China, EU to open new channel for discussions

China and the EU will establish a high-level mechanism to facilitate top-level discussions on economic and trade issues in a bid to remove growing tensions in their relationship, the Financial Times reported. European leaders see the mechanism, which will hold its first meeting in March, as a channel through which to call for faster renminbi appreciation as well as address their concerns over Europe's growing trade deficit with China. However, Beijing has made no indication that it will give ground on these issues. Premier Wen Jiabao sought to define the mechanism in broader terms, describing it as a forum for discussing topics such as environmental protection, energy and high-tech development as well as trade. He also said questions on the renminbi's rise against the euro were due to a falling US dollar and "would be best put to US financial authorities." Separately, it was agreed that the European Investment Bank would supply US$743 million in credit to China to help prevent or reduce greenhouse gas emissions.