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Europe Needs Chinese Investment

For decades, China has required Western companies to establish partnerships with domestic manufacturers to access its vast market. To remain competitive and avoid a painful China shock, the European Union should reverse engineer the policies that enabled Chinese companies to become world leaders in green technologies.

MUNICH – Over the past two decades, the productivity gap between Europe and the United States has steadily widened, with labor productivity in the US growing at more than twice the pace of the eurozone’s. The European “competitiveness crisis” can be attributed to several factors, including insufficient public and private investment, a shortage of tech firms and venture-capital funds, and the continent’s demographic decline. Another possible explanation that is often overlooked is the decline in foreign direct investment (FDI).

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