Brussels, 27/11/2007 (Agence Europe) - The annual EU-China summit to be held on 28 November in Beijing will be an opportunity for the European delegation, led by Portuguese Prime Minister and President of the European Council José Socrates and President of the European Commission José Manuel Barroso, to demonstrate firmness on trade and monetary matters with the Chinese authorities, led by Prime Minister Wen Jiabao. The member states, who have previously favoured the dialogue approach, are losing patience in the face of Beijing's tardiness in correcting Chinese bilateral trade distortions which damage Community economic interests. The EU does not intend “to turn away from dialogue and cooperation”, stressed Trade Commissioner Peter Mandelson, who has not hesitated to raise his voice since his arrival in Beijing last Friday (EUROPE 9551). But it wants “a major change” in China's approach and “tangible results”. The European leaders will however be sure to stress their frustration while Europe has so many grievances: the EU trade deficit to China, which could reach €170 billion this year despite 21% growth in European exports, insufficient progress on access to the Chinese markets for European exports and investments, protection of intellectual property rights (IPR) and the fight against pirating and counterfeiting. Like Mr Mandelson this week, the European leaders are likely to brandish the threat of antidumping measures against Chinese products (steel in this case), but also of recourse to the WTO on the IPR issue. Alongside the trade disagreements is the Chinese maintenance of an artificially low yuan to support exports and economic growth. The European frustration on this matter has led those responsible for monetary issues, the president of the Eurogroup, Jean-Claude Juncker, the governor of the ECB, Jean-Claude Trichet and the commissioner for economic and monetary affairs, Joaquín Almunia, to go to Beijing on Tuesday 27 November to demand a better balance in the exchange rates between the euro and the yuan. The determination likely to be shown by the European leaders was previewed on an official visit on 26 November by French President Nicolas Sarkozy, whose main message was an appeal for China to demonstrate global responsibility. Outside economic matters, there are ample other sources of dispute: the human rights situation in China, which remains the major obstacle to the lifting of the European arms embargo in place since 1989; international issues, with differences of opinion on the subjects of Iranian nuclear capabilities, Sudan/Darfur and Burma/Myanmar; climate change/energy security, where the EU would like to obtain greater involvement and commitments from Beijing to reduce its greenhouse gas emissions with a view to a new international agreement to succeed the Kyoto Protocol, which expires in 2012. These differences will not, however, stand in the way of strengthening general bilateral cooperation, as envisaged in the negotiations (launched in January) for a new partnership and cooperation agreement (PCA) designed to replace the cooperation and trade agreement from 1985, progress on which will be assessed by the two parties at the summit. (E.H.)