Labor divisions, comparative advantages account for trade surplus: Wen

BEIJING—China’s trade surplus with the European Union (EU) is chiefly attributable to different roles in the international division of labor and economic comparative advantages, Chinese Premier Wen Jiabao said Wednesday when addressing the 4th China-EU Business Summit.
Wen highlighted the trade surplus issue as a main concern of both sides, pledging that the Chinese government would “continue to expand market access” in line with the prevailing rules of international trade and commerce.
China’s trade surplus with the EU stood at 91.7 billion U.S. dollars last year, according to Chinese statistics, and 162.1 billion U.S. dollars by the EU’s account, said Wen.
China runs a trade surplus with the EU and the U.S., but has a deficit with Japan, Korea, Australia and ASEAN, Wen said, adding though China enjoys a trade surplus in goods with the EU, it has a deficit in the service industry.
Wen noted that foreign-owned enterprises in China, including European companies, are “among the prime beneficiaries of China-EU trade”, as they contributed to nearly 60 percent of China’s overall export volume.
The China-EU summit, aiming to explore ideas for bilateral trade and economic cooperation, has drawn Prime Minister Jose Socrates of Portugal and European Commission President Jose Manuel Durao Barroso, as well as hundreds of Chinese and European entrepreneurs.
This year marks the tenth anniversary of the regular meeting mechanism between Chinese and EU leaders. Trade and economic cooperation between both sides has made remarkable achievements over the past decade. The EU has become the largest trading partner and export market for China, whereas China is now the EU’s second largest trading partner.—Xinhua