The vigorous development of China's economy has attracted more attention from Europe where economy remains sluggish. From November 25, nearly 400 Chinese and European political and economic representatives met in the German city of Hamburg to hold a three-day China-Europe forum, discussing major issues concerning China's economic development.

European economic circles generally appreciated the stable economic transformation in China. Many representatives believed that China's transition from the planned economy to the market economy has set a unique example for the world. Robert A. Mundell, winner of Nobel Prize of Economics and participant to the forum, said China's development has made contributions to the world's economy. The imports of large quantities of products by China have slowed down the sliding speed of the world's economic growth.

Representatives deemed China could continue to maintain a good momentum of growth in its economy and also would face many problems. Take for example the gap between rich and poor, and the reforms of State-run enterprises. Swedish Investor AB Chairman Jacob Wallenberg said it is normal for China to have some imbalances in the process of its economic development. Jean-Christophe Iseux, professor of the economic policy research institute of the Oxford University, said patience is needed for settling the problems. He also said the economic growth in China has been mainly brought about by investment. More technical renovations should be made to maintain the development momentum continuously, which also requires more investment.

Many representatives from European economic circles have made appreciation on the leading capability of the Chinese government. They believe the Chinese government has a pragmatic style of work with strong leading capability and determination to deepen the reforms and opening policy, which has enhanced the confidence of European business circles to invest in China.

The future of Sino-European relations has lured attention. Both representatives think Sino-European relations have been developed on a mature and solid track with a great potential. Eckhard Rohkamm, chairman of German Asia-Pacific Business Association told reporters that both sides have anti-dumping trade disputes in business, but he advocates the settlement of the disputes through negotiations and ��there are no difficulties that can not be solved''.

The fast-expanding car market in China has closely tempted car and parts firms from Europe. Dr Bernd Leissner, chairman of the Board of Management & President, Volkswagen Group China, told reporters that Volkswagen would increase investment in China for further enlargement of its production and sales here. Representatives are shocked by the rapid technical development in the car area of China. A representative from BMW Group said the quality of the cars produced in China with its investment is as same as those produced in Germany. According to experts' forecast, China will export cars made by China in 10 years. They said they are also astonished at the improvement speed of the car spare parts produced in China.

China's energy supply has also attracted concerns. Some think China's demand for crude oil has brought increase to the world's oil price while other experts are opposed to this by saying that China demand for oil accounts for only 5 percent of the world's total. Many experts put forward suggestions and ways for China to solve energy issue better.

The discussion on the renmibi issue is another major topic at the forum. The claim, making the renminbi's exchange rate against the dollar fluctuate, has been opposed by many representatives. Nobel Prize-winning economist Mundell said that a fluctuating yuan would cause many problems to China, including hampering economic growth, deterring foreign investment due to unpredictable returns, and inflation. He added firmly that it was wrong to force China to appreciate the yuan.

The forum also discussed the issue and prospect on the development of China's enterprises in Europe. At present the development of China-funded enterprises in Europe is at the initial stage. Due to the reasons including the unfamiliarity for the investment environment many invested projects have not been developed well or met with failure. Governments and economic circles of the EU countries hope more Chinese enterprises to invest in Europe. Experts appeal to Chinese enterprises to be more rational and familiar with European investment environment. At the same time, China's low cost should be combined with the advantages of the European market environment. Cao Baijuan director of China Economic Liaison Center said he does not advocate those unprepared enterprises to invest in foreign countries.

By People's Daily Online