EU restates readiness to launch trade war with China over cheap imports
EU restates readiness to launch trade war with China over cheap imports
Bloc ‘will not waver’ from making tough decisions to protect economy and security, says Ursula von der Leyen
The European Commission chief said she was “convinced that if the competition is fair” from China, then Europe “will have thriving durable economies”. But she said the “imbalances” caused by state support for Chinese industry leading to cut-cost products threatened jobs in Europe, and that was “a matter of great concern”. “Europe will not waver from making tough decisions needed to protect its economy and security,” she said.
The EU has restated its readiness to launch a trade war with China over imports of cheap electric cars, steel and cheap solar and wind technology.
Why not everything else too (electronic hardware, toys, clothes, etc...)?
They (the EU) want to achieve a goal.. stop the Chinese government from financially helping a company allowing them to undercut competitors and bankrupt competitors who do not get government aid.
If you want to influence behavior you have to show where you want the other party to go. So you don't hit other sectors that do not have this aid.. because that would be unfair.
Game theory 101.. tit for tat. They help a sector, we fine that sector.
God forbid we, the European consumers get to buy cheaper products. What's China doing so right that they can sell stuff for cheaper? What are we doing wrong?
We don't use slave labor, maybe that's what we're "doing wrong".
Many european companies have factories in China, Africa, other Asian countries, so I don't see your point. We do use slave labor quite a lot actually
Massive government subsidies that allow companies to more or less run at a loss for the most part. Its the same playbook as Wallmart and just like Wallmart its a sure bet that those prices will go up once the local competition is wiped out.
Massive government subsidies that allow companies to more or less run at a loss
Where does a government that subsidies a company operating at a loss get the money to fund itself and its unprofitable company? And why is the Chinese economy continuing to grow (often faster than its western peers) if all its businesses operate at a loss?
Its the same playbook as Wallmart
The playbook Walmart uses is to buy cheap disposable foreign imports wholesale and then sell them to western consumers at a 1000% markup, knowing they'll break and need to be repurchased in short order.
So... communism works?
Looks like the only people this upsets are wealthy Westerners and their useful idiots.
its a sure bet that those prices will go up once the local competition is wiped out.
This actually never happened. Walmart is still cheaper than any regular* grocery store, especially the co-ops.
*ALDI is cheaper because all of their products suck. Their produce sucks, their packaged goods suck, and their meats aren't actually cheaper. I think less of anyone who recommends ALDI and regret all the effort I put into giving it a chance.
The thing is, that is the short term benefit. The long term effect could be is that we be dependent on the exporting party and they can start charging higher prices. Generally it is not in your favour to be dependent on another party.
When companies want to drive down wages by outsourcing to China: "you need to learn to compete with China"
When companies are faced with cheaper products made by Chinese competitors: "we all need to put a stop to this"
Europe: "We're outsourcing our industrial capacity to the far east, because we can hire their workers for a pittance. Now we can fire all our domestic workers and still profit off our domestic consumers."
China: "Damn, look at all this amazing new business capital. We should use it to improve our own lives and livelihoods. Oops! Now wage rates are rising, as we transition to a consumer economy."
Europe: "Oh shit. Oh fuck. Chinese labor went up a fraction of a percentage point, cutting into our profit margins. Launch the trade war. Launch the trade war!!!"
Only that’s part of the story. China’s trade war with the US and their own domestic economic downturn has them looking for other markets to dump their excess goods (electric cars, etc.).
The EU is their only lifeline right now. If they get into a trade war the China will have nowhere to dump their goods except for Africa and South America. Those markets are not nearly as lucrative or built out.
China’s trade war with the US and their own domestic economic downturn
I'm sorry, their downturn? China's economy grew 5.2% in 2023.