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.
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”
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?
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.
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…)?
Electric cars Solar panels Wind tech
Everything else doesn’t directly compete with their oil monopoly. They should keep their tariffs for when we aren’t on the cusp of an ecological collapse, bunch of corrupt cunts.
And if imported goods have cheap prices due to ignoring labor rights, worker safety and environmental protection it is acceptable… This is hypocrite and really does not deserve further comments.
That’s fine but like you said, nothing else is being targeted. Out of all the products, they specifically target the ones leading to a greener, less oil dependant society.
You were asking why it’s being targeted and it’s specifically not because they are ignoring labor rights, worker safety or environmental protections.
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.
It’s not a “fine” but a XIX century protectionistic measure which is unlikely to help anyone (except making people poorer because higher prices mean higher expenditure for consumers). And from here to the next inflation spiral there is just a small step…
If a government helps a company from their country artificially lower their prices, that causes an unfair advantage to their competitors. And the competitors go bankrupt, the surviving government sponsored entity is then a monopolist able to increase the prices as they want. And the jobs are gone. So how does that fit I to your view on things?
And you are right, it is not a fine, it is a tarrif. But for the explanation the word fine worked better to explain it I thought.
All companies working in the energy and transport sector receive vast subsidies and financial help from whatever country they are located in.
This isn’t about unfair practices, since it’s literally a common practice. This is to protect oil companies and the car makers who took bribes instead of pivoting and are now feeling that decision.
No it is not. The EU asked for information from the companies to show how they come to their prices and they chose not to comply.
Drawing comparison to another sector is not helpful as what is common for one sector is not for the other and leads to unfair advantage.
