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I think you're excluding the middle[0] here. If you think the EU can't compete, you can't just say it's due to worker protections. There are lots of reasons. E.g. there's load more investment capital available in the US; that's not due to Chinese labour laws.
> What can we do other than add protectionist rules?
Worker protection isn't the same as protectionism.
> And if EU enforces such regulations while China doesn't, for example, we need protectionist rules in place to ensure that they can't undercut us by killing our planet
Much tighter, more specific rules though. Not "free markets bad so protectionism". Making sure specific environment-related rules are followed for certain products coming in is much smaller than just a ban.