The bigger drag on European Union growth is losing market share to China rather than a widening trade deficit with the Asian country, Goldman Sachs said on Thursday, but added any response from the bloc would stop short of U.S.-style blanket tariffs.
Faced with weak domestic demand and excess capacity, Chinese manufacturers have flocked to international markets, increasing competition for the European Union (EU) in the Asia-Pacific, Latin America and Eastern European markets, Goldman said. The European Central Bank recently trimmed its growth outlook for the rest of the year.
