Europe’s trade deficit with China has widened sharply, but sectoral evidence does not support the usual claims about dumping, trade diversion, or a weak renminbi, latest CF40 research shows.
Useful framing of the EU-China trade relations. I'd suggest three takeaways:
- the EU "green transition" has a lot to answer. Both on the transition away from European competencies and industrial capacity. The EU will likely need to choose between virtue and sovereignty.
- the import substitution in China was not an accident. It was intentional China 2025 policy. This likely cannot be undone, so will probably impair any opportunity for balanced trade.
- the idea that products produced in China by EU companies are somehow more appropriate for importing into the EU is not likely to survive.
So, the real question is not who's to blame for the imbalance, it's what can the EU do to protect itself from further de-industrialization. Unfortunately, I don't think China is part of the answer.
It’s so nice to see Chinese think tanks producing such high quality analysis similar to American think tanks like the Petersen Institute. Thanks for passing on to your readers.
Useful framing of the EU-China trade relations. I'd suggest three takeaways:
- the EU "green transition" has a lot to answer. Both on the transition away from European competencies and industrial capacity. The EU will likely need to choose between virtue and sovereignty.
- the import substitution in China was not an accident. It was intentional China 2025 policy. This likely cannot be undone, so will probably impair any opportunity for balanced trade.
- the idea that products produced in China by EU companies are somehow more appropriate for importing into the EU is not likely to survive.
So, the real question is not who's to blame for the imbalance, it's what can the EU do to protect itself from further de-industrialization. Unfortunately, I don't think China is part of the answer.
This is well documented and insightful.
It’s so nice to see Chinese think tanks producing such high quality analysis similar to American think tanks like the Petersen Institute. Thanks for passing on to your readers.