This article takes a liberal institutionalist, neo-realist and social constructivist perspectives, to analyze bilateral relations between the EU and mainland China, as well as the European Union's policies towards Cross-Strait relations and Taiwan. Currently, the European Union is not only a trading partner of the mainland, but a common development partner. The bilateral relation between the two is rather close. Moreover, Beijing can play off EU countries against each other to expand its space for cooperation with the EU. The EU would not oppose the issue of Taiwan's unification or independence as long as the process proceeds peacefully. The EU has only limited influence on this issue and intends to support US dominance in this area, because the interests of the US and the EU in this respect are close.