China, EU reach agreement in wine dispute

"All of this proved, again, that dialogue and consultation under World Trade Organization rules are the best way to settle disputes and that China and the EU have the wit and capability" do so, Gao said.

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EU wine exports to China reached 257 million liters in 2012 and were worth nearly $1 billion, more than half coming from France.

Earlier this month, China and the EU resolved a dispute on polysilicon products through consultation and negotiation. European exports of polysilicon will not be sold below a specific minimum price in China, while China agreed to refrain from anti-dumping and anti-subsidy duties on imports.

Cui Hongjian, director of European studies at the China Institute of International Studies, said recent trade settlements between China and the EU were likely to build a harmonious atmosphere for Xi's visit to Europe.

"Both sides value the bilateral economic ties very much," Cui said. "Trade friction, if not properly resolved, will have a much bigger impact on each other's industries than decades ago. As China and the EU industries are now closely connected, industrial coordination should be included into the moves of settling trade disputes, which will enhance the mechanism of settling trade friction."

The EU is China's largest trade partner with bilateral trade of $559.06 billion in 2013, up 2.1 percent year-on-year. The two sides are also negotiating a bilateral investment treaty.

The commerce minister said this year marks a new decade of the China-EU Comprehensive Strategic Partnership and "we have reasons to believe that bilateral economic cooperation will develop faster and better".

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