"We have now reached a new stage in boosting our business ties. We should expand the scope of cooperation, explore new cooperation models, raise level of cooperation and elevate our business relations to a new height," he said.

To achieve that end, the premier thus put forward a four-point proposal:

-- Expanding technological cooperation in various fields;

-- Strengthening cooperation in energy and environment protection;

-- Deepening cooperation in agriculture and service sector;

-- Promoting cooperation between small and medium-sized enterprises (SME).

As for technological cooperation, Wen said, "We encourage both independent innovation and introduction of technology through enhanced international cooperation. Europe, which is strong in information technology, bio-medicine, machinery, automobile, electronics, chemistry and energy sector, will find ample opportunities for further development in China."

"China and the EU should explore new areas, projects and modalities of cooperation and carry out scientific and technological cooperation in diversified forms and at various levels," Wen said.

As for energy and environment protection, Wen said China is endeavoring to build an energy-conserving and environment-friendly society and it has a growing demand for new energy and environment-friendly products.

Europe leads the world in waste treatment, energy-conserving building, environmental management and renewable energy, such as wind energy, solar energy and bio-energy, said Wen, noting that it is thus well positioned to establish itself on the China market.

"We hope to work with the EU to strengthen cooperation in energy conservation and environmental protection," he said.

As for deepening cooperation in agriculture and service sector, Wen said Europe has advanced agricultural technologies and has much to offer to China in greenhouse technology and industrial management of agriculture.

China and the EU can deepen cooperation in rural development, poverty alleviation, agricultural ecology, quality of agricultural products and animal health, he added.

"As the EU has an advanced service sector, the two sides have great potential for cooperation in this field," he added.

As for promoting cooperation between SMEs, the premier said the EU is renowned as a "kingdom" of SMEs and Chinese and European SMEs are mutually complementary in capital, technology, business model and management.

"The Chinese Government has adopted a series of policies to support SMEs and industrial parks for European SMEs have been opened in some Chinese cities," he said.

"We encourage SMEs from both sides to make full use of the existing platform and expand cooperation in technology transfer, market sharing, processing trade and human resources," he added.

"In the new century, our peoples can surely, through hard work and drawing on their wisdom, create a more splendid future. Let us join hands and work together to raise China-EU economic cooperation and trade to a new height," he concluded.

Some 500 senior business leaders attended the 2006 China-Europe business summit on Tuesday to discuss strategies for boosting the China-EU economic and technological cooperation.

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