The report will try to shed light on the topic “Is the further emergence of China going to threaten the economic competitiveness of the European Union (EU)?” In the first part, the report will try to understand the competitive threat for EU in context to trade deficit, labour cost advantage in China, dumping practices by China, Intellectual property rights violation, protectionism by Chinese government to save the domestic industry and create barrier for EU companies and value chain up gradation by investing capital in the field of research and development by Chinese government. Throughout the report, the study will try to understand the competitiveness of China in terms of both macro and micro economic theories. Important assumption in this paper will be backed by statistics and industry data. In the last part, the study will try to recommend suitable actions to European Commissioner and Head of Member State in order to improve its competitiveness in sustainable manner.
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