China must do more to remedy increasing trade imbalances with the European Union if it wants its relationship with the bloc to continue to grow, EU trade commissioner Peter Mandelson said on Sunday.
Mandelson's comments could signal the EU is preparing to take a tougher stance against the export powerhouse over its growing trade surplus and amid increasing calls from foreign investors for access into China's robust market.
"I am looking for China to do more to remedy the imbalances that exist," Mandelson told Reuters on the sidelines of the Euro-Mediterranean trade conference in Lisbon.
"This relationship is already a large one and it is potentially a huge one," said Mandelson, adding that for it to continue to grow it was very important for China and the EU to "get it right".
Asked whether his comments meant the EU was going to get tougher on China over trade, Mandelson replied: "It's not a question of Europe taking a tougher stand."
"It's a question of China exercising greater responsibility and being more conscientious in shouldering their fair share of the demands of this trading relationship."
The EU has traditionally been softer on China than the United States which has launched more litigation against Beijing at the World Trade Organisation. European Commission President Jose Manuel Barroso said earlier this week that he was "very concerned" with Europe's huge trade deficit with China. China's trade surplus with the EU reached 86 billion euros in the first seven months of 2007, up 25 percent from the same period of 2006.
"We need each other. So both of us have to pull our weight in making sure this relationship is conducted on a better, more level playing field than is the case at the moment."
Mandelson also said he welcomed the outcome of a summit of three big developing countries - Brazil, India and South Africa - last week which stressed the need for a deal in long-delayed world trade talks. The EU and the United States had urged the three countries to say at the summit that they would continue the talks on the basis of compromise proposals floated in July by the chairman of WTO negotiating groups which included ranges of tariffs cuts.
"Brazil, India and South Africa took a positive step last week at the meeting in signalling that they were prepared to negotiate on the basis of the chair's text," said Mandelson.
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