Market opening talks between China and the European Union ended yesterday with no agreement, an EU statement said, dealing a blow to Beijing's hopes of joining the World Trade Organisation this year.

The EU sought to put the best light on the failure of four days of discussions, insisting it was not disappointed and that progress had been made.

Nevertheless, EU Trade Commissioner Mr Pascal Lamy had joined the talks to provide the high-level political push needed to drive through an agreement bogged down by technical disputes over access to China's huge markets in telecommunications and financial services, including insurance.

Mr Lamy said in a statement that the talks had been "held in a constructive spirit, with positive movement on both sides resulting in a certain narrowing of differences on the outstanding issues under negotiation".

But he said: "Conclusion of a bilateral agreement was not possible at this stage."