The Atlantic Era is now at the height of its development and must soon exhaust the resources at its command. The Pacific Era, destined to be the greatest of all, is just at its dawn,” wrote US- President Theodore Roosevelt in 1903. A century later, half of the world population lives in Asia, which may well be the most dynamic economic region today. China’s stunning ascent from a developing country to an economic superpower in only thirty years lifted millions of people out of poverty. Favoured by globalisation processes, China today is a heavy-weight in global economics and finance and its impact on world politics is increasingly felt.
 
For years, the West insisted that economic power comes with shouldering a responsibility for the international community and called on China to become a “responsible stakeholder”. In recent months, the signs have been growing that China does not only want a seat at the top table, but also a say in setting the rules. Some observers are worried about what they see as China's increasingly confrontational stance.
 
In the wake of the Copenhagen Conference, China, the world’s biggest polluter, has been widely accused of blocking a global climate agreement. China’s dispute with Google is not only making headlines, but fuelling doubts about the future prospects of democracy and freedom of expression. Nor does China show any sign of compromise when it comes to handling dissidents. Academic Liu Xiao was sentenced to 11 years in prison for “inciting subversion” only last December, a decision the EU deeply regretted. The headlines in recent months were dominated by the wrangling over the Yuan, US-arms deals with Taiwan; Barack Obama’s meeting with the Dalai Lama, and the question of sanctions against Iran.
One can not help but notice that most of the action is happening in US-Chinese relations. China's growing economic power will convert into political and military power, too. If Europe does not want to be relegated to the fringes and to left as a spectator in "the Pacific Era", a world dominated by the G-2, the United States and China, it must get its act together. As Cold War experience taught us, a bi-polar world is inherently dangerous. A multi-polar world promises to be more stable, and Europe is the most likely candidate to balance the US and China in a G-3 constellation.
 
The European Union established relations with China as early as 1975 and they are still governed by the EU-China Trade and Cooperation agreement of 1985. Negotiations on a Partnership and Cooperation Agreement began in 2007. The main objectives of EU policy towards China are to broaden and deepen the dialogue, especially when it comes to global challenges, to support China's transition to an open society based upon the rule of law and respect for human rights, to encourage the ongoing integration of China into the world economy and trading system, and to support the process of economic and social reforms.
The European approach to world politics is one of "soft power". As Socialists and Democrats, we believe in dialogue and engagement. Willy Brandt's new Eastern policy during the Cold War, change through rapprochement, has proven to be very effective and should guide us in our thinking towards China. No one stands to gain from containment or conflict. China and Europe are mutually dependent economies. As the world's largest exporter, China has an inherent self-interest in a stable world order and trading system.
 
Europe should approach China on an equal footing. Trying to placate China and giving too much ground in negotiations tends to be interpreted as weakness. On certain issues such as human rights and intellectual copyrights, Europe needs to stand firm. However, Europe does not want to be perceived as "lecturing", because Beijing generally considers this to be condescending, or even insulting.
 
These days, China is trying to come to grips with its new status and with a new world order, one which Beijing increasingly wants to shape. In an interview David Miliband referred to China as "the indispensable power", whose "indispensability in part comes from size, but a second part is that it wants to play a role." Europe on the other hand wants to see China share the burden and become a responsible stakeholder in global governance. Opening up the G-8 to the G-20 was a first step in the right direction. And there are hopeful signs pointing towards constructive cooperation: since Copenhagen, China has restated its commitment to achieve a 40-45% reduction in carbon emissions by 2020 compared to 2005 levels. It also looks more likely, that China will finally agree to sanctions against Iran.
 
A world in which the EU, the USA and China work together to meet global challenges such as re-launching the global economy, fighting climate change, energy and resource security, food security and fighting nuclear proliferation promises to be a more stable and peaceful international order. The road to the G3 may be filled with stumbling blocks and potholes, but in the end the United States, China and Europe stand to gain everything from co-operation The G-3 might well be the most important relationship of the 21 century.