The European Union(EU)is entrusted with the task of developing a common foreign and security policy in order to both protect its interests and values as well as to play a constructive role in world affairs. The increase of the relative weight of the People's Republic of China (PRC) in the world economy will considerably reinforce the PRC's overall weight on the international political scene. To keep the EU in its major role on the world stage, it is imperative to take into account the emergence of this new Asian power. On July 15, 1995, the EU adopted a long-term policy for China- Europe relations (COM [95]279). The EU further initiated a strategy for building a comprehensive partnership with the PRC on March 25, 1998 (COM [98]181). In these documents, the Commission emphasized the economic and political significance of the PRC and reaffirmed that the EU and its member states wish to strengthen cooperation and dialogue at all levels with the PRC. In this context, this paper reviews the theme of the EU's new China policy, with special reference to trade relations. The meaning, scope, impact, and development of the EU's new China policy will also be discussed. In conclusion, the author sets forth several general suggestions for EU trade cooperation with the PRC.