4 ms·

So they will be taking money from citizens in form of taxes so they can give it back to those same citizens? Seems like a lot of time-wasting bureaucracy.

itishappy 3y ago
Yes, money will be given back that was previously leaving the country.
- Detrytus 3y ago
  No, this money wasn't leaving the country. Suppose some item from China costs $100. Now EU will add, say, $15 tax to it, for the total price of $115. So, $100 is going to China, as previously, and $15 tax paid by EU citizens is redistributed among EU citizens. And no, do not expect Chinese companies to just eat the tax, because their profit margins are usually already thin, as they are competing on price in many markets. This may change, eventually, if Europe finally learns to manufacture things themselves, but that's a long and hard way. For at least the next decade they will have no choice but eat the tax and continue buying from China.
  - wkat4242 3y ago
    And that €15 will not go directly back to the citizens but more likely to corrupt banks or other enterprises.
  - wedernoch 3y ago
    Before: * EU product 115€ * China product 100€ After: * EU product 115€ * China product 115€ So chinese product can't just outcompete on price. And the money may actually sty in the EU.
  - itishappy 3y ago
    That's $100 leaving the country. > And no, do not expect Chinese companies to just eat the tax, because their profit margins are usually already thin, as they are competing on price in many markets. That's the point. From the article: > Under the new regime, an importer of Chinese steel will have to purchase carbon credits that correspond to the same rate as steel produced in the European Union. Europe already produces this stuff, they're just being outcompeted by China subsidizing their costs using the environment. Since China and Europe happen to be share big parts of the environment, Europe feels environmental effects no matter where the steal is produced. Yes, I am suggesting they were already paying for this (just not with money). I think the EU is too.

itishappy 3y ago

Yes, money will be given back that was previously leaving the country.

Detrytus 3y ago
No, this money wasn't leaving the country. Suppose some item from China costs $100. Now EU will add, say, $15 tax to it, for the total price of $115. So, $100 is going to China, as previously, and $15 tax paid by EU citizens is redistributed among EU citizens. And no, do not expect Chinese companies to just eat the tax, because their profit margins are usually already thin, as they are competing on price in many markets. This may change, eventually, if Europe finally learns to manufacture things themselves, but that's a long and hard way. For at least the next decade they will have no choice but eat the tax and continue buying from China.
- wkat4242 3y ago
  And that €15 will not go directly back to the citizens but more likely to corrupt banks or other enterprises.
- wedernoch 3y ago
  Before: * EU product 115€ * China product 100€ After: * EU product 115€ * China product 115€ So chinese product can't just outcompete on price. And the money may actually sty in the EU.
- itishappy 3y ago
  That's $100 leaving the country. > And no, do not expect Chinese companies to just eat the tax, because their profit margins are usually already thin, as they are competing on price in many markets. That's the point. From the article: > Under the new regime, an importer of Chinese steel will have to purchase carbon credits that correspond to the same rate as steel produced in the European Union. Europe already produces this stuff, they're just being outcompeted by China subsidizing their costs using the environment. Since China and Europe happen to be share big parts of the environment, Europe feels environmental effects no matter where the steal is produced. Yes, I am suggesting they were already paying for this (just not with money). I think the EU is too.