Western – especially European – China policy faltered less because engagement was wrong than because it was pursued with naïve assumptions, short horizons, and fragmented execution, while Beijing played a long, sovereignty-first game. China plans in five-year cycles and decades; Europe too often plans by quarter and electoral calendar. Companies, for their part, should disclose concentration risks, rehearse contingency plans, and coordinate with allies’ authorities so that private adaptation and public policy reinforce each other. Europe’s China reset will succeed if it becomes a habit. Respect where possible, firmness where necessary, and solidarity as routine rather than headline: that is the essence of calm realism.