Despite lingering concerns over issues ranging from trade imbalances to human rights, leaders in China and Europe are optimistic and confident that they will solidify their ties at their annual summit this month in Beijing.

"The partnership between China and Europe has developed harmoniously and effectively," said Ambassador Serge Abou, head of the delegation of the European Commission to China at a recent press conference. "We can be proud of what we have achieved."

The EU is China's largest trading partner, and China is the EU's largest supplier. The EU is also China's largest partner in the field of science and technology. About 120,000 Chinese students study at European universities. Cooperation in tourism is rapidly expanding, as evidenced by the 1.23 million visas that EU member states issued to Chinese visitors last year.

Portuguese Prime Minister Jose Socrates, whose country currently holds the rotating presidency of the EU, President of the European Commission Jose Manuel Barroso, other senior EU officials and top Chinese leaders will attend this year's summit on November 28, the 10th meeting since the summit was launched in 1998.

Experts are keeping a close watch on topics such as current international affairs, trade, the environment and energy, believing the summit will help enhance coordination between China and the EU on these highly charged issues.

All-encompassing discussions

Liu Jiansheng, an associate research fellow who specializes in EU studies at the China Institute of International Studies, said the purpose of the summit is to cement the political and economic relations between China and the EU. He said trade and the new China-EU Partnership and Cooperation Agreement (PCA) would be the most important topics.

The PCA is a new framework that will govern China-EU relations over the next decades. Negotiations on the PCA, which began early this year, have progressed steadily, and there could be an "early harvest" at the summit, Abou said.

Chinese and European leaders also will talk about implementing the Kyoto Protocol and finding a successor for it in preparation for next month's global-warming conference in Bali, Indonesia, Abou said.

At the annual meeting of the UN Framework Convention on Climate Change, government ministers will discuss proposals on mitigating global warming, further developing the global carbon market and financing responses to climate change after the Kyoto Protocol expires in 2012.

"Energy-saving, environmental protection and developing alternative sources of energy in China are sectors with high growth potential," Abou said. "Protecting the environment and saving energy are not in contradiction with high growth. They could lead to very fast growth and serve the general interests of China and the Chinese people."

Regarding the trade imbalance, Abou said there are no "philosophical disagreements" between China and the EU on this issue, because China is convinced that a huge trade surplus is not healthy for its own interests. But the problem will not be solved easily or immediately, he said. The summit is expected to give it an impetus at the leadership level, he added.

The trade volume between China and the EU is projected to exceed $300 billion this year, with European countries' trade deficit dramatically on the rise, Liu said. It is no wonder that trade frictions have been increasingly frequent in recent years, he said.

Feng Zhongping, Director of the Institute of European Studies at the China Institutes of Contemporary International Relations, said current China-EU relations are characterized by "new developments" and "new challenges." While progress has been made in the fields of trade, strategic dialogue and cultural exchange, challenges are emerging. One of the most difficult challenges is that the China-EU economic and trade relations are becoming both complementary and competitive, with the latter aspect gaining prominence. Given its huge trade deficit, the EU is likely to pressure China to appreciate its currency even more, he said.

Along with the China-EU Summit, there will be a business summit that focuses on dialogue between Chinese and European companies. Intellectual property rights and product safety will be high on its agenda.

"We cannot compromise the safety of our consumers, but we do not like to use this to justify the protectionist stand against China," Abou said. The EU will increase its cooperation with China to improve the safety of Chinese products in foreign markets and the Chinese market as well, he said.

The two sides also will sign some specific agreements, Abou said. The European Investment Bank will give a 500-million-euro loan to help China tackle climate change. China and the EU will sign an agreement on training management professionals at the Shanghai-based China Europe International Business School. Also, the EU's proposal to start a Sino-EU clean-energy center in China may get a favorable response.

More common ground

The EU has developed a regional policy to balance the rich and poor areas of Europe, as well as a social policy to deliver social security benefits to Europeans for health care, unemployment and retirement pensions, Abou said. It has technologies, standards and legislation to protect the environment and save energy.

EU states are among the most energy-efficient nations in the world. Also, the EU has set objectives for tackling climate change, and European governments and companies are trying to put them into practice, he said.

"If we look at the needs of China in the next 10 years and the direction China is going in, we consider we have a lot [to offer] in cooperating with the country," he said.

Apart from probing each other's strategic needs, leaders are set to discuss the international political situation at the summit. Their topics could include antiterrorism, Africa, Myanmar, North Korea and the Middle East, Abou told reporters.

Both Liu and Feng singled out China's policy toward Africa as a major point of contention. As it is impossible to stop China's involvement in Africa, the EU should enhance policy consultation with China and explore ways of cooperation through dialogue, Feng said.

Experts also pointed out that new European leaders are adjusting Europe's foreign policy. While trying to mend their relations with the United States by increasing bilateral strategic coordination, some European countries have taken steps on China's human rights issue, exerting mounting pressure on the country's internal affairs, Liu said.