Europe's economic troubles have forced it to continue looking to China for financing. But Beijing, which is thought to hold up to 30 percent of its reserves in euros, is driving an increasingly hard bargain.

Working out what Beijing really thinks about the euro crisis is not easy. There are Chinese voices warning that buying the debt of troubled European states is "throwing good money after bad," but others know that China cannot pour its money solely into the dollar. Ultimately, Beijing’s attitude to the euro will be determined by China’s own internal economic logic.

In a response to José Ignacio Torreblanca's recent article, 'Five reasons why Europe is cracking', Francois Godement argues that Europeans do have a chance to tackle the current malaise, but only if they search hard and identify the real causes of the continent's woes.

China's huge currency reserves, and the indebted West's need for them, have created a new game. The object for Europe is to secure investment from Beijing, while also attempting to see through the veil of secrecy to find out exactly where the Chinese are spending their money. 

For Chinese leaders who lived through 1989, events in the Middle East are bringing back worrying memories. But the Arab revolutions could also present an opportunity for Beijing to increase its influence in the region.

The Chinese authorities are watching events in Egypt with concern: faced with an urban protest movement in an economically-growing nation, the Mubarak regime used tactics from Beijing's book, to no avail. But China also has advantages in the race to woo the emerging Arab democracies.

Eight trends to watch out for in the Year of  the Rabbit: ECFR's China experts cut through the buzz of news and comment to highlight key trends and debates that could define China’s future relationship with Europe and the world.

North Korea's attack on Yeonpyong Island last week, and reaction to it from Seoul to Washington, highlighted the power shift that has taken place within Asia. Arguments that the shelling represented a "last gasp" by Kim Jong-il's regime are wishful thinking, and events on the Korean peninsula can no longer been seen in isolation from the complex balance of power in the region.

Europe is playing for big stakes at the G20 in Seoul. The summit is not just about opening up to the major emerging economies, but about how the West - including Europe - deal with the challenges of staving off the economic crisis and reconfiguring international institutions.

A trade deal with South Korea proves that Europe can get things done when it wants. So why is the EU's policy with China such a puzzle? Perhaps it should learn from Germany, which is showing how to talk tough to Beijing while still achieving its aims.

On Wednesday Brussels hosts an EU-China Summit. Will Europe be able to take advantage of the opportunity? Or will it lack a real sense of urgency, like the Chinese Qing court in the middle of the 19th century, and see the rest of the world move on without it?

Could the dream of a “G3”  between the EU, China and the US ever become a reality? Or will the EU remain in the sidelines? Francois Godement argues in a piece for Le Monde that to avoid irrelevance, the EU needs to decide what it wants from China. (article in French)