Talks between China and the European Union (EU) are likely to focus on ways to correct the growing trade imbalance.

China has been accused of dismissing U.S. and Europe's complaints over rigid trade barriers and failing to enforce protection of copyright laws.

EU Trade Commissioner Peter Mandelson met his Chinese counterpart Bo Xilai in Brussels on Tuesday.

The talks come amid mounting concern over China's trade surplus, which hit $22.4b (£11.4b) in May, up 73%.

The U.S. Government has already reported China to the World Trade Organization over copyright piracy and counterfeiting and Mandelson has indicated the EU is on the brink of adopting a similar tough stance.

And a group of U.S. Senators are planning to introduce legislation to force China to raise the value of its currency, which they believe is giving it an unfair trade advantage. -------------------------- Grossly impeded

EU officials have claimed that the export potential of member states to China's growing market of middle-income consumers has been grossly impeded by trade barriers that cost European businesses up to 20b euros (£13.5b) a year.

Europe also wants assurances from Beijing that they will do more to target rampant copyright piracy and strengthen legal protection for foreign firms doing business in China.

China could also ease tensions by curbing the output of its steel makers to prevent overcapacity in the global market, EU officials said.

This would reduce the risk that Chinese steel would be dumped in Europe at cheaper prices than local companies could compete with, they argue. (Source: BBC)