A new report released by the US based economic policy institute has suggested China as a threat to the economy of Europe.It found that the decision to grant China a market based economic status would be inimical to Europe putting between 1.7 m and 3.5m jobs at risk and make it more difficult for the EU "to impose tariffs on dumped goods, allowing Chinese companies to undercut domestic production by flooding the EU with cheap goods.
The same sentiments were shared by various European manufacturing industry associations saying the increased number of imports that would occur if China were afforded MES would reduce EU output by between €114.1bn and €228bn per year.
The manufacturing industry would be hit particularly hard, with the automobile parts, steel, glass and aluminum sectors the worst affected. These losses could push up by one percent the unemployment level in the Euro zone.Germany could lose up to 639,000 jobs, while Italy and UK 416,000 and 387,000 respectively if China is awarded market economy status.
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