China has signed a five-year trade agreement with the European Common Market (EEC). The agreement?
China has signed a five-year trade agreement with the European Common Market (EEC). The agreement was signed in Brussels on Monday (3 April), and it signalled China's formal recognition of the EEC as a trading partner. The five-year agreement was only the second accord between a communist state and the nine-nation community.
SYNOPSIS: The Chinese delegation was headed by Foreign Trade Minister Li Chiang, and before the signing ceremony he met EEC President, Roy Jenkins.
Yugoslavia is the only other Communist state with a trading agreement with the EEC. The Soviet Union and its East European allies have not given formal trade recognition to the community.
In a speech before the signing, Mr. Li emphasised the political significance of the new agreement, and indirectly referred to a need for a common position against the Soviet Union. The agreement commits China to give favourable consideration to EEC exports. It also requires both sides to do what they can to keep their trade reasonably balanced, a clause insisted on by the Chinese, who until last year had large trade deficits with the nine. Mr. Li said that provided both sides abided by the spirit of the agreement there were broad prospects for economic and trade relations ahead.