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In the closing days of 2009, as European economies slowly return to growth after the financial crisis, China’s continuing resurgence is a beacon in a grey economic landscape. The country has emerged from the financial turmoil relatively unscathed, and shows a new assertiveness and strong desire to participate in shaping the rules of a more multi-polar world.

Thirty-one years after it began liberalizing its economy, China has become an economic powerhouse. But a heavy reliance on export-led growth is only now being complemented by more emphasis on production of goods and services for its domestic market.

Tensions with trading partners remain, over the strength of its currency, the Renminbi, and the size of its current account surplus, expressed in part by the emergence of sovereign wealth funds that seek better returns on its foreign currency holdings as yields on US Treasury bonds are undermined by the dollar’s weakness.

These factors point to a rapidly-changing relationship with the European Union, a key trading partner whose companies account for 40 percent of China’s exports.EU policy-makers must identify areas of common interest not just with today’s China, but with China as it will be in the decade ahead.