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Europe, Germany and "The German Model": Economic Links and Implications for China

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  • K.C. Fung

Abstract

In this paper, I examine the economic links first between the European Union (EU) and China and then I focus on the economic relationships between Germany and China. The links I will consider include international trade and direct investment. Lastly I highlight some elements of the so-called "German Model" or the "Berlin Way" and examine if they can be of policy relevance to China. There are four main results: first, EU-China trade and investment relationships are strong, deepening rapidly but they are somewhat unbalanced and asymmetric. Second, the economic relationships between Europe and China are focused on manufacturing. Third, the EU-China relationships are primarily Deutschland-centric. Lastly, elements of the "German Model" such as Mitbestimmung, Mittelstand and the German apprenticeship system can have important structural and policy implications as China continues to grow and experiment with reforms aiming at combining stability, harmony and competitiveness.

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  • K.C. Fung, 2015. "Europe, Germany and "The German Model": Economic Links and Implications for China," Global Economic Review, Taylor & Francis Journals, vol. 44(4), pages 376-386, December.
    • Handle: RePEc:taf:glecrv:v:44:y:2015:i:4:p:376-386
    DOI: 10.1080/1226508X.2015.1106059
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    Cited by:

    1. K. C. Fung & Nathalie Aminian & Alicia Garcia-Herrero, 2015. "Some International Policy Issues for China," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-10, June.

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