for european companies. >> to talk more about china's economic ties with europe and the rest of the world i am joined by an economist at the center for internationalcs in munich. you have called on the eu to strengthen ties with asian countries including china. why do you think this is so important right now? >> so, with the emergence of global value chains asia became important in global production, especially in europe, many final goodrely heavily on asian intermediates. therefore, we gain gnificantl if we managed to reduce trade costs with asia. with respect to china, i think the european union has a high interest in strengthening ties, especial because china is such a largeountry and therefore a large market also for european firms. but, however, i also think that the european union has -- does not want to strengthen ties with cha at any price. so there are a couple of nonnegotiable's for the european union. fo example, e protecon of intellectual property rights. so, before these are solved, i do not think we will see that much of a strengthening there. >> i would like to pick up on something you set. china is considereto be a difficult partne