He stressed that with changes in the international situation and respective development in China and the EU, the bilateral ties also face some new challenges, such as trade imbalance, and more recently the issue of Tibet.

"Some of these issues arise in the process of development when interests merge and meet each other. Others are due to lack of a full understanding and mutual trust," he explained.

He warned that if not appropriately and promptly handled, these problems might produce negative impact on the healthy and smooth development of China-EU relations.

To ensure a healthy and smooth development of the Sino-EU comprehensive strategic partnership to the benefits of two peoples,he proposed that both sides always consider and manage such relations from a "strategic perspective," always aim to further deepen cooperation in all fields, and always handle differences and disagreements properly.

He pointed out that China and the EU are different in history, culture, ideology, political system and level of economic and social development. "It is only natural for China and the EU to have some disagreements or even frictions."

"As long as we conduct dialogue and cooperation in the spirit of full equality and mutual respect, and respect each other's major concerns, China-EU relations will surely be able to develop in a sound and steady manner," he said.

In his speech, Song also expressed his gratitude to foreign countries for their assistance and aid efforts for earthquake victims in Sichuan, southwestern China.

He said China had taken rapid and most orderly and effective disaster relief efforts in the aftermath of Monday's devastating earthquake, which was registered 7.8 on the Richter scale and has killed around 20,000 people.

The Chinese government has warned that the final death toll from the quake could be around 50,000.

(Xinhua News Agency May 17, 2008)