Li focuses on urban potential

China and EU can benefit from city development: vice-premier

Accelerating urbanization will provide a new growth engine for China-EU economic and trade relations, Vice-Premier Li Keqiang said on Thursday.

"China is committed to transforming its growth model and views urbanization as a significant step in the modernization process," Li said.

China's commitment to boost urbanization can help the EU realize its economic recovery, the vice-premier said as the EU expands its investments in China, turning urban technology into business opportunities.

Li was speaking during the EU-China Urbanization Partnership Conference in Brussels, the last leg of his 10-day European tour.

China and the EU signed an urbanization partnership declaration on Thursday and a series of energy-related agreements.

The EU is China's top trading partner.

In 2011, Sino-EU trade hit a record of $567 billion, a year-on-year increase of 18.4 percent, according to statistics from the Ministry of Commerce.

"China expects that urbanization can provide a new platform and growth engine with the focus on energy-saving, environmental protection and new energy," Li said.

China is already well along the path of urbanization. The number of urban-dwelling residents has grown in the last three decades from 170 million to 700 million though this figure is still short of the 80 percent found in developed countries.

Urbanization will boost consumption of daily consumer goods such as food, houses, cars, and lead to an increase in public services and infrastructure projects, Li said.

"Urbanization is the most durable engine driving the Chinese economy and it provides the biggest potential for China to expand domestic consumption," which is a major part of the 12th Five-Year Plan (2011-15), Li said.

China and the EU share a long history of cooperation in urbanization and a number of European companies have invested in projects, such as the National Center for the Performing Arts in Beijing.

"China needs to learn from EU technology, ideas and management systems," Li said.

Dennis Pamlin, CEO of Swedish-based 21st Century Frontiers, a consultancy company, praised China for its green commitment.

"Sweden can be both teacher and student in building low-carbon cities in China," Pamlin said.

China meets EU

"When made-in-China meets designed-in-Europe, and when the technology from the EU meets the market from China, the outcome will be wonderful," Li said.

On Thursday, Li met the President of the European Council Herman Van Rompuy.

"We looked at EU-China strategic relations which are increasingly comprehensive. He (Li) gave me a positive assessment on the progress of our bilateral agenda," Van Rompuy said.

"Today, another two chapters in our cooperation, urbanization and energy, are unfolding," he said.

As part of his keynote speech made at the conference, Li pointed out that China is willing to learn from the EU on "setting up green and low-carbon cities", and Chinese cities are "willing to partner cities from the EU".

The two sides should focus on "cooperation in big projects, concerning infrastructure and city-related services".

From 2011 to 2015, China's spending on energy-saving and environmental protection is expected to reach 5 trillion yuan ($795 billion).

Xu Qin, Shenzhen mayor, said the city is "determined to seek green and sustainable development."

Shenzhen has a long record in cooperating with European countries and set up liaison offices in Brussels and other European cities.

"I am confident we can explore a new model of cooperation in various sectors regarding urbanization and renewable energy," Xu said.

Chen Yulu, president of Renmin University of China said Li's tour to Brussels and the agreements on urbanization and energy with Europe are "landmark events".

Chen said China and the EU have found a "converging point to tackle climate change and realize low-carbon development."