(BRUSSELS) - The European Union is "watching very closely" WTO consultations between Washington and Beijing over copyright piracy and is demanding "results" from the Chinese, a European Commission spokesman said Wednesday.

Commission spokesman Peter Power said the EU had joined the US case against China at the World Trade Organisation as an observer, as several other countries had done.

"We are watching very closely. This is of enormous importance for the EU as for the US," Power said. "Consultations must yield results now."

Last month, the United States formally lodged a complaint against China at the World Trade Organisation over copyright piracy, with fake DVDs and counterfeited luxury goods adding to existing tensions between the trading giants.

Consultations with Beijing are under way with the aim of resolving the dispute, but if they fail a WTO panel could then be requested to referee the matter.

"It's up to the Chinese to reassure the parties that the issues at stake are going to be dealt with in a way that will not necessitate a full WTO panel," said Power.

With counterfeit DVDs and luxury goods widely available on the streets of Chinese cities, China's position on intellectual property rights is increasingly becoming a source of tension with its main trading partners.

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