Impact of Emergence of Global Competitors on EU Essay

Impact of Emergence of Global Competitors on EU - Essay Example The European Union needs to restructure its economic policy in order to have an interest driven approach. The Chinese are willing to work with the emerging economies unlike Europe which is keen on majorly working with United States of America. Europe suffers from internal divisions, giving the Chinese a better competitive chance. The poor coordination between the member states of EU benefits Beijing directly. The euro zone does not depend on the European central bank when it comes to the bonds issue. Rather, it is dependent on various governments. The rise of emerging economies like China and India has an implication to the competitiveness of the EU. The union must have internally robust structures and engage the rising economies in a meaningful way in order to remain relevant. Regional competitiveness is defined as the ability of a locality to generate sustainable environment and attractive conditions to local residents and firms. Europe was perceived as a source of inspiration by the traditional Chinese revolutionaries. The post revolutionary generation has been looking to United States for the same. The economic interaction between China and Europe has been expanding from 2004. In 2011, the European foreign investment in China reached â‚ ¬17 billion. This was an all time high. The European exports to the Chinese economy are increasingly overtaking imports. In 2009 and 2011, the Chinese investments in Europe tripled to reach â‚ ¬7 billion. The growth was experienced in multiple sectors of the European Union economy. The debt crisis has caused the Chinese to turn to European bonds for investment. This paper discusses the emergence of global competitors and threat to the economic competitiveness of EU. The development of the china-EU relationship The bilateral trade structure There is a lack of a comprehensive reorientation in the way China approaches Europe. This attitude began after the fall of communism (Alon 2009). There is a lack of specific knowledge among the small countries in the EU. This means that some countries do not appreciate their role in the EU and EU-Sino relationships (Crossick & Reuter 2007). The weak or non-existent structures in the EU-China relationships have caused Germany and China to enjoy more trade compared to other European countries. Beijing has found it difficult to develop foreign policy towards Europe (Luo 2010). This is because of the parochial misapprehension and a bilateral trade structure that has suffered to from extreme weaknesses in the previous decades. Research shows a lack of mutual comprehension between China and Europe (Crossick & Reuter 2007). The European products are increasingly gaining access to China. China continues to view Europe as a zone for instability. The member states mu st assent to any agreements between Europe and China. This means that over 20 countries can influence such decisions through committees. This structure has made the bilateral ties slower to implement. The individual states of European Union come together under the policies on international affairs, human rights and liberalization (Wiessala et al 2009). London has been specifically vocal. A third of the budget of the European Union is spent trying to help China achieve the world trade organization standards (Wiessala et