China's economic downturn 'vastly overstated': report

For Eastern Europe, it would be mostly positive, due to lower primary prices and cheaper consumer products from China.

The effects for Germany may turn out to be negative as the country relies on China as an export market.

As for southern European economies, including France, the price deflation may well increase their relative debt burden.

"There will be losses but they will, in the main, be limited in scope, although exporters to China or those with high public or private debt levels may feel the effects very sharply indeed," Godement said.

Instead of a crisis, the expert said China's economic transition would be an "opportunity" for European counties.

The expert said some more liberal economies -- chiefly, Britain and Sweden -- and Eastern European economies were right to seek China as a main funder of infrastructure projects, albeit with Chinese suppliers.

"The terms for long-term financing have never been so good; China's supply prices, thanks to deflation and excess capacities, are becoming almost unbeatable; and the quality gap with Western supply has decreased in all but the very top technologies," the report said.

The report also said the turn in China's economy towards services and the changing trends in consumption would facilitate investment or free-trade negotiations between China and the European Union.

"A deal whereby Europe would participate more in China's new economy while opening itself to the older Chinese sectors seems like a win-win proposition," the expert advised.