Abstract
This article provides an overview of the challenges that the EU is facing due to China’s re-emergence as a global economic power. For this purpose, the negotiations for a financial investment agreement provide a backdrop for a discussion of the benefits and disadvantages of closer cooperation with China. The article discusses the contents of the negotiations, the parties involved and the dialogue formats. Moreover, it identifies obstacles to reaching a successful agreement. Based on the analysis, three policy measures are defined that would lay the foundations for a coherent and successful European response to the challenge of a rising China.
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Notes
In this article, the term ‘China’ refers to the People’s Republic of China.
To be considered a 'market economy', a country must have a ‘floating exchange rate, a free market, a non-intrusive government, effective business accounting standards and, lastly, a clear definition of property rights and bankruptcy laws’ (Bendini 2014). All WTO members are allowed to treat China as a 'non-market economy' until 2016 as part of China’s WTO accession protocol. The main feature of this is that it often makes it easier for the EU to impose duties and apply higher anti-dumping rates.
Both parties have recently settled three major trade defence cases (solar panels, wine and polysilicon) which had poisoned bilateral trade relations during the last year.
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Barth, B. China’s re-emergence as a global economic power: How should Europe respond?. European View 13, 233–241 (2014). https://doi.org/10.1007/s12290-014-0331-5
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DOI: https://doi.org/10.1007/s12290-014-0331-5