© Copyright Acquisition International 2024 - All Rights Reserved.

Article Image - 3.5 Million Jobs at Risk if EU Grants Market Economy Status to China
Posted 21st September 2015

3.5 Million Jobs at Risk if EU Grants Market Economy Status to China

A landmark study by the Economic Policy Institute released today reveals that if the EU grants Market Economy Status to China, the EU could lose 3.5 million jobs and 2% of GDP.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

3.5 Million Jobs at Risk if EU Grants Market Economy Status to China

3.5 Million Jobs at Risk if EU Grants Market Economy Status to China

Image

A landmark study by the Economic Policy Institute (EPI) released today reveals that if the EU grants Market Economy Status (MES) to China, the EU could lose 3.5 million jobs and 2% of GDP. 

If the EU surrenders to Chinese pressure for Market Economy Status, Europe would permanently lose the ability to set proper anti-dumping measures on unfairly dumped Chinese imports. Such a capitulation would severely damage the competitiveness of EU manufacturing industries, undermining still fragile European economies.

Professor Robert E. Scott, author of the study and Director of Trade and Manufacturing Policy Research at EPI, commented on his findings saying, “Abandoning the possibility of obtaining relief from state-financed dumping would expose EU producers to a flood of cheap products from China, destroying employment and business investment in manufacturing.”

The EPI study calculated that MES for China would directly put at risk up to 1 million European jobs in affected industries, with knock-on losses of 1 million additional indirect jobs in related sectors. Subsequent negative income effects could lead to as many as 3.5 million job losses over the next three to five years, according to EPI. The hardest hit countries would be Germany,Italy, UK, France and Poland.

Professor Scott added, “If China continues its strategy of developing overcapacity and dumping, job losses – especially in import sensitive industries – could be even higher. Sectors such as steel, ceramics, aluminium, paper, glass, auto parts as well as chemicals and environmental technology industries, which already suffer from Chinese dumping, would be particularly affected. Market Economy Status could put an additional 2.7 Million jobs in these highly vulnerable industries at particular risk.”

The study was presented by AEGIS Europe in Brussels today. AEGIS Europe is an alliance of 30 manufacturing industry associations that advocate free and fair international trade. AEGIS Europe highlights that everyone accepts that China meets only one of the five EU criteria necessary to be considered as a market economy.

Reacting to the report, AEGIS spokesman Milan Nitzschke said, “China is not a market economy and cannot be recognised by EU policy makers as such. China has been lobbying for MES for many years, but in the last five years its leadership has doubled subsidies to Chinese industry, resulting in even greater overcapacity, overproduction and dumping.”

“Around 50 vital EU anti-dumping measures currently in force would be nullified by MES. China would be able to expand its strategic dumping across all sectors of European manufacturing. Other major trading partners, such as the US or Japan, are not expected to grant MES to China: there is no reason for the EU to do so either,” added Mr Nitzschke.

Categories: Leadership


You Might Also Like
Read Full PostRead - Eye Icon
An Overview of the British Taxation Market for 2018
Finance
30/05/2018An Overview of the British Taxation Market for 2018

Taxes are one of those things that we cannot escape, so let's take a look at what the current tax rates are in England for 2018 and what you will be expected to pay.

Read Full PostRead - Eye Icon
Handling Fleet Accidents: A Field Guide For Managers & Operators
Leadership
05/01/2023Handling Fleet Accidents: A Field Guide For Managers & Operators

Accidents are a part and parcel of managing a large and active fleet, and is something that fleet managers and operators should be ready for at all times.

Read Full PostRead - Eye Icon
GDPR Burdens Hinder M&A Transactions
Legal
22/11/2018GDPR Burdens Hinder M&A Transactions

GDPR Burdens Hinder M&A Transactions in the EMEA Region, According to Merrill Corporation Survey

Read Full PostRead - Eye Icon
CFH Docmail Acquisition of BSS Scotmail
Finance
04/08/2015CFH Docmail Acquisition of BSS Scotmail

CFH Docmail Acquisition of BSS Scotmail

Read Full PostRead - Eye Icon
7 Tips For Resilient Manufacturing Operations
News
15/11/20227 Tips For Resilient Manufacturing Operations

Disruptions happen daily at factories around the globe, causing significant damage to production processes. According to Statista, there’s an estimated loss of $184USD million in 2021 due to supply chain disruptions globally. No manufacturing business is imm

Read Full PostRead - Eye Icon
CFO of the Year
Finance
02/02/2016CFO of the Year

Syncsort is one of the largest big-data companies and oldest software companies in the market, drawing on it wealth of experience to provide unique solutions.

Read Full PostRead - Eye Icon
How to Make Sure AI Works for Your Business
Innovation
16/05/2023How to Make Sure AI Works for Your Business

According to 2022 statistics from the government, there are 5.5 million SMEs in the UK making up 99% of the total business population. They are the backbone of a healthy economy and generate growth and employment opportunities.

Read Full PostRead - Eye Icon
How To Prepare Your Business For Sale
M&A
20/03/2024How To Prepare Your Business For Sale

As entrepreneurs, we invest not only money but years of hard work, dedication, and passion into building our businesses.

Read Full PostRead - Eye Icon
Can Blockchain And AI Work Together?
News
26/04/2022Can Blockchain And AI Work Together?

Can Blockchain And AI Work Together? There is a lot of buzz around the potential for blockchain and AI to work together. Some people believe that this could be the beginning of a whole new era of innovation, while others are skeptical. We will explore the rela



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow