China and the European Union must work toward a comprehensive, balanced and high-level bilateral investment agreement before the end of this year to drive a global economic recovery, Premier Li Keqiang said on Monday.

Li's remarks came as he co-chaired the 22nd China-European Union leaders' meeting with European Council President Charles Michel and European Commission President Ursula von der Leyen via video link.

Leaders from both sides have noted progress on investment talks and look forward to reaching an agreement at a highly ambitious level, according to a press release issued after the meeting.

Both sides agreed to make the utmost efforts to reach consensus over rules for fair competition, it said.

China and the EU, as the world's major economies and both facing challenges from the COVID-19 pandemic, must step up coordination in macroeconomic policies and safeguard the stability of industry and supply chains to provide impetus for global economic recovery, the premier said.

Li reiterated China's commitment to expanding opening-up and creating a market-oriented, law-based and internationalized business environment, saying that he hopes the EU side also can open up its trading and investment markets and relax restrictions on exports to China.

He noted that the cooperation and consensus between China and the EU, as comprehensive strategic partners, have far outweighed competition and differences.

Bilateral cooperation, which set the tone for 45 years of diplomatic relations, has increased the well-being of both peoples and injected more stability into a complicated and changing world, he said.

China has always supported the European integration process and hopes to see a Europe that is united and prosperous, he said.

He urged both sides to see bilateral relations from a long-term perspective, uphold the positioning of the bilateral comprehensive strategic partnership, bolster mutual understanding through enhanced dialogue and enable win-win outcomes from more in-depth cooperation.

China stands ready to maintain a dialogue with the EU over issues including the World Trade Organization reform and to jointly safeguard the rules-based multilateral trade system, he said, adding that Beijing will take part in the multilateral agenda to cope with climate change in a constructive manner.

Li highlighted the significance of continuing to support the leadership of the World Health Organization in the global coronavirus response and deepening international cooperation in the research and development of vaccines and pharmaceuticals.

The two EU leaders said the COVID-19 pandemic has not weakened the intentions of both sides to work together, and the two sides have supported each other and shown solidarity during the coronavirus response.

The EU side is willing to bolster cooperation on economic recovery with China and further open up markets while jointly upholding multilateralism and free trade, they said.

The meeting, the first official meeting between Chinese leaders and the new EU leadership, was held as the two sides celebrated the 45th anniversary of diplomatic relations.

The EU was China's biggest trading partner last year, while China was the EU's second-largest trading partner. However, the Association of Southeast Asian Nations overtook the EU as China's largest trading partner in the first three months of this year, as the COVID-19 pandemic hit global trade hard.