International cooperation in production capacity offers huge opportunities for participating in a country's economy. China and Europe, at different stages of development and with their respective strengths and demands, have a lot to share in this regard.

The world economy is undergoing a profound readjustment, and expansive monetary policies such as the quantitative easing measures applied in certain parts of the world offer no effective way out of sluggish growth.

Many developing countries including China find themselves in the process of industrialization and urbanization, while rich nations are confronted with the challenge of re-industrialization.

"It is the right time to push for international cooperation in production capacity," Chinese Premier Li Keqiang said in Europe recently. China has hoped to match its advantages in production capacity with demand for infrastructure updates in the rest of the world.

The EU last week reached a deal to create a $345 billion fund to upgrade infrastructure, stimulate the EU's sluggish economies and ignite job growth.

China has a full-fledged construction material production capacity and relevant made-in-China equipment is widely adaptable, which makes China a qualified candidate to be part of this ambitious plan.

Europe, meanwhile, boasts the most advanced and valuable technologies urgently needed by China to update its equipment and manufacturing capacities.

China encourages its best enterprises to participate in infrastructure construction projects such as the Trans-European Transport Networks, China-Europe Land-Sea Express Line and New Euro-Asian Continental Bridge.

European enterprises are also encouraged to join the "One Belt, One Road" initiative that was proposed by Chinese President Xi Jinping in 2013 with the aim of reviving the ancient trade route between Asia and Europe.

Cooperation between China and Europe would also facilitate their expansion into the third-party market and lead to better performance both at home and abroad.

China will have to buy some of Europe's advanced equipment while giving full play to its manufacturing and assembly capacities in its cooperative projects with other developing nations and in the regions of Central and Eastern Europe.

China-Europe cooperation involving third-party market is destined to be an all-win situation, as excessive production capacity in China will be used to galvanize developing countries' real economies while pressing for industry updates back home in China.

Europe is in the position to provide China with the elements it needs to grow, and in turn be rewarded with China's strengths to realize its re-industrialization.

Financial cooperation is also indispensable. China has announced plans to expand its purchase of bonds issued by the European Investment Bank and improve the Renminbi Qualified Foreign Institutional Investor system.

In addition, China has encouraged other investment and financing arrangements to play a bigger role in the revitalization of the European economy, including the China-initiated Asian Infrastructure Investment Bank.

To promote their cooperation, China and Europe also need to further liberalize trade and investment and properly handle trade frictions. All these measures would ensure a continued leap forward in their bilateral trade.

The article is a commentary from the Xinhua News Agency. The article first appeared on Xinhua. opinion@globaltimes.com.cn