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Jürgen Matthes in IN BRIEF External Publication 18. September 2020 For a More Robust Approach Towards China in European Trade and Investment Policy

China’s overall concessions in the CAI have so far fallen short of the EU's expectations. Apparently, Beijing will not move sufficiently on the issue of competitive distortions without more negotiation pressure.

External Publication
For a More Robust Approach Towards China in European Trade and Investment Policy
Jürgen Matthes in IN BRIEF External Publication 18. September 2020

For a More Robust Approach Towards China in European Trade and Investment Policy

German Economic Institute (IW) German Economic Institute (IW)

China’s overall concessions in the CAI have so far fallen short of the EU's expectations. Apparently, Beijing will not move sufficiently on the issue of competitive distortions without more negotiation pressure.

The EU should therefore choose a more robust approach and align even more with the US in this respect. More concretely, Brussels also needs to take unilateral action - in order to increase China’s incentives to engage, but also to prepare for a further increase in the global spillover of Chinese competitive distortions. However, in contrast to the US approach, European unilateral actions have to remain within the remit of WTO rules.

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A new opportunity to tackle the global distortions of China’s state capitalism
Jürgen Matthes / Samina Sultan IW-Kurzbericht No. 91 6. December 2023

Reforming the WTO’s subsidy rules

The African Group proposes to reform the WTO’s subsidy rules for industrial goods. Even if this demand for more policy space entails some problems, the EU should view this as an opportunity.

IW

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Jürgen Matthes / Michael Grömling / Markus Demary / Björn Kauder / Berthold Busch / Gero Kunath / Thomas Obst External Publication 25. October 2023

Why Price Stability Matters

As of March 2023, overall infation is declining in Europe. However, core infation levels continue to remain well above the 2% mandate of the European Central Bank (ECB). In fact, the current bout of infation should continue to weaken as and when supply-chain ...

IW

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