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Jan 20 (Reuters) - China faces foreign policy challenges this year that will be made more complicated by the global economic downturn, which analysts say may present Beijing with opportunities to be more assertive but also unwelcome pressures, especially over trade. Here are three key diplomatic issues facing China:
THE UNITED STATES
Beijing's dealings with new presidents in Washington have often been troubled, and some fear the same under Barack Obama. Many Beijing experts believe trade disputes could be the focus of contention with Washington. But most also believe friction over China's trade surplus will be held in check by economic inter-dependence between the two powers and by U.S. preoccupation with other concerns.
JAPAN AND NORTH KOREA
Two of China's touchiest diplomatic challenges are in its own neighbourhood. Beijing and Tokyo have forged a striking improvement in ties since 2006. But mutual distrust still runs deep, and recently the two sides have again been at odds over Chinese drilling of undersea gas reserves, which Japan says could drain beds under East China Sea waters that it claims.
Japan and other regional powers are also likely to look to China to pressure its neighbour and long-time partner North Korea over its nuclear weapons ambitions.
Talks aimed at ending Pyongyang's nuclear ambitions have stalled. North Korea has issued threats to South Korea and last week told a visiting U.S. scholar that it has "weaponised" enough plutonium for four to five nuclear weapons.
EUROPEAN UNION
China's relations with the European Union are strained after Beijing abruptly pulled out of a summit between the two sides that was scheduled for December. China's was enraged by French President Nicolas Sarkozy's meeting with the Dalai Lama, the exiled Tibetan leader condemned by Beijing as a separatist.
France has now handed the six-monthly rotating presidency to the Czech Republic, to be followed by Sweden in the second half of the year. Czech officials have indicated they have no plans to meet the Dalai Lama in coming months, easing possible antagonism with Beijing over that issue. But trade frictions and mutual frustrations over cumbersome decision-making are likely to continue frustrating relations between Beijing and Brussels.
(Editing by Dean Yates)