Competing with China in Third Markets

China’s export growth is increasingly concentrated in advanced manufacturing sectors, but the loss of European market shares in third markets is not explained by Chinese competition alone. Germany, France, and other European economies have also lost ground to competitors outside China in many markets.

The brief argues against broad tariffs as the default response to Chinese competition. Instead, durable competitiveness requires investment in innovation and new technology. Where sectoral safeguards are considered, they should be justified by strategic or security concerns or clear evidence of unfair trade practices, and temporary protection should include sunset clauses.

Links & Downloads

• Link to paper