With its accession to the WTO, China has further integrated itself into the world economy, which is characterized by a market economy. Nevertheless, the Chinese economic system has not developed into a market economy with Western characteristics, but with state capitalism it has established its own form beyond market and planned economies. The resulting different behaviors (e.g. state intervention, subsidies, technology transfer) can lead to distortions of competition in international markets. Due to the economic weight of China, these distortions of competition have gained considerable relevance. The European Union can act at the level of trade, competition and investment policy in order to counter distortions and to strengthen competition on the same terms as possible.