This warmth in economic ties between Europe and China initiated especially after China’s accession to the WTO in 2001. Also with rapid change in China’s economy might, there has been dramatic change in perception of other continents and countries towards China. They understand this fact very clearly that without an efficient and mutual relationship with China, there will be several difficulties both in terms of political as well as financial. That is one important reason why European Union decided to focus aggressively on their financial ties with China.
In order to understand this relationship between two countries, it is important to analyze China’s position and how it started dominated world’s financial arena. China’s GDP rose by leaps and bounds between 2001 and 2010 when its GDP reached $6 trillion from $1.3 trillion. This resulted into replacement of Japan from its position as the second largest economy in the world. At the same time, China’s share of world GDP also displayed a significant change from almost 4% to 9% which analysts are predicting to double by 2020. If circumstances shape as predicted in future then there is no doubt that China will easily replace US as the world’s largest economy. This is only one part of Chinese dominance.