EU warns Beijing over trade disputes

The European Commission has warned Beijing it will haul China before the World Trade Organisation if future trade disputes can't be resolved through talks.

Unveiling a new strategy for EU-China trade relations, the European Commission said China would face a political backlash in Europe if it did not play by the rules of international commerce.

The EU trade chief, Peter Mandelson, told a news conference at the European Parliament in Strasbourg that China had reached a stage in its development when the rest of the world was entitled to ask for more compliance.

Laying out Europe's demands, the British commissioner said the EU wanted China to fulfill its WTO obligations and continue to open its markets and liberalise trade in services and investment.

Since it joined the WTO in 2001, China's economy has been gradually opening up to European and other foreign exporters.

- RADIO AUSTRALIA