November 29, 2007	Thursday	Ziqa’ad 18, 1428

BEIJING, Nov 28: China and Europe confronted each other over their long-running trade dispute here Wednesday, with the EU calling for a level playing field and Chinese Premier Wen Jiabao insisting on gradual reform.

“The EU exports less to China than to Switzerland, a country of seven million people,” European Commission President Jose Manuel Barroso told business forum on the sidelines of annual summit between the two sides.

“Our ultimate goal is to create a level playing field for both sides.” EU Trade Commissioner Peter Mandelson spoke out at the same forum about China’s trade surplus, which has put the focus on the Chinese currency, the yuan, with critics arguing it is being kept artificially weak.

“Our trading relationship with China started as we know in a balanced way,” Mandelson said, with Wen in the audience.

“Now it is less balanced. Indeed in my time in China these last five days, it has grown by over two billion euro,” he said, referring to Beijing’s trade surplus.

In closed-door talks with Barroso earlier Wednesday, Chinese President Hu Jintao pledged to do more to cut the surplus, according to an EU official.

“I don’t favour a sizable trade surplus with the EU. We are ready to work with you to reduce our surplus,” Hu said, according to the official, who asked not to be named.--AFP