One can hardly deny that China is one of the most economically powerful countries. Every year, it is expanding its economic capacity. This is why it is not surprising that Chinese manufacturers may soon overtake Europe as the world's biggest exporter. According to a recent study by Euler Hermes, over the last two decades, the euro area's overall export market share has declined considerably.
Economists have more than once said that European manufacturers are losing their dominance in the global export market. The eurozone's export share is gradually decreasing. So, China is stepping up as the main global supplier of industrial goods. The study states that the export share of France, Germany, and Italy dropped by 1.7%, 1.3%, and 1.1% respectively. European exporters are simply unable to compete with Chinese suppliers in the main export industries, including aircraft, pharmaceutical, and automotive ones. Besides, over the past ten years, China has noticeably improved the quality of manufactured goods. This is why their quality is no worse than European ones. On top of that, their price is much lower.
Experts suggest several ways on how to increase European exports. First and foremost, it is necessary to revise the pricing policy (for example, to introduce tax incentives). The government should also come up with structural reforms, namely to make some amendments to labor law. For instance, the training courses for employees may help eliminate the shortage of qualified personnel. Apart from that, it is also vital to support industries that show high growth potential as well as traditional industries in their transition to a greener business.
