China overcapacity is a reason for concern though.
Despite being concerned over China’s overcapacity, according to a senior European Commission, the European Union will go ahead and grant China market economy status which will boost trade ties between the two.
“We are in favour of free trade…as long as overcapacity is harming fair trade it’s very difficult to do free trade,” said Jyrki Katainen, EU Commission vice-president for jobs, growth, investment and competitiveness. “We are willing to fulfil our legal commitment but we are not naive.”
He went on to add that discussions are on-going as to how to tackle China’s burgeoning overcapacity.
Katainen said the EU expects increased investments in infrastructure projects from China. He doesn’t expect Brexit to have any impact on such investments.
“Brexit doesn’t have any impact on investments into Europe…of course the overall uncertainty is always bad for investments and overall economic growth.”
Categories: Economy & Finance, Strategy
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