EU trade chief calls for new China investment deal

(BRUSSELS) - Europe's trade commissioner called on Thursday for a sweeping new investment agreement between the EU and China that would open markets in two of the world's biggest economies.

Karel De Gucht said there was a "growing perception amongst Chinese investors and political leaders that these days they are less welcome in Europe than in the past."

The Belgian official said the deal Brussels wants should consolidate existing bilateral investment agreements with 25 European Union member states into a single treaty that bound Beijing to the bloc.

In a speech to specialists, he said this should involve "improving the treatment of (EU) investors and their assets -- including key technologies and intellectual property rights."

De Gucht said China's growth in importance as a global investor meant talks had to deliver a level playing field so that "firms compete on the same terms, regardless of their ownership structure or origin, both in Europe and in China."

From less than one billion euros ($1.26 billion) between 2003 and 2008, Chinese investment in Europe reached more than seven billion euros last year.

The deal would also set conditions covering Chinese responsibilities to meet social, labour and environmental standards, so Europe would not have to "lower standards just to attract investment."

Ultimately, De Gucht also said he wanted to "deliver new liberalisation of the conditions for accessing the (Chinese) investment market."

De Gucht met Chinese Commerce Minister Chen Deming at the end of May to discuss heightened concern over Chinese state support for low-cost, hi-tech manufacturers.