Here are four articles about Premier Wen’s "trip of Confidence" to Europe.

China Daily reports that China and Switzerland agree to begin feasibility study on FTZ.

(emphasis mine) [my comment]

China, Switzerland agree to begin feasibility study on FTZ
(Xinhua)
Updated: 2009-01-28 08:51

BERN - China and Switzerland decided Tuesday to begin a joint feasibility study in the second half of this year on creating a bilateral free trade zone in preparation for formally launching negotiations on the issue. [Switzerland is a slow moving country, so something like this is a bigger deal than it sounds]

During talks in the Swiss capital, visiting Chinese Premier Wen Jiabao and President of the Swiss Confederation Hans-Rudolf Merz exchanged views on the current international financial and economic situation and briefed each other on the policies and measures China and Switzerland have taken regarding the international financial crisis.

The two leaders agreed that it is an urgent task for the two countries to work more closely together to tide over the difficulties against the backdrop of the financial crisis.

The feasibility study on a free trade zone is one of the measures the two nations agreed to take in order to jointly tackle the challenges brought about by the international financial crisis.

Other measures include deepening financial cooperation, expanding trade and investment, opposing trade protectionism, and promoting reform of the international financial system.

China and Switzerland will also boost joint work in technology, energy, environmental protection, as well as in the medical and cultural sectors.

China Daily reports that China and Germany to jointly fight slowdown.

China, Germany to jointly fight slowdown
(China Daily/Agencies)
Updated: 2009-01-30 07:30

BERLIN: China and Germany Thursday vowed to have closer economic cooperation and fight trade protectionism to overcome the global financial crisis.

A statement released after Premier Wen Jiabao met with German Chancellor Angela Merkel in Berlin said the two countries would "explore new fields of cooperation and add fresh stimulus to the economies".

Chinese Premier Wen Jiabao (R) and German Chancellor Angela Merkel pose for media after a news conference in Berlin January 29, 2009. [Agencies]

The areas earmarked for stronger cooperation are energy, the environment, biochemical, infrastructure, transport, logistics, financial services and creative industries.

"We can intensify our cooperation and deal with the (financial) crisis together," Wen said. "We welcome foreign firms to take part in infrastructure and in projects to improve technical standards."

Trade topped the agenda of the two exporting powerhouses, with both vowing to push forward the Doha round of WTO talks.

Wen said China "is not seeking a trade surplus" and is interested in buying German products and technology.

"China and Germany have similar interests because both depend strongly on exports and believe protectionism is not the answer (to the financial crisis)," Merkel said.

The two countries were determined to "maintain trade relations at their current level and, if possible, increase them", she said.

The two countries signed six agreements, including one on the transfer of core parts for China's maglev railway projects.

The German economy, Europe's biggest, went into recession in last year's third quarter. China's economic growth slowed in the fourth quarter to a seven-year low of 6.8 percent year-on-year.

Germany was the second of Wen's stops on his Jan 27-Feb 2 European tour. Before that he was in Davos, Switzerland, to attend the World Economic Forum (WEF).

The premier will also visit the European Union headquarters in Brussels, and travel to Spain and Britain.

Confidence above all

In his speech at the WEF on Wednesday, Wen said he was optimistic about China's economy growing at a fast and steady pace.

Calling for confidence, cooperation and responsibility in overcoming the financial crisis, Wen said: "China's economy is in good shape on the whole. We managed to maintain steady and relatively fast growth in 2008 despite two massive natural disasters."

The financial crisis is a challenge for the entire world, and the pressing task of the international community is "to take further steps to restore market confidence as soon as possible".

He urged the international community to set up a new global economic system. His proposals include:

Better global economic cooperation and a more intensive and sound multilateral trading regime;

Stronger global cooperation in financial supervision and regulation to guard against the build-up and spread of financial risks;

Protection of developing countries' interests; and

Tackling global challenges, such as climate change, environmental degradation, natural disasters and food security.

China View reports that China and EU pledge closer cooperation in tackling financial crisis.

China, EU pledge closer cooperation in tackling financial crisis
www.chinaview.cn 2009-01-31 09:08:44

BRUSSELS, Jan. 30 (Xinhua) -- China and the European Union (EU) on Friday agreed to strengthen practical cooperation in jointly addressing the current global financial crisis.

The agreement came after talks between visiting Chinese Premier Wen Jiabao, who arrived here on Thursday for a visit to the EU headquarters, and European Commission President Jose Manuel Barroso.

Wen told Barroso that China, in its foreign relations, lays a strategic emphasis on developing the comprehensive strategic partnership with the EU, and promoting cooperation to jointly tide over the current difficulties should be a key task for both sides under current circumstances.

To this end, both sides need to trust and respect each other, treat each other equally and aim for mutual benefit, Wen said. In particular, China and the EU should address each other's major concerns and try to stave off disputes, he added.

Barroso said the EU and China have seen close, deep and fruitful relations, and, as two major forces in the world, many global issues cannot be solved without EU-China cooperation.

The EU is ready to promote dialogue and cooperation with China to elevate the comprehensive strategic partnership to a higher level, he said.

To jointly tackle the global financial crisis, China and the EU agreed to expand information exchanges between financial institutions, the central banks and financial supervisory and regulatory bodies. [Without relying on US leadership]

Both sides pledged to promote trade and investment. China will continue to steadily expand market access and increase import from the EU, while the EU recognized China's achievement in promoting market economy. [Sounds like a great deal for EU. They get increased exports to China in exchange for praising China’s economy.]

Both sides agreed to support cooperation between small- and medium-sized businesses and to deepen cooperation in technological innovation in such areas as energy conservation, greenhouse gas emission reduction and health care.

China and the EU vowed to work together in mitigating and adapting to climate change, agreeing to boost cooperation in developing new energies, new energy conservation technology and a low-carbon economy.

The two sides also reached consensus on close coordination in macroeconomic policies and opposition to trade protectionism.

China and the EU on Friday signed cooperation agreements on aviation, work safety, clean energy and intellectual property rights protection.

China View reports that Chinese premier pledges balanced trade with Spain.

Chinese premier pledges balanced trade with Spain
www.chinaview.cn 2009-01-31 12:04:35

MADRID, Jan. 30 (Xinhua) -- China will take active steps to seek a balanced growth in bilateral trade with Spain as part of its efforts in promoting all-around China-Spain cooperation, visiting Chinese Premier Wen Jiabao said Friday.

China and Spain have planned to increase bilateral trade volume to 40 billion U.S. dollars by 2011, Wen said at a meeting with his Spanish counterpart Jose Luis Rodriguez Zapatero.

To reach this objective, China will send a purchasing group to Spain so as to expand its product and equipment imports from the country, said Wen, who is on an official visit to Spain.

During the meeting, the two sides pledged joint efforts in enhancing comprehensive bilateral cooperation and exchanges.

They agreed to expand two-way investment, particularly in the areas of telecommunication, infrastructure construction, auto industry and logistics.

Spanish enterprises are welcomed to explore markets in China's middle and western regions, while Spain looks forward to receiving more investment from China.

Cooperation between the two countries' small- and medium-sized enterprises is also encouraged, Wen said.

The two sides also pledged to enhance cooperation in science and technology, and to carry out joint research and development in such fields as renewable energy, ecological environment and recyclable economy.

"At present, China and Spain should join hands in tackling the financial crisis, and the primary task for us is to boost economic growth," said Wen.

After the meeting, Wen and Zapatero attended a signing ceremony for a number of documents on the two countries' cooperation in finance, aviation, energy and telecommunication.

China and Spain also issued a joint statement on further strengthening their comprehensive strategic partnership.

[Wen’s trip to Britain is ongoing]

My reaction: I get the feeling from Wen’s trip that China and the EU are getting ready for a post-US world. Some key points to take away from Wen’s trip are:

1) Wen has urged the international community to set up a new global economic system. His proposals include:

A) Better global economic cooperation and a more intensive and sound multilateral trading regime (the US’s massive trade deficit is not sound).
B) Stronger global cooperation in financial supervision and regulation to guard against the build-up and spread of financial risks;
C) Protection of developing countries' interests
D) Tackling global challenges, such as climate change, environmental degradation, natural disasters and food security.

2) Wen said China "is not seeking a trade surplus" and is interested in buying German products and technology.

3) China will send a purchasing group to Spain so as to expand its product and equipment imports from the country

4) Spanish enterprises are welcomed to explore markets in China's middle and western regions, while Spain looks forward to receiving more investment from China.

Conclusion:

Wen’s trip shows that China is serious about its efforts to boost domestic spending. Specifically, it intends to promote growth “China's middle and western regions” through consumer spending. This is why Spanish companies are being invited to explore markets there.

With its new focus on boosting domestic spending, China is probably serious this time about opening up its domestic markets this time. This will greatly help the Euro zone manufacturing sector.

Unfortunately, China’s new focus on consumer spending in China is very, very bad news for the US. It means that China is going to let exporter sector shrink in favor of boosting its service sector, and this shrinking export sector is going to create a worldwide shortage of goods, forcing up prices.

Finally, here is an excellent PDF providing all types of nice info on China and the EU:

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113366.pdf