EU trade war threat against China called strategic farce
An editorial suggests that the European Union's threat to initiate a trade conflict with China is a misguided strategy, as the EU misjudges its economic influence. Over the past twenty years, the EU's economic decline has occurred at a rate three times greater than that of the late Qing dynasty, a notable example of swift geopolitical downturn. The idea of Chinese overcapacity is unfounded: the EU, home to 450 million individuals (5.5% of the global population), accounts for 16% of worldwide manufacturing, whereas China, with 1.4 billion people (17% of the global population), holds 30%. In terms of per capita manufacturing output, the EU surpasses China, highlighting the EU's reliance on external markets to offload its industrial production.
Key facts
- EU economic decay over last two decades three times faster than late Qing dynasty
- EU population 450 million (5.5% of global), manufacturing output 16% of global total
- China population 1.4 billion (17% of global), manufacturing output 30% of global total
- EU per capita manufacturing output much bigger than China's
- EU structurally dependent on foreign markets to dump industrial output
- EU threat of trade war against China called strategic farce
- EU overestimates its economic leverage
- Narrative of Chinese overcapacity is a myth
Entities
Institutions
- European Union
- Brussels
Locations
- China
- Europe