A Global China Policy

China, emboldened by the impact of the economic crisis on the West, is becoming a huge test for Europe`s foreign policy. If it doesn`t rethink its strategy, the EU will lose its already limited influence over Beijing. If it does, on issues ranging from climate change to the Dalai Lama, Europe can build coalitions with others affected by China`s rise, and take advantage of the few areas where it has real leverage.

• China`s assertiveness at the Copenhagen climate change talks achieved short term goals but endangered its long term interests, including the move towards a low carbon global economy. Europe can leverage its technological lead in this area and reach out to others alienated by Chinese tactics in Copenhagen, including Japan and key African countries.
• Iran`s nuclear policy is an immediate and urgent security threat to the EU, and it must make this clear to China. Beijing needs to understand its actions on Iran affect Europe`s core interests, and the EU can use carrots and sticks to achieve its ends.
• Mutual investment, technology and industry are the next focus of EU-China relations. As China seeks to hedge its own financial holdings, its investments in Europe should be both encouraged and leveraged against a more open European access to China`s finance, service and public procurement sectors. 

Europe needs to be consistent and persistent on human rights if it is to avoid China undermining its credibility on issues such as meeting the Dalai Lama. It must agree a minimal code of conduct on key issues and focus criticism on violations of China`s own laws and international norms, including the use of the death penalty.

These are the main conclusions of A Global China Policy, a policy brief by European Council on Foreign Relations China expert Francois Godement.

In September EU heads of government and foreign ministers will hold a major European Council meeting in Brussels to look at how the EU deals with strategic partners such as China. Europe`s leaders should waste no time in understanding how to get the most out of relations with Beijing.