Visiting Chinese Premier Wen Jiabao made a five-point proposal for expanding Sino-EU economic ties when addressing the China-EU investment and Trade Forum in Brussels on Thursday.

The premier called on both sides to tap their trade potential, step up cooperation in the hi-tech area, promote cooperation among small- and medium-sized businesses, remove outdated barriers and obstacles and build and improve the consultation and dialogue mechanism.

First, to make a bigger "cake," both sides should work hard in tapping their trade potential, expanding the trade scale and increasing the trade volume, according to the proposal.

"At last year's China-EU Summit in Beijing, I proposed that our trade reach US$200 billion by the year 2013," noted Wen. "Now this goal looks a bit too conservative, for our trade this year may likely top US$150 billion."

It may not be a bad idea to have some leeway nonetheless, he added jokingly.

He also asked the two sides to make vigorous efforts to push for R&D cooperation in the hi-tech area, with a view to developing internationally competitive products and opening up new markets.

The two sides should help small- and medium-sized businesses become a vital player in the Sino-EU economic partnership by putting in place a necessary cooperation platform, providing information, financing and other needed services, and giving full play to the role of intermediary agencies, noted the premier.

Vowing to continue to faithfully honor China's WTO commitments,Wen urged the European Union to ease its restrictions on hi-tech exports to China and lift its import bans that are inconsistent with WTO rules.

"The existing mechanisms, the Joint Committee on Economic and Trade Cooperation included, should be given full play, with a view to properly addressing the problems, differences and other concerns of the two sides through friendly consultations," said the premier.

"Prior to the adoption of major measures that may bear on the interests of the other side, greater attention should be paid to keeping the partner informed and consulted so as to avoid complicating the problems. In addressing economic and trade issues at the multilateral level, consultation and coordination should be strengthened," he concluded.

China and the European Union have become each other's second largest trading partner in recent years, with their trade growing by 13.5 percent to 134.8 billion euros (US$160.4 billion) in 2003.

(Xinhua News Agency May 6, 2004)