China’s focus on the supply side to drive economic growth is creating problems in Europe

EU Chamber of Commerce in China president Jens Eskelund says:

• “It is hard for me to imagine that Europe will sit by quietly and witness the accelerated deindustrialisation of Europe because of the externalisation of low domestic demand in China”

he’s correct, it doesn’t take much to get Europe to slap tariffs on.

The quote comes from a South China Morning Post piece (gated)

• EU chamber warns of ‘slow-motion train accident’ with China, says something needs to change

In brief:

• China’s focus on the supply side to drive economic growth is creating problems in Europe, according to the European Union Chamber of Commerce in China
• Honest conversations are needed, while China should steer away from excessive self-reliance to create a more sustainable environment for foreign businesses

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The background to this is that tensions between China and the European Union have risen since Brussels launched an anti-subsidy investigation into China’s electric-vehicle exports last year.

This article was written by Eamonn Sheridan at www.forexlive.com.