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On Thursday the leaders of China and France called on the European Union (EU) to lift its arms embargo on China that has been in place since 1989 and grant the country market economy status.

"The two sides believe that the European Union should take the EU-China expanding partnership into full consideration most notably by lifting the arms embargo which is no longer pertinent to the present situation," said a joint statement signed by Chinese President Hu Jintao and his French counterpart Jacques Chirac after their talks in Beijing.

The joint statement also called on the EU to grant China market economy status as soon as possible.

The two leaders vowed to continue their efforts to deepen the comprehensive strategic partnership between China and the EU, according to the joint statement.

They also agreed that in order to solve the problems that had emerged in trade relations both China and the EU should conduct dialogue and negotiations based on an equal footing and in accordance with the World Trade Organization's regulations.

(Xinhua News Agency October 26, 2006)