IMF paper analyses China’s trade impact on Europe

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A working paper published by the International Monetary Fund on September 6 explores how China's trading may have shaped specialisation and competitiveness in the European Monetary Union.

The authors, Uffe Mikkelsen and Esther Pérez Ruiz, find that the countries on the periphery of the euro area fare well in sectors where China is most competitive, particularly the textile industry, where Portugal, Greece and China are all competitive as a result of low costs.

In contrast, the authors say that

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