner, European commissioner for external relations, as telling a EU-China seminar in Brussels the summit will be "a milestone in our common journey" for a "new global order, ways to tackle the global recession, promote peace and save the planet."