Chinese Premier Wen Jiabao addresses the 6th China-European Union Business Summit in Brussels, capital of Belgium, Oct. 6, 2010. [Xinhua/Wu Wei]

Chinese Premier Wen Jiabao on Wednesday called on the European Union (EU) to recognize China's market economy status and remove its arms embargo against it.

Speaking at a China-EU summit, Wen said the summit mechanism, the highest-level platform for bilateral political talks, should push for an end to the two outstanding difficulties.

The summit should enhance its role as provider of strategic guidance, and clear the way for further advancement of China-EU ties, he told the summit, co-chaired by him, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

China would work with the EU to achieve balanced and sustainable development of bilateral trade, improve investment environment and enhance cooperation in financial and fiscal policy-making processes, Wen added.

Meanwhile, the two sides should make concerted efforts to further expand hi-tech cooperation and people-to-people exchanges, push for the reform of the international financial system and maintain coordination on climate change, energy security and hot regional affairs, the Chinese premier said.

All responsible countries in the world should refrain from launching trade or currency wars, Wen said, expressing the hope that the European side would take an objective and fair stance on China's currency exchange rate.

Wen said China has expressed its support for and confidence in the 27-member European bloc, and believes that a strong and stable EU is conducive to the world as well as to China.

China is pleased to see that the EU has weathered the hardest times of the latest global financial crisis, stabilized its financial sector, and also made important strides in the integration process, and Beijing is confident that the EU has a bright future, Wen told the audience.

He also voiced the hope that the EU could treat China's development in an objective and fair manner, respect China's major concerns and core interests and formulate more positive and visionary China policies so as to further develop the comprehensive strategic partnership between the two sides.

For their part, EU leaders thanked China's strong support in fighting the financial crisis, and stressed that the two sides have extensive common interests and that fostering relations with China is a priority in the EU's foreign polices.

The two sides should make use of the summit and other mechanisms to map out future development of bilateral ties, promote mutual exchanges and understanding, seek better solutions to differences and frictions, and thus make bilateral cooperation more efficient, they added.

The European side opposes trade and currency wars as well as other forms of protectionism, and is ready to work with China to expand bilateral trade and mutual investment, improve coordination on international affairs and tackle climate change, the international financial crisis and other global challenges, they said.

Following the summit, China and the EU issued a joint press communique, expressing their commitment to opening a new phase in their relations.

"They agreed to intensify discussions on ways to promote bilateral trade and investment, also removing trade barriers and ensuring a business climate conducive to further development of trade and investment relations," said the communique.

The two sides reiterated that more concerted efforts are needed to put in place sound fiscal policies that would guarantee the sustainability of public finances while being growth-friendly, the communique added, noting the need to intensify structural adjustment in order to make growth more sustainable and balanced.

It remains an urgent global challenge to secure financial stability and an open trade and investment environment, and the Group of 20 (G20) summit slated for November in Seoul, South Korea, should introduce synchronized action to lay a firm foundation for robust, sustainable and balanced economic growth, the document added.

The two sides will also deepen cooperation in renewable energy, continue climate change-related negotiations and strive for comprehensive and balanced results at the UN climate change conference scheduled for December in Mexico, the communique added.

China and the EU support the bid to complete the quota reform of the International Monetary Fund before the Seoul G20 summit, it said.

The two sides also expressed full support for a series of exchange programs designed to bridge different civilizations and promote mutual understanding and friendship between Chinese and European youths.