China and the European Union have pledged to pursue fair trade and enhance collaboration on climate change during high-level meetings marked by tension surrounding Tibet protests and the Olympics. EU officials, led by European Commission President Jose Manuel Barroso, had planned to meet with senior Chinese officials in Beijing this week to address disagreements over China's significant trade deficit and promote sustainable growth. Economic strains have intensified as China's trade surplus with the EU bloc reached nearly 160 billion euros ($251 billion) last year. Chinese Premier Wen Jiabao stated that both sides have agreed to strengthen cooperation in energy conservation and emissions reduction, emphasizing that the benefits of collaboration far outweigh any conflicts. Wen stated that a better future for the Sino-EU relationship is possible as long as there is respect, trust, and mutual learning. Barroso emphasized that the main focus of the talks was climate change and China had shown willingness to include domestic emissions in a global agreement post-2012. Both sides agreed on the need to address trade imbalances. The talks, which were planned for a long time, were overshadowed by anti-Chinese unrest in Tibetan areas and subsequent protests during the Olympic torch relay in London and Paris. Barroso praised China for agreeing to hold talks with representatives of the Dalai Lama. Barroso explained that while they respect China's sovereignty, they believe that dialogue is necessary to find a lasting solution to the Tibet issue. The Chinese government is willing to discuss everything except sovereignty for Tibet. Mandelson urged an end to threats of boycotts, as the European Parliament has called for boycotting the Beijing Games unless China engages in talks with the Dalai Lama. He stated that mutual boycott threats and counter-campaigns by China against European companies like Carrefour are not beneficial for either side.