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.
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…
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”.
We shipped all our manufacturing to a country that allows slave labor and now they’re beating us.
hey, but you get to deflect from that like you’re role models of human rights. until you look into your history, oh wait…
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.
