What is holding back EU exports to China?

Abstract

Access to the fast-growing Chinese economy is prized by policymakers and business people but concerns that European firms are missing out on the Chinese boom have led to soul-searching concerning Europe's competitiveness and to criticism leveled at Chinese protectionism. This paper examines the factors affecting the export share to China over the period of 2000 to 2010 of the first 15 members to join the European Union. China's growing share in world spending is found to be the most important factor in this respect but labour cost differentials within Europe, commercial diplomacy, and export promotion policies by China have also contributed. © 2013-Center for Economic Integration, Sejong Institution, Sejong University, All Rights Reserved.