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.
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.
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?
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.
