China's Foreign Minister Wang Yi has called for closer cooperation with the European Union as the two sides look to overcome challenges in an increasingly important relationship.

Speaking virtually at the annual Munich Security Conference, Wang was joined by former EU foreign policy chief Federica Mogherini and Germany's ex-foreign minister Sigmar Gabriel.

The rare high-level dialogue focused on a key question facing both the EU and other Western nations – how to deal with the rise of China?

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Wang Yi said Beijing wasn't looking to pose a threat to the West, after a recent EU document called China a "systemic rival." 

"This is something we cannot agree with. As for what system a country may adopt, there's no one-size-fits-all model. Countries differ, in history, culture and social system."

Relations between the bloc and China have faced a series of challenges recently. Last week, the European Parliament voted overwhelmingly to put a China-EU investment deal on hold until Beijing lifts retaliatory sanctions on politicians and institutions in the bloc.

The issue centered on alleged human rights abuses in Xinjiang, which Brussels said was behind its targeted measures in March. But Wang once again denied the claims and said the move by the Europeans took Beijing by surprise.

"How is it possible for partners to put sanctions on each other? We were shocked and I'm afraid the EU sanctions were not firmly grounded in realities but based on so-called evidence. They were also not ratified by the United Nations, so were not legal under international law," said Wang.

Both Gabriel and Mogherini – considered former heavyweights in European foreign policy – raised the ongoing challenges around the sanctions and the potential for them to harm China-EU relations.

But there were also plenty of areas the participants claimed the two sides had to work together on – from combating COVID-19, to climate change and conflict resolution, as highlighted in the recent conflict between Israel and Palestine.

Mogherini also singled out cooperation on reviving the Iran nuclear deal. She was a key figure in negotiations among the so-called P5+1 group of nations that struck the Joint Comprehensive Plan Of Action in 2015.

And Gabriel, who was German foreign minister from 2017-18 said the West needed to understand the realities of working with Beijing. "Without considering China's contribution, one can no longer discuss global issues in the 21st century. 

"It's normal that one of the largest and most successful economies in the world, a country with 1.4 billion inhabitants is no longer satisfied with the role it played as a developing country in the post-war order of World War II," Gabriel told the conference.