China and the European Union have pledged to work together to achieve balanced trade and collaborate on addressing climate change during high-level meetings marked by tensions related to Tibet protests and the Olympics. EU officials, led by European Commission President Jose Manuel Barroso, had planned meetings with senior Chinese officials in Beijing this week to help mend disagreements over China's significant trade deficit and to reach an agreement on sustainable growth. Economic tensions have persisted as China's trade surplus with the EU bloc reached nearly 160 billion euros ($251 billion) last year, based on EU data. Chinese Premier Wen Jiabao stated that both sides had agreed to strengthen cooperation on energy conservation and reducing emissions, emphasizing that the benefits of collaboration far exceed any conflicts. Wen told reporters that a better future for the Sino-EU relationship is possible as long as there is respect, trust, and mutual learning. Barroso stated that the main focus of the talks was climate change and China had expressed willingness to include domestic emissions in a global agreement post-2012. He noted trade imbalances and the need for a rebalance, with talks overshadowed by Tibetan unrest and protests during the Beijing Olympic torch relay in London and Paris. Barroso also welcomed China's decision to hold talks with representatives of the Dalai Lama. Barroso emphasized the importance of dialogue in finding a sustainable solution to the Tibet issue while also respecting China's sovereignty. Mandelson called for an end to threats of boycotts and urged both sides to engage in constructive dialogue. The European Parliament has called for a boycott of the Beijing Games' opening ceremony unless China initiates talks with the Dalai Lama, but Mandelson believes that such actions and retaliatory boycotts are unproductive for both sides.