China and the European Union have pledged to work towards balanced trade and collaboration on climate change during high-level meetings that were overshadowed 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 in an effort to address issues surrounding China's trade deficit and to reach an agreement on sustainable economic growth. Economic tensions have escalated as China's trade surplus with the EU bloc reached nearly 160 billion euros ($251 billion) last year, according to EU data. Chinese Premier Wen Jiabao stated that both sides have agreed to enhance cooperation on energy conservation and reducing emissions, emphasizing that the benefits of collaboration far outweigh any conflicts. Wen expressed optimism for the future of the Sino-EU relationship, emphasizing the importance of respect, trust, and learning from each other. Barroso highlighted climate change as a key topic of discussion, noting China's willingness to address domestic emissions as part of a global agreement. Both sides acknowledged trade imbalances and agreed on the need for a rebalance. The talks, which were overshadowed by anti-Chinese unrest in Tibetan areas, also involved protests during the Beijing Olympic torch relay in London and Paris. Barroso welcomed China's decision to hold discussions with representatives of the Dalai Lama. Barroso stated that while they respect China's sovereignty, they believe that dialogue is the best way to resolve the Tibet issue. Mandelson urged an end to threats of boycotts, as both the European Parliament and China have been involved in calls for boycotts. Mandelson emphasized that these actions are not beneficial for either side.