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Europe and China must continue talking despite disagreements, EU says

Josep Borrell holds a press conference after a meeting of a meeting of E.U. Foreign Ministers in New York

(Reuters) -The European Union and China must continue engaging on a number of issues despite differences, the bloc's foreign policy chief Josep Borrell told his Chinese counterpart Wang Yi in a video call on Tuesday, according to an EU statement.

"The High Representative noted that while disagreements still persisted, the EU and China needed to continue engaging intensively in a number of important areas," the EU said, adding Borrell underscored the inclusive and cooperative character of Europe's Indo-Pacific strategy.

China's foreign minister Wang said that both sides must continue the trend of increased engagement in an effort to boost political trust and manage their differences, according to a statement on the ministry website.

The EU is taking a softer stance on China, one of its most important trade partners, than the United States which has struck a new security deal (AUKUS) with Britain and Australia that is widely seen as designed to counter China's growing assertiveness in the Pacific.

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But critics said the agreement undercut U.S. President Joe Biden's broader effort to rally allies such as France to that cause after Australia ditched a submarine deal with Paris to buy U.S. submarines, infuriating France.

In a nod to the latest attempt to mend transatlantic ties, Borrell, according to a spokesperson, welcomed a joint statement by Biden and French President Emmanuel Macron in which they agreed to talks to rebuild trust after the submarine dispute.

(Reporting by Sabine Siebold; Additional reporting by Yew Lun Tian in Beijing; Editing by Cynthia Osterman and)