Greater role to play on world stage

In spite of active communication and dialogue, he says it is not easy for the older powers to accept losing influence in global governance.

"No, they will not naturally accept the new powers at the table," Erixon says. "But do you want a China with a developing country's mentality, keeping a low profile and tied down by transitional policy, or do you want a China whose international leadership will reflect its economic position?

"I don't think many European countries have come up with an answer to that question."

Erixon says it is normal that a growing power like China is going to bring changes to the existing practice and system, and the established powers will react in positive and negative ways.

"But I think Chinese, US and European leaders should think about how we want to change the international system, to reflect not only the changes in China but also the changes around the world in the past 30 years," he says.

He thinks the changes are harder for Europe to accept than other powers.

First, it is more difficult for Europe to understand any government in the world in terms of strategic national interests - something the European Union is trying to play down among its member nations to heighten cooperation.

In order to maintain peace and prosperity in Europe, a country should back away from strict interpretations of national interest.

"That leads to endless debate about political issues," says Erixon. "I think this is the first problem. Other countries, especially China, now do not meet a Europe that is prepared to have a solid, rational consideration about power and prosperity."

The US understands the language of power in a different way to Europe, he says.

Second, when looking at international organizations, they are post-World War II institutions created to manage Europe.

"Europe always thinks these institutions belong to us," he says, but now they are challenged by the change in the world's economy, which should be reflected in the way the institutions are managed.

"The problem is they cannot let go of the ideas. These institutions were created to solve our problems, and now we have to create institutions to solve others' problems as well. That's where we are."

He says it is interesting that the IMF has changed the quotas of voting rights and the share of resources, but European governments are being defensive and don't want to give away power. At the same time, Europeans travel to Beijing asking for investment and help to bail out struggling sectors and companies.

"This is what Europe understands, that the world has changed but they are not prepared for it," Erixon says.

China's determination is important in facing these difficulties, Erixon says.

China is developing its own story and it must have its own political narrative of what it wants these institutions for, he says. And if it doesn't have those ideas, it is difficult for other countries to let China become a new global leader.

He says a good strategy for China is to spend less time thinking about what other countries think, and about what these institutions want from China; it needs to take decisive action, starting with trade and currency.

While designing and implementing its own domestic agenda, China should have dialogue with the WTO and the IMF in the coming years.