“A series of actions adopted by the EU this year suggests that tougher trade policies adopted towards China may increase the possibility of trade protectionism.”-Bai Ming, Chinese Academy of International Trade and Economic Cooperation

Last November, the European Union put together a five year plan to boost European production.  The plan targets China by imposing and raising tariffs.  The goal is to force Europeans to start buying more expensive European made products by slowing, or stopping the importation of Chinese products.

Earlier this year the EU already jacked up tariffs on Chinese ceramics by 70%!  Now, as part of the five year plan, tariffs will be raised on other inexpensive products coming from China.  Several EU member countries have also boycotted products made in China.

The five year EU plan is known as ‘protectionism’.  If you know your history, protectionism became the main economic policy of many countries, including the United States, prior to the First World War, and prior to the Second World War.

Also, protectionism is the result of bad economic times, like major recessions, or depressions.  The times we’re living in now look more and more like history repeating itself.  What’s next is another World War.  Right now it looks like Europe Union has drawn the line with China, who’s next?