This article discusses the main determinants of the European Union’s strategic engagement with China with reference to three theoretical claims: an institutional perspective, a values-based approach, and a realpolitik dimension. It examines the utility of each theoretical position, and outlines complementary and diverging essential characteristics amongst them. This is conducted with the aid of empirical evidence from long-standing points of interactions between the EU and China over the last three decades. These include, the EU’s arms embargo with China, EU-China competition in Africa, and the EU’s position on designating market economy status to China. This analysis can reduce the misunderstandings and uncertainties embedded in the contemporary EU-China relationship.