China

Pursuing a European approach to international trade policy—the agenda of the Kiel Institute calls for a robust EU response to geopolitical tensions, protectionism, and economic uncertainties. China's dominance in key industries, the looming threat of U.S. tariffs under Donald Trump, and Europe’s waning competitiveness require a unified European strategy. A strengthened single market and a strategic trade policy—one that fosters openness, liberalization, and new partnerships, e.g. with Africa—are essential to bolstering Germany’s and the EU’s resilience while maintaining parity with the U.S. and China in the long term.

Rolf J. Langhammer, trade researcher at the Kiel Institute for the World Economy, comments on the impending failure of the European Union's (EU) Mercosur trade agreement with Argentina, Brazil, Paraguay and Uruguay.

The motivation behind the West's and China's granting of loans to African countries differs considerably. Western countries are more likely to lend to resource-poor and highly indebted African countries than China. China's lending to Africa is more driven by its economic interests, lending to countries with richer resources, lower risk of default, and higher willingness to pay for loans. These conflicting interests jeopardize much-needed debt relief for African countries, according to a new study by the Kiel Institute that examines lenders’ motives for lending to African countries.