Letzte Aktualisierung: April 21, 2021

Study: China's home advantage threatens Europe's economic power

The protected domestic market is an ideal growth and innovation environment for Chinese firms. When they enter the global market, they have massive advantages, warn think tank ECFR and Rhodium Group in a joint study. Sectors such as solar, rail networks, and telecommunications are particularly threatened by Chinese competition. In the paper, the analysts point out concrete solutions on how the EU Commission can act against China's home advantage.

A catchphrase when it comes to the China-EU Investment Agreement (CAI) is "level playing field". The CAI is supposed to guarantee European companies (better) access to the market in China. However, in its trade policy with the People's Republic, including the CAI, the EU Commission has so far ignored an important point, warns the think tank European Council on Foreign Relations (ECFR) in a study prepared jointly with the Rhodium Group: The extremely protected and huge Chinese domestic market has allowed firms there to grow, make profits and improve their product quality simply because of the size of the market – with little or no pressure from foreign competitors. In turn, the firms that grew up in China could tackle the market abroad. The study's authors warn of "serious consequences" for several sectors that are crucial to the EU's future.
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