The EU’s policy toward China on trade and investment has increasingly focused on goals defined in terms of “reciprocity” and a “level playing field”. At the same time, Germany, France and other EU member states seek to achieve similar goals in order to “rebalance” their unfavourable economic relationships with China. The EU and these leading member states therefore seek to leverage their relations with China to bring about rebalancing, based on the argument that EU companies are losers in their relations with China. However, at the economy, and also strategic sector and company levels, despite barriers that may exist in China, the EU is already deeply interdependent with, and even dependent on, the Chinese economy. This dependence will have consequences for the EU and member states in achieving their declared aim of rebalancing the economic relationship with China, both bilaterally and globally. While they have a common interest in reciprocity members states have a national interest in maximizing national gains derived from access to China. This replicates historical patterns of relations between Europe and China. Furthermore, the interdependence with China has become so important that is embedded in and impacts on the structure of the EU political economy. Rather than an external actor, China is increasingly internalized in the EU political economy.