The Economist's Digest 6

Charlemagne The China trade syndrome
(Originally from The Economist Oct.6~13, 2007)

Summary:
The threat of developing European countries made Europe notices the threat of China later than America. That is to say, when the Americans were afraid of the rise of China, the rich EU countries still worried about labors in poor EU countries taking their jobs.
Then the EU notices China now, because their trade between China expanded by over 20%, and their trade balance was influenced by China. As the Chinese imports amount rises, the peace communication between the EU and China becomes more and more difficult.
China has been accused of many thins, all of which point to a conclusion: Unfair trade, especially the invasion of super cheap imported products. Moreover, lowing Chinese currency(貨幣)makes it more aggressive. Thus, both the EU and America are trying to make it higher but in vain, even showing their weakness.
This kind of weakness seems a little strange because the EU is one of the greatest trading regions. However, China knows the inside division in the EU (referring the summary article “Overweight and underpowered”, 9/15) about their business attitude. The developed EU countries get profit from China, while other developing EU countries, such as those in southern and eastern EU, are unwilling to see China grabbing their opportunity.
The developed EU countries’ opinions are also different:
France: Close the door unless China notices their needs.
Britain: Want to open the market due to their needs.
Germany: Both of the opinions above.
The EU may figure out a response to China, which may get China more involved with WTO and make stricter rules to China. But it’s better than useless arguments and fear.

What I think:
Grows China, threats the world. The economic development of China stuns all of us in recent years. Contrary to Asia and USA, the EU was so busy dealing with its problems inside the continent that it ignored the trade problem with China. It’s good mirror for us.
The threat by China is clearly seen in Taiwan; what about other globalization problems? What about our trade in other countries? What about our rising price of bread? The development in Korea and Japan is also notable, and Japan’s attitude toward globalization is also interesting, which may give us a way.