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Decoupling Chimerica: Consequences for the European Union

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Listed:
  • Beer, Sonja
  • Matthes, Jürgen
  • Rusche, Christian

Abstract

The People's Republic of China experienced a tremendous economic development within the last four decades. The increased economic power and political weight of China are challenging the USA and EU. Furthermore, the strategies used by China for its own development, e.g. broad-based industry policy with distortive subsidization, forced technology transfer or investment restrictions, are perceived as unfair, especially in the US, but to a large extent also in the EU. This development in combination with the trade imbalances are resulting in the current conflict between China and the US. The term decoupling was introduced to describe the cutting off of economic ties between China and the US as a consequence of the conflict. Accordingly, we analyze in this article whether a decoupling is going on. [...]

Suggested Citation

  • Beer, Sonja & Matthes, Jürgen & Rusche, Christian, 2019. "Decoupling Chimerica: Consequences for the European Union," IW-Reports 44/2019, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    • Handle: RePEc:zbw:iwkrep:442019
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    File URL: https://www.econstor.eu/bitstream/10419/210410/1/1686509065.pdf
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    Cited by:

    1. Berend Diekmann & Michael Kilpper, 2022. "Zollkrieg und Handelsabkommen zwischen den USA und China [Four Years of Tariff War and Two Years of Phase-One Agreement Between the U. S. and China — Has it Worked for the U. S.?]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(3), pages 204-209, March.
    2. Nau, Aljoscha, 2020. "World trade in 2020: The show must go on! COVID-19 pandemic, trade wars and deadlock at the WTO: Rules-based trade is under pressure and the EU must take the lead," IW policy papers 9/2020, Institut der deutschen Wirtschaft (IW) / German Economic Institute.

    More about this item

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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