Europe set to benefit in China row

17 September 2009

18 September 2009 | Jake Kanter

European buyers could benefit from cheaper goods from China as a result of trade tensions between the Asian country and the US.

Last week a tit-for-tat trade dispute erupted between the countries over the influx of cheap goods into both markets.

Experts said that purchasers in the UK and Europe would be able to trade more openly with China, as suppliers look to sell excess capacity produced for the US market.

Gerry Mattios, practice leader in supply chain and procurement at Atos Consulting China, said: "The volume of China's trade with the US is going to fall and as a result the extra capacity [suppliers] will have, will lead to supply into Europe and ultimately maybe better prices."

There is a "clear opportunity" for buyers in Europe, said Bradley Feuling, chief executive of supply chain consultancy Kong and Allan.

He said: "Suppliers are going to look for partners where protectionist barriers are low." It follows Chinese and UK companies signing deals worth more than $500 million (£304 million) this month.

Meanwhile, earlier this year a group of buyers from China visited Europe to purchase goods and services worth about £1.5 billion.


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