Economic Competitiveness of the EU in the Light of Growing Trade Essay

Economic Competitiveness of the EU in the Light of Growing Trade refinement from mainland china - Essay ExampleThe study will try to understand the battle by pickings into consideration of the emergence of China. However, it is not possible to consider all the above mentioned aspects in accordance to their deserve due to space restriction. This can be referred as the major limitation of this report. Trade Deficit amid EU and China world(prenominal) contend between EU and China has been increased in finis decade, for example, exportationing of EU to China has been increased by 110 billion euro during the year 2000 to 2011 (Eurostat, 2012). However, import from China to EU has been increased by 173 billion euro in the same period of time (Eurostat, 2012). The trend is presentation that balance of guile is declining for EU and settlement on Chinese export is increasing. Export and import shortage of EU in context to China can be depicted in the following manner. (Source Euro stat, 2012) Although the trade deficit between for EU has been decreased from 75 billion euro to 67 billion euro in the stolon six month of 2012 but console the amount of deficit is large enough to impact the scrap of EU. After the sparing recession, the trade deficit between EU and China has been improving but still the difference is large enough to affect the economic strength of EU nations. According to the above turn off only Germany and Finland have trade surplus to china while other European countries have trade deficit with China. However, Germany and Finland were unable to convert the trade deficit into trade surplus prior to recession. Careful epitome of the chart shows that growth rate of export from EU nations to China has been outpaced the growth rate of import from China. For example, export volume of Greece to Chine has been doubled... This essay presents a modern comprehensive analysis of the changing nature of economic relationships between China and European U nion. It is shown in the essay, that China gradually improve its level of competitiveness in these relationships, by increasing its exports to the EU, to an extent with the help of such practices as protectionism, intellectual property rights violation and dumping. International trade between EU and China has been increased in last decade, for example, export of EU to China has been increased by 110 billion euro during the year 2000 to 2011. However, import from China to EU has been increased by 173 billion euro. The trend is showing that balance of trade is declining for EU and dependency on Chinese export is increasing. Although the trade deficit between for EU has been decreased from 75 billion euro to 67 billion euro in the first six month of 2012 but the amount of deficit is large enough to impact the competitiveness of EU. After the economic recession, the trade deficit between EU and China has been improving Harsh situation is that there cannot be a single recommendation wh ich can help EU nations to improve its competitiveness in overnight manner. It is shown through that low cost advantage of China cannot be depleted well by EU manufacturers. EU can use the concept of vertical specialisation to decrease its dependency on Chinese imports and give the domestic players some breathing space. In vertical specialisation model, EU needs to identify sectors which need immediate attention.