EU Study: European Firms ‘Unprepared’ for U.S.-China Decoupling
Posted by Vijeta Uniyal
The EUCCC-Merics study: “European firms remain primarily unprepared for a potential deepening of the rift between the two economic superpowers.”
The European companies are “unprepared” to face the trade and industrial decoupling between the United States and Communist China, a new EU study finds.
“European firms remain primarily unprepared for a potential deepening of the rift between the two economic superpowers,” the study by the EU Chamber of Commerce in China (EUCCC) and Berlin-based think tank MERICS said.
In light of the steps taken by President Donald Trump during his term, the European tech companies that depended on China may also find it challenging to operate in the United States.
“European companies may be forced to choose between either entirely separate operations in China and the rest of the world,” the study suggested.
The German broadcaster Deutsche Welle reported the findings of the latest study:
Washington and China have been engaged in a trade and technology war since 2018, with both sides looking to reduce their interdependence. The decoupling or disentangling of the world’s two biggest economies, tremors of which are being felt across the global economy, however, is not the biggest challenge facing European firms doing business in China, a survey showed.
The firms rated the US-China economic split below challenges posed by a global economic slowdown, the COVID-19 pandemic, competition with Chinese firms, market access issues, and rising labor costs.
full story at https://legalinsurrection.com/2021/01/eu-study-european-firms-unprepared-for-u-s-china-decoupling/