<p>The People’s Republic of China (PRC) has made solid progress in pursuing the high-quality development it urgently seeks, placing innovation at the core of its economic strategy. However, much like its initial technological leap during the reform and opening-up era—which was heavily reliant on technology imports—China continues to depend significantly on the West for (certain) advanced innovations and high-end technologies. This reliance helps explain why China remains committed to staying open to the global economy: as a source of raw materials, energy, and technology, and as a vital market for its manufactured goods. At the same time, Beijing is determined to avoid overdependence on foreign countries. This dual aim is reflected in the earlier ‘Dual Circulation Strategy’ (DCS), as well as in more recent concepts such as ‘new qualitative productive forces’ and ‘the country’s innovation system,’ highlighted in the ‘Resolution of the Third Plenum of the Twentieth Party Congress’ of July 2024. In light of this, the European Union (EU) has to contend with a PRC that is deeply nationalistic, proud of its economic achievements, yet also burdened by a faltering economy and a growing sense of strategic encirclement. Recognizing that both the EU and China have substantial stakes in each other’s sustainable growth and prosperity, this policy brief recommends that Brussels seize opportunities to renew dialogue and revitalize bilateral relations. Doing so could persuade Beijing that greater benefits lie in alignment with the EU than with alternative partners. Moreover, in a context of intensifying US-China tensions, reengagement with China may help preserve the functioning of global governance institutions and maintain the EU’s influence on the international stage.</p>