During the last decade, China has become a major global economic and political player. China's economic development has been extraordinary; with average annual GDP growth rates close to 10%, it has become the third largest exporter globally.
Nevertheless, the GDP per capita numbers underline how far China's standard of living is still lagging behind and how far distant the goal of a "well-off society", emphasising a more social and environmentally friendly path to development, still is.
In line with China's economic rise, the country has come to occupy a prominent place on the EU policy agenda.
China is now the EU's second most important trading partner, after the US, while the EU has become China's top trading partner.
This report will first analyse what forces have been driving China's current development. The second part will try to identify how China will evolve in the future and what challenges to its long-term sustainable development for the EU and its policy stance.
It conclude with recommendations for an EU policy on China.