EU and China tend to trade ties

Brussels will give its verdict on China's much-desired market economy status by the end of June as both sides seek to ovecome a raft of trade disputes.

Chinese premier Wen Jiabao visited Brussels on Thursday to sign several deals deepening EU-Sino ties while lobbying for trade's golden ticket of 'market economy status'.

Europe has continually blocked the Chinese request, but European Commission president Romano Prodi said Brussels would decide "by the end of next month".

In response, prime minister Wen praised the "positive stance adopted by the commission" on the question.

Both sides were meeting to sign a customs co-operation agreement which they hope will accelerate the already rapid trade flows between the orient and occident.

"Trade and investment between China and the EU will be the single biggest in the world," predicted Prodi.

Both leaders also sought to play down any "adverse effects" that EU enlargement may have for Chinese traders.

"Your investment in the new Europe will multiply in a very short time," said Prodi to the Chinese delegation.

"We have maintained very clear economic ties and trade with the new member states," said Wen.

"There is no replacement for China's huge market and cheap labour," he added.

Wen was also "anxious" to solve the controversial issue of the cheap Chinese currency - much maligned in the west where it is thought to be undermining trade.

Despite further agreements signed on trade dialogue and textiles, several problems remain unsolved.

Earlier in the week EU officials complained of red-tape in the Chinese banking and constructions sectors which are sidelining Europe's businesses.

More urgently, China is thought to be halting supplies of coke which is crippling EU steel producers.

In total, five deals were signed.

Alongside the most important concerning customs standards, the EU and China also initialled protocols on textiles, trade, competition policy and the satellite navigation system Galileo.

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