Time to bring down the market barriers

All of these indicate that the manufacturing industry in Europe is reliant on such trade protection measures for survival. In other words, it also signals that the old order is changing and many of the old advanced nations in Europe are no longer the power horses they were.

But the EU must realize that these trade protectionism methods can in no way stifle the growth of newly industrialized countries like China. China is the largest manufacturing nation in terms of the values of its products and by its status as the world's biggest exporter.

According to the data from the April issue of "World Economic Outlook" released by the International Monetary Fund, the euro zone accounted for 14.6 percent of the world's gross domestic product (GDP) last year, while China accounted for 13.6 percent. This clearly shows that the economic prowess that China has gained in recent years.

Europe's share in the global marketplace is slowly shrinking and it is a trend that is difficult to reverse. In issues like reform of voting rights in the International Monetary Fund and the World Bank, the United States may soon try and persuade Europe to concede some of its voting rights to satisfy the demands from emerging nations.

In such a scenario, if European companies are going to be reliant on protectionism to avoid competition, then Europe will decline at a much faster pace than anticipated.

The EU should take advantage of the opportunities arising from China's rapid economic development, rather than erect barriers for Chinese enterprises, investment and products.

In 2010, imports into China increased by 38.7 percent over the same period in 2009 and is expected to record further growth this year.

Both developing and developed nations will gain from China's strong import demand. Germany, the economic powerhouse of Europe, has been one the biggest gainers from the string Chinese demand as exemplified in its economic recovery since the second half of 2009.

It is high time for the European Union to make a smart choice on what to do and what not to do.

The author is a scholar with the Chinese Academy of International Trade and Economic Cooperation.