EU, China heading in the right direction

According to Frahm, although there are several attributes for success, it is high retention rate of local talent, their deep commitment and the close linkages within China that have really made the difference.

Frahm admits that during the last few years, demand for the German company's products has surged in China. "There is a continuous and growing demand for affordable products and solutions in the medium and upper basic segment markets of China. We anticipate these sectors to clock even higher growth rates going forward."

Frahm also believes that growing economic interaction between the EU and China are important because it provides a legal framework to the investment activities and a solid platform for future projects.

Dewit says both economies have benefited from the growth in bilateral trade relations during the past few years. "Chinese and EU authorities should take more steps to promote these interactions. Culture is another aspect that will play an important role in the future because both sides need to understand each other better," he says.

Dewit admits that Europe needs to brush up on its knowledge of Chinese language and culture, while European institutions must do more to promote European culture in China.

"Both sides have to do their best to avoid misunderstandings based on ignorance or false perceptions," he says.

Rolf J. Langhammer, former vice-president of the Germany-based Kiel Institute for the World Economy, says the summit is an important milestone for settling bilateral trade policy tensions, such as anti-dumping issues, and for coordinating positions at the upcoming Bali round of global trade negotiations.

According to Langhammer, China still believes that the EU has a long way to go until a full economic recovery. "They (the Chinese) believe that the EU is still an important export destination and a host market for overseas investment."

Li Xiaofei contributed to the story.