The two-way trade between China and the European Union (EU) is likely to reach new heights this year, a Chinese trade expert said recently. The strong complementarity between China and the EU in economic matters and the upbeat economic predictions for the EU economy in 2000 will be the basis of the increase in bilateral trade, said Li Huiying, a researcher from the Chinese Academy for Foreign Trade and Economic Cooperation.

Customs Statistics showed that the two-way trade between China and the EU rose by 13.9 percent to 55.7 billion US dollars last year. China's exports to the EU have been dominated by textiles and machinery and electronics products with low added value, while its imports from the EU are usually high-tech products and industrial materials.

The EU has become China's largest high-tech provider since it has advanced technologies in energy, environmental protection, communications, chemicals, automobiles, electronics and agriculture.

Nevertheless, the expert warned that EU's anti-dumping charges against Chinese products are still "unpleasant overtones" in bilateral economic development, which influenced about 300 millionUS dollars worth of Chinese products involving steel, color display tubes and bicycle components last year.

The negotiation between China and the EU on China's accession to the World Trade Organization will also influence trade and economic cooperation relations between the two sides, she said.