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German chancellor Angela Merkel and Chinas then vice-president Xi Jinping during a meeting at the Great Hall of the People in Beijing in 2012. As the worlds largest trading bloc, the EU is an important strategic partner for China. Photograph: Diego Azubel/Reuters

The emergence of China as a major global player over the last two decades has forced the international community to forge a response to the rising power.

But while much of the attention has focused on the deepening ties between the US and China as part of President Barack Obamas pivot to Asia, the European Union has also been stepping-up its engagement with China.

As the worlds largest economic bloc, the EU is an important strategic partner for China. It is Chinas largest trading partner, while China is the EUs second-largest trading partner after the US. Trade between the two regions equates to more than 1 billion a day, with China the main source of imports for the EU, mainly comprising Chinese industrial and consumer goods.

Last spring President Xi Jinping visited Brussels, the first official visit of a Chinese leader to the EU institutions. To many, it was an important sign of the Chinese leaderships prioritisation of Europe.

At an official level, Chinese-EU trade relations stretch back to 1985 when the first EU-China trade and co-operation agreement was signed.

Over the next decade or so, trade between the two blocs increased dramatically, with the relationship structured around regular bilateral summits and within the forum of the EU-Asean meetings, which celebrated its 20th anniversary this year.

On the European side, the aim is to gain better access to Chinese markets for EU investors. As EU trade negotiators have pointed out, despite the strong trade in goods, trade in services between the two blocs remains low, with China accounting for just 2 to 3 per cent of overall European investments abroad.

Among the EUs main concerns are the high level of government involvement in enterprise, protection rights for intellectual property and a lack of transparency, though recent indications from Beijing that it is to open up the market to foreign direct investment have been warmly welcomed by Brussels.

Despite the willingness on both sides to consolidate trade ties, the EU-Sino relationship faces significant challenges.

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European Union seeks comprehensive investment agreement with China