While the US continues to lead in software, some high-tech sectors, and hydrocarbons, China is becoming increasingly competitive in many high-tech, capital-intensive sectors, not least those once dominated by Europe. The EU does have a relative advantage in this new economic order, if only its leaders would recognize it.
MILAN—The world’s three largest continent-sized economies are moving in different directions. Each has its own strengths and weaknesses, though the balance appears to be more favorable in the United States and China than in Europe.
About the author
Daniel Gros is Director of the Institute for European Policymaking at Bocconi University.