China and the European Union issued a joint statement after the 21st China-EU Summit on April 9. The joint statement marks a milestone in bilateral relations and sets the direction for the next phrase.

In retrospect many joint statements have been issued after the summits, but only a few of them have played a role in deepening China-EU relations.

Among them, the joint statement in 2003 identified bilateral relations as a comprehensive strategic partnership; and the joint statement made in 2013 announced the 2020 Strategic Plan of China-EU Cooperation, which offered a guiding principle for the deepening of bilateral relations at that stage.

No joint statement was issued at the next two summits, because China and the European Union had big differences on certain major issues. For example, with regard to investment agreement negotiations, the two sides think differently on market access, trade conflicts, technology transfer and investment protection.

Also, the widening gap between booming China and declining EU has been exploited by the rise of right-wing populism and trade protectionism in Europe.

In this context, their free trade and investment negotiations have been at a standstill. Therefore, the Western media did not have high expectations of year's summit.

But defying the pessimism, China and the EU reached a consensus this time after more than 50 hours of consultations.

I believe there are three reasons for this worthy of attention.

First of all, the lingering Brexit process has hurt both the United Kingdom and the EU. So, the latter needs to strengthen economic and trade cooperation with China so as to defuse the impacts of Brexit. China and the EU are each other's largest importers. In 2018, the bilateral trade volume reached a record high of $682.2 billion.

Also, bilateral economic and investment relations have reached a new height, requiring both sides to promote mutual understanding, seek common development, and reach an agreement on free trade and investment as soon as possible.

Second, the Sino-US trade war has frightened the EU and dented China's economic strength as well.

Lastly, but most importantly, Chinese and EU leaders take the bigger picture into account and believe equal cooperation and mutual benefit is of great significance.

In 2019, Chinese leaders have done much work to deepen China-EU relations and made concessions to break the deadlock.

So, President Xi Jinping and Premier Li Keqiang both chose Europe as the first destination for their overseas trips this year, a move intended to show China's sincerity to the EU.

Also, European companies will have their economic interests guaranteed both in policy and in law by the Chinese government. For example, the newly-approved Foreign Investment Law approved in March offers an opportunity to promote investment liberalization and facilitation between China and the EU.

The BT Group has become the first foreign company to secure nationwide value-added licenses in China, while UBS AG has become the first foreign financial institution to gain control of a securities firm in the Chinese mainland.

Also, China has granted German insurer Allianz permission to set up the first wholly foreign-owned insurance holding company in the country.

Also, compared with previous Sino-European joint statements, the newly issued one contains only 24 articles, but the connotations of those 24 articles are very rich.

It shows both sides' belief in and determination to deepen cooperation, achieve mutual benefits and secure a win-win situation for the international community.

To begin with, the ongoing China-EU 2020 Strategic Agenda for Cooperation is nearing its end date and a new cooperation framework is needed.

The joint statement calls for a new outline to be made before next year's summit to guide Sino-EU relations after 2020. From this perspective, the joint statement has set out strategic guiding principles.

Next, the statement unexpectedly announced that the 2019 China-EU investment liberalization negotiations require decisive progress in order to reach a high-level China-Europe investment agreement by 2020.

Against the backdrop of prevailing unilateralism and protectionism, the two major economies have made a promise, as well as given a timetable and a road map for completing negotiations as soon as possible, which is a significant move for deepening China-EU relations and promoting economic ties between Asia and Europe.

Third, the statement confirms both sides' willingness to conduct scientific and technological exchanges, and highlights 5G technology cooperation.

At a time when the US government is striving to purposely make difficulties for Huawei, China's 5G innovation leader, the EU is considering the overall situation and carrying out 5G technology cooperation with China, fully reflecting its strategic partnership with China.

What's more, the statement also issued positive political signals about reform of the global governance system.

For example, the two sides recognize the responsibility of playing a model role in supporting open, balanced and inclusive global economic policies. And the two sides reaffirmed their joint commitment to World Trade Organization reform and cooperation to ensure its relevance and address global trade challenges.

The joint statement issued after the conclusion of this year's China-EU Summit will definitely promote the upgrading of bilateral relations, set the tone for the future direction of ties, and offer important guarantees for the next phase of bilateral cooperation.

The author is a researcher of European Studies at the Chinese Academy of Social Sciences.

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

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