The European Union signed a free trade deal with Singapore at a summit with Asian leaders and pressed China to allow greater foreign investment in its economy, but ran into familiar resistance from Beijing over state subsidies.
At a biennial Asia-Europe Meeting bringing together leaders representing 65 per cent of global economic output, France, Britain, Germany, Italy and the European Commission held private meetings with Chinese Premier Li Keqiang, hoping for greater access for EU companies to the world's No.2 economy.
When asked about Chinese trade practices, Austrian Chancellor Sebastian Kurz told reporters after the summit that Europe expected rules to be upheld, and wanted reforms of the World Trade Organisation.
"When we find protectionism, we reject it. Free trade must always be fair, equitable and based on rules. That goes in both directions," he said.
Li told British Prime Minister Theresa May that he "looked forward to ushering in a diamond era" after their bilateral meeting, a British government statement said.
In a sign of China's outsized role, Li led the pack of European and Asian leaders along the summit red carpet and stood in the centre of the 50 other leaders for a photo, alongside Merkel and the summit chair, European Council President Donald Tusk.
China has been promising for years to ease restrictions on foreign investment, but Western governments say little has changed and many are worried that Beijing is heading towards more state control under President Xi Jinping.
French President Emmanuel Macron held talks with Li on Thursday evening, lobbying for better access to China's poultry, dairy, pharmaceuticals, services and financial services sectors, but there was no sign of a breakthrough.
China did appear to win some sympathy for US President Donald Trump's tariffs on billions of dollars of its exports.
The European Union and the US accuse China of directly funding state companies through Chinese banks to help them to dominate global markets, breaking rules set down by the World Trade Organisation, of which China is a member.
After sessions on improving connectivity and the multilateral system and a host of bilateral meetings, the summit finished on Friday with the EU signing the agreement with Singapore Prime Minister Lee Hsien Loong.
That pact has been eight years in the making. Negotiations ended in 2014, but as protests mounted against other trade accords, such as one planned with the United States and one struck with Canada, the deal was sent for approval to the European Court of Justice.
Singapore and the Commission hope the agreement, which still needs the backing of the European Parliament, will take effect next year.
Australian Associated Press
