Our economy has benefited, at least over a certain period of time, from the favourable impact on inflation resulting through various channels from the lower cost of imported manufactured and intermediate goods. Moreover, increased competition has provided a further stimulus for the introduction of structural reforms to enhance the efficiency and flexibility of the European economy.
So, why do we Europeans occasionally express concern about the expanding trade and, more generally, the economic ties between the EU and China? I think that there are many bad and some good reasons. The main reason, in my view, is that Europe can not yet reap the full potential benefits of free trade owing to certain “asymmetries” characterising the EUChina trade relationship.