* Ambassador says China will open public tender markets
* China is very worried about EU protectionism, envoy says
* Envoy: yuan rise won't end imbalances, could hurt EU firms
(Adds details, background)
By Juliane von Reppert-Bismarck
BRUSSELS, Dec 2 (Reuters) - China's envoy to the European Union struck a conciliatory tone in a row over public procurement on Thursday, but warned the EU against growing protectionism in the bloc.
Speaking to deputies at the European Parliament, Ambassador Song Zhe said Beijing would address EU concerns about a lack of access to Chinese public works contracts.
"Premier Wen (Jiabao) has promised we will make steady steps to make improvements in these areas and for foreign businesses to grow in China. We will fulfil what we have promised," Song told the trade committee of the European Parliament.
European firms' frustrated attempts to enter the lucrative public tender market of China -- valued at about 10 percent of China's GDP -- have prompted EU warnings of reciprocal market closures across the 27-nation bloc.
Song warned Europe against rising protectionism. Reeling from economic crisis, Europe has recently launched a range of defensive measures against cheap Chinese imports.
"We are very much worried about the increasing number of trade protectionism and antidumping measures adopted by the European Union," Song said, speaking through an interpreter.
The EU and the United States, among others, have accused China of keeping its currency artificially cheap, which has resulted in global trade imbalances and undermined their own industries.
While China says it is committed to reforming its currency, it insists it alone will decide how this is done.
"It is not objective and it is unfair to put the blame of domestic unemployment ... on the undervalued renminbi," Song said. "The appreciation of the renminbi cannot help address global imbalances."
Song told the EU legislators China would push ahead with gradual currency reform, but that any sudden change would undermine the profitability of European firms operating in China, where their operations outperform those in OECD countries.
He also emphasised China's willingness to help the EU overcome its economic downturn.
"China has stood by the side of Europe to tide over the difficulties. Our support for Europe is mutually beneficial and win-win," he said.
"We cannot save the European Union in absolute terms but we are willing to contribute our own share."
Responding to foreign demands and internal economic reforms, China will further open its markets to foreign participation in the booming services sector including finance, education, health care, IT and sports, Song said.
"The important thing ... is to continue to reform and open up. We encourage our friends in Europe to have more patience." (Reporting by Juliane von Reppert-Bismarck, Editing by Rex Merrifield and Jon Boyle)