The book focuses on issues on bilateral relations between the EU and China and evaluation on the impact of China's tariff changes on the two economies with a CGE model. Through analyzing the statistic data and relevant document, we find that for the EU, China seems to be the most important partner in Asia and predominant interests of Europe in China are in the domains of economics and politics. Economic relations are thought to be far more important for both the EU and China than other sensitive issues such as human rights. Meanwhile, using a CGE model, we find that China's tariff reduction seems to impact the Chinese economy stronger than the European economy, and China's textile and apparel industries are the biggest winners whereas the motor vehicle and parts industry is the biggest losers with China's trade liberalization.