The main challenge for China-EU relations lies in the lack of trust produced by Europe's "double standards", China's vice minister for foreign affairs Fu Ying said here on Saturday.

"The main challenge is the problem of trust, of suspicion of each other, of political rejection," Fu said in a a debate on EU-China relations at a conference in Slovenia's lake resort of Bled.

"For many Europeans China is politically incorrect but, at the same time, it is economically correct," Fu said, speaking in English. "I do not know how that logic works, how can an incorrect political system produce correct economic results?"

"There are still a lot of remaining stereotypes of the Cold War. People have difficulties accepting that there is a political correctness in China," she said.

"Let's remove the unnecessary hurdles, the stereotypes, you do not know how much that is hurting your image in China," she warned.

Referring to Chinese Premier Wen Jiabao's visit to Britain in June, Fu said British Prime Minister David Cameron had warned that "only with improved human rights the economy can be more stable."

"Chinese people are all puzzled: obviously, the British economy is not stable," Fu said, referring to the August unrest that affected London. "You (the West) have double standards."

The European Union has criticized China on a wide range of alleged human rights violations, including the treatment of Tibetans, religious freedom and extra-legal detentions.

China is the European Union's second largest trading partner behind the United States and the biggest source of imports by far. The EU is also China's biggest trading partner.

"Europe does not recognize China as a market economy, but Europe is our largest trade partner, how can it be with a non-market economy?" Fu said.

"The EU cannot expect all states to meet all its standards... we are not applying for EU membership, we are only a trading partner," she added.