Investment agreement with China key to boost trade ties: EU

An investment agreement between China and the European Union is good for their overall trade relations, said the EU ahead of crucial investment talks before Chinese president's visit.

"Investment is one of the keys motors of any economy and is instrumental in generating growth and creating jobs," said EU Trade Commissioner Karel De Gucht in a statement on Monday.

"Securing an ambitious investment agreement with China will be an important step not just for getting better market access and protection for investors, but for strengthening our trade relations with China overall," he added.

On the eve of the first ever visit by a Chinese president to the European institutions, the European Union (EU) and China will hold their second round of talks on an EU-China investment agreement on Monday and Tuesday in Brussels.

The statement said the talks are expected to continue making progress in clarifying each side's approach to key elements of the agreement. The visit by President Xi Jinping on March 31 is expected to give an impetus to the negotiations.

Agreement to launch negotiations for an investment deal was reached at the EU-China Summit of February 2012. The negotiations started at the 16th EU-China Summit last November.