Submission Statement: A delegation from the European Commission has been locked in talks with Chinese officials in Beijing, as the sides look to find a diplomatic off-ramp from a looming trade war before an October deadline set by Brussels.
The EU team was spearheaded by Denis Redonnet, the bloc’s top trade enforcement officer, who was recently made point person on China trade policy – a recognition that in EU circles, talk of partnership has largely been usurped by rivalry and competition.
Posted by DifficultBarber6969
3 Comments
Can’t wait for someone to explain how trade war over trade deficits are based when Europe does it
It’s the usual tough talk, but my impression is that the Europeans don’t have the resolve to fight out a trade war.
Does anyone have opinions or insights about what’s going on from the EU side?
China doubling down on investment led growth is an insane gamble. They want to grow significantly faster than the global economy, and since real estate and infrastructure can’t absorb enough it will be manufacturing and export led. The already gigantic size of the Chinese manufacturing sector means that they want their manufacturing to grow faster than global demand. So they want to deinduatrialize every other country and prevent poor ones from industrializing. Even if you completely ignore geopolitics, it should be obvious that other countries are not going to accept that. Additionally you have most big economies viewing them somewhere between critical and hostile.
China is also wasting the couple of years they have left before their working age population starts collapsing to increase consumption, so they willend up with a lot of stranded assets and morbid consumption. They will be lucky if their long term development looks like Japan in the last thirty years.