Europe’s phoney war with China is at an end. After years of building up an improved arsenal for a trade war, Europe is now showing it is willing to get tough on Beijing.
On Tuesday, EU investigators swooped on the Dutch and Polish offices of Nuctech, a maker of security scanners, in a case that hinges on one of Europe’s longest running grievances with China — lavish state subsidies that help Chinese firms undercut European rivals.
Nuctech was once run by Hu Haifeng, son of President Xi Jinping’s predecessor, Hu Jintao, and China’s reaction was predictably seething. The raid “highlights the further deterioration of the EU’s business environment and sends an extremely negative signal to all foreign companies,” China’s mission to the EU fumed.
The timing of such an inflammatory raid seems significant, ahead of a trip to Europe by Xi next month — his first in five years, taking him to France, Serbia and Hungary — marking a definitive shift in the way that Europe is prepared to tackle its trade problems with China.
Who the fuck is it that is making these stupid taglines? Pulls it’s gun? Just post a normal title, if you have to spruce this shit up with nonsense, it means your writing sucks or the subject is not worth reporting in the first place
Well you know how the Europeans are famous for their strong gun culture.
I hear EU discussions are on about the Chinese shops like Temu as well as discussions about Tik Tok
Temu is a nightmare designed to destroy foreign competition
The EU wants to keep people buying overpriced garbage instead of cheap garbage.
Why? I have no idea.
I think that the main concern is, that EU has implemented certain quality requirements for its consumers, that are not being upheld by shops like these. It undermines the standards. I don’t see any issues with buying/selling products from China or other countries, inside the EU, but I understand that they need to live up to the standards required by the EU
Plastic doohickeys have quality standards in the EU? This is news to me tbh
I know it’s true for more robust goods, but Temu isn’t exactly used to buy cars
Plastic doohickeys indeed have quality standards in the EU, e.g. plenty of phalates are limited to banned depending on product category (e.g. children’s toys). Without adherence to those standards no CE mark, without that no sales on the internal market.
This is mind-bending politics to me. My brain can’t handle the intricacies. I barely understand what this is about.
Basically, China pumps incredible amounts of money in to companies, so they can undercut prices from EU companies crazy - forcing the EU companies to give up. EU wants to level the playing field.
Edit: With taxes for Chinese companies that want to sell something in the EU, like China already does as well on the Chinese market.
There also another thing at play here: China has laws, so that foreign companies need at least 50% Chinese “shares” (it’s not just shares), basically neutering these companies and also giving away the technology to Chinese third parties. Wich further erodes the playing field, because now Chinese companies not only can produce stuff dirt cheap, they can also do it with “high-tech” stuff, without having to pay and/or do the development.
So does the US, though? Tesla has received an absurd amount of government support. So has Intel. This is targeted at China specifically, it’s not some economic leveling scheme.
There’s still a huge difference, because most of the subsidies in “western” countries are Tax Subsidies (there are exceptions). Chinese companies get direct money. There’s also the fact, that management is often in the CCP, sometimes even directly involved in the law making and various other things. Almost all subsidies are also in government loans, meaning they have to be payed back - the difference to bank loans though is that the government loans do not have interest. Again something that isn’t happening in China…as the CCP mostly owns those companies as well, they do not have to pay back the money.
Compare the subsidies received by Tesla and BYD. Cite your sources to back up your claims.
Yes, because the CCP are renowned for sharing information and transparency.
If the World Bank and the IMF find the data released by China credible, why can’t you?
Fine, then just tell me about what subsidies Tesla has received. I’ll wait.
It is estimated that China’s subsidies for its domestic industries are extraordinarily high, ranging from 3-9 times compared to that of other OECD countries. BYD in particular is estimated to have received 2.1 billion EUR in 2022 in direct subsidies alone. This figure is understood to be understated due to additional indirect assistance such as cheaper access to batteries etc.
For comparison, Tesla is estimated to have received around 2.8 billion USD in combined state, local and federal subsidies, with an additional 460 million USD in the form of bailouts and loan assistance, in total to date.
China’s Massive Subsidies for Green Technologies | Kiel Institute - https://www.ifw-kiel.de/publications/news/chinas-massive-subsidies-for-green-technologies/
Subsidy Tracker - https://subsidytracker.goodjobsfirst.org/parent/tesla-inc
Found the tankie
Ah okay, wow, nice and concise. Well done, thank you! 🙏
Before the Industrial Revolution, Europe had an issue trading with China as Europe had issues finding anything to trade. Europe’s natural resources weren’t valuable enough and China was able to produce many manufactured goods.
The colonization of the Americas was done in part to either get new natural resources not located in China or precious metals like silver and gold. The trade deficit got so bad that the UK and other European countries started selling opium as a way to balance trade.
China’s reindustrialization is bringing itself back to that old status quo and the EU is trying to fight this.
Theatrics. It’s just a play by phony actors.
Interesting. Any further details? Please explain as if I’m a high schooler. 😅🙏
High schooler. Got it.
So you’re pals with this guy Xi. He helps you with your homework. Turns out he’s only pals with EU because he’s banging your sister, Europa, after homework is done. So when you’re at Xi’s place you want to bang his sister, but he says no. You want so say no, but then no more homework help, so you study hard to do your own homework and say hands of my sis, creep.
Then you wait to see what happens. Maybe Xi now only bangs Hungary but she’s a dirty slut anyway.
lmao alright. Perfect, thank you. And finally, what are the real world sisters and the homework? 😄
Trade and cheap manufacturing/materials respectively. That’s the simple version anyway.
No wait, your problem is xi is flooding the market with cheap homework so there’s no point in anyone else doing it. It’s easier to just use his that he’s practically giving away leading to everyone being dumb.
You want to… er… do your own homework so you can grow up strong and clever.
Ok no sorry I think the analogy is just wrong :)
I prefer the term “oversimplified”.
Fact that it’s Hu Jintao’s kid makes me think this is theatrics for both sides
Hu Jintao’s from a different faction of the CCP than Xi Jinping, this is effectively Europe hitting one of his potential rivals.
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What are you talking about? It’s known China pours tons of subsidies into their organisations that go so far as these organisations selling their products cheaper than what they cost to produce. They flood target markets with the clear intention of destroying local industries so they can take over the entire market for themselves.
Also, free market? A company who wants to operate in china will have most times to do some sort of technology transfer and give part of the control to the Chinese government. Add child labour on top of that and the horrible working conditions Chinese workers endure and you will start to having a picture of how absurd it is to have “free market” with China.
Free market is a good thing when you operate in the same leveled field.
Victimisation?! They EU has done nothing about China’s BS for way too long and it’s now finally taking action. That’s a good thing if you ask me.
Eu does that also, we sell goods to other continents cheeper than what they can produce. We are not Innocent in this regard, we fuck over African producers by subsidizing the shit out of our products, so they can’t compete. Poor people buy our can of tomatoes, instead of tomotoes produced in the region, creating jobs and businesses.
The US does the same thing, when NAFTA was signed the US started to subsidizing agricultural, to take over the Mexican markets. Clinton knew this would make a lot of people poor in Mexico and they would probably emigrate to the US, so Clinton increased the border security.
Right, maybe I can be more clear on my stance then.
I don’t agree with the outcome, nor am I saying it’s a good thing china is doing. I mean I’m impacted by the EU’s decisions as a part of it, so I would be shooting myself in the foot.
What I’m saying is, the EU has been consistently making naive decisions when it comes to enforcing its economic safety. Making free trade agreements that would negatively impact its internal economical balance and turn out to be very much one sided, and not taking preemptive or earlier measures against china’s obvious economical dogma. It’s been decades. While I am indeed glad they finally do something about it, I’m just worried about the time it took them to realize the Chinese could be a threat or even worse, that they did it on purpose.
Edit: I deleted my original comment because it was awkwardly and hastily written and did not reflect accurately what I meant to express.
Yeah you’re pretty much saying what I’m saying then.
Because the EU doesn’t really allow large-scale subsidies in the same way. Of course, the US does, which is why Tesla has been so successful and half the chip companies in the world just decided to set up new fabs there, but…
