China last week pulled out of the summit scheduled for Lyons on Monday, blaming French President Nicolas Sarkozy’s decision to meet the Dalai Lama, the exiled Tibetan Buddhist leader reviled by Beijing for demanding self-determination for his homeland.

Sarkozy’s planned meeting on Dec. 6 has enraged China’s leaders, who are raising pressure to deter the Dalai Lama’s frequent unofficial meetings with Western leaders.

But experts said that even after this quarrel blows over, China’s willingness to cancel highlights deeper failings that may distract from efforts to resuscitate the international financial system and stalled global trade talks.

“This decision effectively was made because China doesn’t place much value in Europe any more,” said John Fox, a former British diplomat in Beijing who now works at the European Council on Foreign Relations in London.

“It shows that still at this time of grave financial crisis, China is more willing to have a tantrum over Tibet rather than talk to its biggest trade partner, and that must be a worry.”

Both sides can be baffled by the other’s murky ways. The EU round-robin of multiple bodies overseeing 27 sometimes sparring national governments makes for messy negotiations. China has increasingly turned to rival national governments to press its demands, which can be both unyielding and vague.

Overcoming these malfunctions requires policy surgery on both sides, said Fox, whose think tank is preparing a critical report on EU-China relations to appear early next year.

“This again shows that Europe having dialogues ad infinitum with China doesn’t substitute for clearer policy on China, which is clearly lacking,” he said.

China’s policy-making can also cause head-scratching. Not a week before China called off the summit, Vice President Xi Jinping said ties with Europe were better than ever.

“China-EU relations have entered their most vibrant and fruitful period,” Xi told a visiting Slovakian politician on Nov. 21, according to the official Xinhua news agency.

Such rosy talk has been customary for China-EU dealings, and several years ago Beijing indeed hoped a growing and increasingly united Europe could be a sympathetic counterweight to Washington.

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