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This article focuses on China and its impact on the European Union economy, labour markets and workers. It is widely claimed that, faced with competition from countries such as China, Europe needs radical reform of its economic and social institutions in order to remain competitive. This article presents two main theses. The first is that Europe remains, to a far greater extent than is commonly supposed, master of its own destiny and the various actors should tailor their policies accordingly. The second is that one must beware of simply extrapolating from past trends. China's development trajectory is changing and will do so further, opening up opportunities for, as well as posing threats to, Europe.
