The European Union's trade chief has said new talks with China next year would tackle "gaps" in Beijing's efforts to dismantle trade barriers and protect intellectual property rights.

Peter Mandelson, the European Union's trade chief, has said new talks with China next year would tackle "gaps" in Beijing's efforts to dismantle trade barriers and protect intellectual property rights. [AFP]

"We are satisfied China is implementing the bulk of its WTO accession commitments, but there are gaps," said Peter Mandelson, concluding a week-long visit in Beijing.

"For example on access to certain service markets and IPR (intellectual property rights). These are best tackled by negotiations and talks."

Mandelson met Friday with China's vice premier, Wu Yi, a former trade minister, and said the two sides agreed on talks starting in January, focusing first on updating a 1985 investment agreement.

In a statement, the EU said it was not seeking a "full-blown" trade agreement because that would involve extensive tariff reductions that would be difficult for both sides.

"But the terms of reference for the negotiations which Wu Yi agreed should be put in place over the next month will reinforce present reciprocal agreements ... where trade conditions are improving." the statement said.

It said the EU had received assurances from Wu that China would build on its present World Trade Organisation commitments in the new talks.

"China is doing what it is obliged to do. We will maintain this and reform will continue," Wu told Mandelson, according to the EU statement.

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Mandelson was in China to push its leaders on IPR protection and on removing market barriers to foreign imports and companies, a message bolstered by China's announcement of a record monthly trade surplus in October during his stay.

The surplus hit 23.8 billion dollars last month, according to customs data.

Exports reached 88.1 billion dollars, an increase of 29.6 percent compared with the same month a year ago, the data said. Imports reached 64.3 billion dollars last month, a rise of just 14.7 percent.

Mandelson said on Tuesday that China's failure to address market barriers and IPR could harm wider relations between the EU and China, whose trade ties have grown rapidly.

On Saturday he appeared optimistic that the Chinese were prepared to address the problem.

"From my discussions with Wu Yi, I think China will be ready to open and liberalise further in some key areas as long as the balance of reform is realistic for China's stage of development," he told AFP.