THE last few days have provided much-needed respite from the crisis-hit eurozone as I travelled to Taipei and then to Beijing for discussions on China’s dazzling rise and its far-reaching repercussions on the region and the world. China looms ever-larger on the global landscape.

In Taiwan, the conversation is almost entirely about improving cross-straits relations and Taiwan’s determination to share in the mainland’s dizzying development. Chinese tourists are flocking to Taiwan even as businessmen from Taipei invest millions in China. Taiwan and China signed the Economic Cooperation Framework Agreement (ECFA) last year, reflecting Taiwanese President Ma Ying-jeou’s policy of seeking closer ties with the mainland.

Taiwan and China have opened direct shipping, postal and air links and also concluded an arrangement that last year allowed 1.2 million mainland tourists to visit the island. Increased cultural and economic ties have pleased many Taiwanese business leaders but have also stoked anxiety among those who view such inducements as an attempt to ensnare Taiwan into China’s increasingly domineering economic orbit.

As it grows in stature, economic power and political clout, its markets, exports and investments driving economic development in Latin America, Africa and neighbouring Asia, China fascinates and intrigues. It also stirs fears. China-watchers worry that its impressive growth and development will make the country hungry for more and more resources, leading to confrontation with neighbours and tensions with America and the European Union.

Asians, Americans and Europeans worry over China’s rising military spending, its tough stance on long-standing territorial claims in the East and South China seas and its refusal to countenance political dissent. Western businesses in China have a long laundry list of demands which they say Beijing must meet to facilitate their presence in the country.

I hear repeatedly that China is losing the will for further economic reform and liberalisation. European business leaders fret over the country’s patchy protection of intellectual property rights and tough government procurement rules, saying China is either stealing foreign technology or forcing foreign firms to share their know-how with Chinese counterparts before allowing them to do business in the country. There are accusations that China is manipulating its currency to maintain high exports.

The mood in Europe meanwhile is confused. During his recent trip to Europe, Chinese Premier Wen Jiabao signed 14 new agreements and new business deals worth 15bn euros, including the purchase of 62 new Airbus A320 passenger jets. Prime Minister Wen and German Chancellor Angela Merkel used the term ‘a new chapter’ to describe their deepening relationship.

German officials admit that their country’s economic boom is in large part thanks to China, which is now its third largest trading partner after France and the United States. In China, the country’s officials tell me Germany has been a “strong and reliable partner” for years, investing in the country with a long-term vision and selling products which are loved and recognised by Chinese people.

Prime Minister Wen has also repeatedly voiced support for the euro, boosting the credibilty of the battered single European currency while China buys up government bonds in Greece, Spain and Portugal. For some, this is dangerous: ‘China is taking over Europe’, accuse some arguing that if Spain or Poland want to build a highway, Chinese firms can bid for the contract — which they do, often successfully. But European firms, with limited exceptions, can’t do the same in China because its government procurement rules favour Chinese firms.

The reality is, of course, more complex. Chinese colleagues I meet in Beijing say they are taken aback by the ‘trust deficit’ in their ties with Europe, and the accusations that China is on the warpath, out to conquer the world. My Chinese friends insist their country’s intentions are good and that their leaders — including the new ones poised to take over next year — are too focused on China’s future to worry about taking over Europe or America.The greatest concern is ‘social stability’, they say, pointing out that while the world is focused on the glittering cities on the country’s coastal regions, Chinese leaders worry about the development of the poor hinterlands, the regional disparities, the gap between the rich and poor and the divide between urban and rural populations. With millions of rural immigrants making their way into cities every year, the government is focused on providing housing, jobs, education and other facilities to its people. Pension schemes, schools and healthcare facilities are still being built.

“Why is Europe so impatient when dealing with China?” a Chinese friend asks. In fact, I have no answer. Clearly, as China has become one of the largest economies in the world, the rest of the world needs to gain a better understanding of what makes the country tick. Europe, grappling with its own economic crisis and other demons, does not have the self-confidence needed to deal with rising China, my Chinese friends tell me.

It is true that the China-EU relationship remains awkward, uncertain and subject to sudden ups and downs. In the past 25 years, Beijing and Brussels went through a short but intense honeymoon period in 2004, but issues over Tibet and human rights still need to be discussed. In today’s globalised world, however, global problems like climate change, energy and food security cannot be tackled without consulting and cooperating with China.

It is clear, therefore, that at the start of the second decade of the 21st century, Europe and China should discard past clichés and take a fresh look at each other. Failure to do so will hurt both sides — Europe appears more vulnerable.

The writer is Dawn’s correspondent in Brussels.