European Union (EU) has adopted multilateral governance and sound international trade policies from early on after WWII. Although the EU is still a major figure in the global arena as an exporter, the emergence of China and other developing economies is decreasing its market share. Therefore, the policy changes should revolve around becoming a more competitive contestant to the two largest world economies, which are the US and PRC. One of the significant advantages of the EU is the fact that it is comprised of both highly developed and developing nations. EU needs to consider the rival the economic strength of the United States through its developed countries, such as Germany, in their powers of institutions and the free market. However, developing nations should adopt early Chinese strategies of becoming a manufacturing hub for large multinational corporations.
In other words, the emergence of the Chinese economic miracle might result in its downfall in terms of slower growth. It achieved such a state by becoming a cheap manufacturing spot, which was accompanied by a strong emphasis on entrepreneurship. Similarly, many eastern EU nations can fill the gap and replace China because European governance is more reliable and transparent than a Chinese one. In addition, international trade and multilateral policies should gradually shift towards this dual approach of competing with its largest competitors. A key feature of the reform process is the combination of introducing free competition and strengthening government regulation, either through legislative initiatives and direct rule or indirectly through specially created institutions. Given the social and environmental importance of production, the state cannot make completely abstract itself from the sector. Balancing the production and distribution of electricity resources is achieved only through persistent bargaining and compromise.