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Europe needs to take a leaf out of Australia's book on how to handle a more aggressive and coercive China, a European parliamentarian says.

German politician Reinhard Butikofer, a member of the European Parliament and chair of its China delegation, has expressed regret that Europe didn't take a stronger stance when China tried to economically coerce Australia.

"I have regretted that when China tried to coerce Australia, economically, there was not enough of a vocal reaction from Europe," he told an Australian National University security podcast.

"When some of our friends in Washington in the (National Security Council) will tell us what to do, we would say: 'You shut up. We don't need your advice, we'll learn from Australia'.

"The Australian approach was very smart and very adequate. It was country agnostic, but it set clear criteria and that's what we tried to do also in Germany."

Mr Butikofer said Germany, and Europe more broadly, would likely take a stronger stance if the same circumstances arose today.

"If the same happened anew today, it might be different," he said.

"Because in the meantime, we have ourselves experienced similar coercive policies in the case of Lithuania, where the Chinese have dared attacking the holy grail of the European project."

The German politician also accused China of trying to drive a wedge between Europe and the US by accusing nations critical of Beijing as simply spurting Washington's lines.

China has also leveraged its political capital to try to quell dissent by withholding international co-operation in the face of criticism, he said.

"When they reacted to the Taiwan with a visit of (US Speaker) Nancy Pelosi, they announced they would cease for the time being co-operating with the US on climate change," he said.

"It's the first case that we know that a country tries to use climate change policy as a tool for political coercion."

Mr Butikofer believes a conflict in Taiwan isn't a fait accompli following Russia's invasion of Ukraine, despite the strong ties between Beijing and Moscow.

The war in Ukraine could have been prevented if the West had provided a stronger stance, which is what could prevent China moving against Taiwan, he says.

"The war in Ukraine could have been prevented. Our response to Putin's rhetoric and aggressive acts, was not strong enough to discourage him," he said.

"I don't believe that war over Taiwan is inevitable.

"But that means that China has to be told in very clear terms the price they would pay - politically, economically - for such an adventurous military trajectory would be extremely high."

The West needed to keep one eye on China as Russia continues to wage war in Ukraine, Mr Butikofer added, saying both nations were pushing to be at the top of the global order.

"I would argue, as much as Ukraine is central for Putin ... Taiwan is central for Xi Jinping's dream of the so-called rejuvenation of the Chinese nation," he said.

"China is pursuing a revisionist agenda in co-operation with Putin's Russia that wants to overturn a rules-based (order) ... and turn it into a China-centric, authoritarian, big power policy kind of arena."

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