7. Recognises that the partnership between the EU and China on the basis of equal status and mutual advantage has expanded considerably in recent years; notes that it is necessary, however, in order to consolidate these relations on the basis of partnership, to strengthen and further develop dialogue in the political, economic, scientific and cultural fields; 8. Notes the need for an intense cultural dialogue between Europe and China; proposes in this context that Member State universities create/expand their departments of Chinese studies and invites the Commission to study the possibility of enlarging the existing programmes, e.g. Tempus, in order to promote projects for reciprocal university exchanges; 9. Acknowledges that the beginnings of democratic representation at municipal level constitute a step in the right direction towards participative democracy at both regional and national level; 10. Cannot over-stress the fact that the EU has a profound interest in a stable, prosperous, open China which embraces democracy, free market principles, human rights and the rule of law, and that it must pursue policies which help China further endeavours in this direction; 11. Notes that the dialogue between the EU and China on the rule of law, civil society and democracy is becoming increasingly intense; this dialogue should be accompanied by public and/or private initiatives and measures such as exchanges of schoolchildren and students, the setting up of contact groups of Members of Parliament and stronger cultural links; 12. Stresses the importance of the successful experiences of the Hong Kong and Macao regional and special autonomies in widening and deepening cooperation between the EU and China in the political, cultural, economic and social fields; 13. Calls on the Chinese government to facilitate the family reunion of children born on the mainland with their Hong Kong permanent resident parents, in accordance with the findings of the United Nations Committee on the Rights of the Child and the United Nations Committee on Economic, Social and Cultural Rights; Trade 14. Congratulates China on its recent accession to the WTO, and expresses its support for the progress made so far in its economic and social reforms, but stresses that much greater progress on the application of the rule of law in China is essential to the full integration of China into the global market place; 15. Is fully conscious that WTO accession marks a major development in China's relations with the rest of the world and that it will change both China's existing trading system and China itself; notes that the next few years will test the regime's capacity to adapt to a changing world on its own doorstep, but takes the view that economic progress can only succeed in tandem with political and social progress; expects China to give evidence that it is able to deal satisfactorily with the social and labour problems which will arise as a result of WTO accession; is convinced that in the longer term the EU, the US, Japan and