Brussels, 17/04/2007 (Agence Europe) - Weary at not obtaining anything in negotiations, the US submitted two complaints to the WTO last week against Beijing for violating intellectual property and creating barriers to the distribution of cultural products - foreign music, films and books - China. Beijing immediately responded to these complaints by warning Washington against any deterioration in bilateral relations. Meeting the Chinese ambassador to the Union, Guan Chen Yuan, on Monday in Brussels, Peter Mandelson provided assurances that he preferred dialogue and negotiation and was against the Union joining US action at the WTO against piracy in China. Interviewed by the Xinhua agency, the trade commissioner affirmed: “At the moment, I have decided that the European Union should be an observer of the case rather than a party to it”. In a reference to a solution negotiated at the end of 2005 with his Chinese counterpart Bo Xi Lai, during a spat over textiles, Mandelson explained, “I, as you know, favour dialogue over WTO cases. Dialogue is my preference”. He acknowledged the efforts made by Beijing to better protect property rights (IPR) and fight piracy and counterfeiting but called on the Chinese authorities to do more to apply the laws and to implement the bilateral agreements, in order to reassure European investors. However, he did warn: “I have come under some pressure to join the United States in this case…it is possible that the events may force me to rethink this decision”. Although the Chinese authorities are boasting of “good results” in the fight against piracy and counterfeiting, they do, nonetheless, recognise that they are handicapped by the country's limited resources in both the financial arena and as far as public awareness is concerned. (eh)