China’s slowdown and Europe’s leverage

What is happening to the China consensus illustrates the dictum that those who live by the sword, die by the sword. For decades, the China hype – the psychological expectation of a continuous economic miracle – bolstered China’s growth, its financial clout and the lofty reputation of its managers. But after the bulls come the bears. China’s difficulties in transitioning to a new growth model, and the visible hesitations in managing the change, are now producing reversed expectations and a bear market.

For nearly a decade, Europe’s leverage with China has steadily declined because of its own internal issues. Now there is a chance to rebalance the relationship, not by rejecting China, but by making it understand the need to show more goodwill in trade negotiations that it had been indefinitely delaying or stalling.

• Primary Source

ESO: Background information: MEPs want 'WTO-proof' plan to protect EU firms against dumped Chinese imports http://www.europeansources.info/record/press-release-meps-want-wto-proof-plan-to-protect-eu-firms-against-dumped-chinese-imports/

ESO: Background information: College orientation debate on the treatment of China in anti-dumping investigations http://www.europeansources.info/record/memo-college-orientation-debate-on-the-treatment-of-china-in-anti-dumping-investigations/

ESO: Background information: Splits are emerging in the EU over China’s push to gain market economy status http://www.europeansources.info/record/splits-are-emerging-in-the-eu-over-chinas-push-to-gain-market-economy-status/

ESO: Background information: Commission launches new anti-dumping investigations into several steel products http://www.europeansources.info/record/press-release-commission-launches-new-anti-dumping-investigations-into-several-steel-products/

European Commission: DG Trade: Policy: Countries and Regions: China http://ec.europa.eu/trade/policy/countries-and-regions/countries/china/

---