Bruegel
65d ago
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📦️How much of what China can no longer sell to the United States ends up on Europe's doorstep❓
🔴 "If you want to take one thing from our paper, that is the more short term issue of trade deflection is also important for specific sectors.
🟠 And this is something that the European Commission should take into account, because this is really important in terms of how the industry and the population respond to the China shock and how we manage the relationship with China will be influenced by how we handle these trade deflection.
🟡 But I fully agree that the big issue there is more of a structural issue. And this is way beyond pure trade protection.
🗣️ Vincent Vicard in conversation with Alicia García-Herrero, Isabelle Mejean and Yuyun Zhan on Chinese trade deflection, a chapter from "The New Global Imbalances", a new joint Bruegel-CEPR Paris Report.