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3/18/13

EU gains from "Jekyll and Hyde" trade tactics with China - study shows

The European Union's best strategy for boosting exports to China is a "Jekyll and Hyde" trade policy, blending diplomatic overtures with tough legal action against dumping and protectionism, a study published on Monday said.

The finding suggests that China is likely to be the subject of more EU trade disputes at the World Trade Organization and that more Chinese exports will be hit with punitive duties if the EU suspects unfair trade practices.

Trade with China, which is pinning future economic growth on the development of its own consumer market, could be a tonic for Europe's economy, which is struggling to recover from years of financial crisis.

The study, "What's holding back EU exports to China?", by economists at the University of St Gallen in Switzerland, led by Simon Evenett, found China's "murky protectionism" had been effective in slowing EU imports into China, but EU states could fight back.

It found that EU member states that have called for more antidumping investigations of Chinese exports appear to have their own exports to China treated more leniently by Beijing - meaning complaining reaps rewards.

Read more: EU gains from "Jekyll and Hyde" trade tactics with China - study - Yahoo! Finance

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