China serves as decisive driver of dynamic catch-up process in changing world: German study

(Xinhua) 10:49, March 21, 2021

BERLIN, March 20 (Xinhua) -- China is a very decisive driver of a dynamic catch-up process of many emerging countries, a recent German study showed.

While the growth potential in the classic industrialized countries is limited -- mainly due to demographic factors -- many emerging countries, especially in Asia, are experiencing a dynamic catch-up process, a study of the Bavarian Industry Association noted.

"China is not the only driver, but a very decisive one of this development," it said.

China's increasing importance also has economic and trade policy consequences, the study said, adding that the competition between China and the United States may change the global trade order.

"The global economy is in upheaval, a shift of forces is underway," the study said.

Above all, the study also makes it clear that de-globalization, which is increasingly becoming a realistic threat, will lead to a loss of prosperity worldwide.

There is no alternative to free trade and the international division of labor, and protectionism and trade wars ultimately hurt everyone, it said.

In addition, the study noted that the European Union must stand up for free trade and against protectionism. It has enough economic weight to ensure the stabilization of the world trade order.

The study, titled "Shifts in the global economy -- Danger for the economic dominance of the West," analyzed the economic and political changes in the global economy.


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