4 ms·

> China does not own 51% of VW Is VW the JV used to sell in China? > They are selling their IP. It is business. they have no choice if they want to sell in C

> China does not own 51% of VW Is VW the JV used to sell in China? > They are selling their IP. It is business. they have no choice if they want to sell in China. Look at Google if you want to see what happens if they refuse. > Than maybe the EU can start there? I think tariffs work just as well and are less complicated. It's not like Chinese companies would accept the same conditions. End result will be the same, decoupling. Long term this is better, more industrial infrastructure in EU serving global market. Less support for Chinese companies if they're limited to home country, less industrial base there to go to war.

constantcrying 2y ago
>more industrial infrastructure in EU serving global market What? No EU companies will serve any kind of global market. That is the point of Tarifs. The companies will suffocate and loose any kind of actual global presence.
- adriancr 2y ago
  > What? No EU companies will serve any kind of global market. That is the point of Tarifs. Thats not how tarriffs work. What will happen is Chinese exports will have to pay tarriffs to enter EU. Most China can do is impose tarriffs or nationalize or whatever within their borders. So less China<->EU trade. More market in EU since China vehicles cant compete. Now... here it becomes nicer. US is also imposing tarriffs on China. All of South east asia+India will impose as well since most are afraid of going to war with them. So, more market where China cannot compete and EU companies can fill gap. As such, tarriffs are good long term, they lose access to X but gain access to 3-5X. They are bad for China since they are suddently overproducing and have nowhere to sell so they have to downsize, earn less, etc... They're also bad for China because if they go after JVs they no longer get access to free IP to steal.

constantcrying 2y ago

>more industrial infrastructure in EU serving global market What? No EU companies will serve any kind of global market. That is the point of Tarifs. The companies will suffocate and loose any kind of actual global presence.

adriancr 2y ago
> What? No EU companies will serve any kind of global market. That is the point of Tarifs. Thats not how tarriffs work. What will happen is Chinese exports will have to pay tarriffs to enter EU. Most China can do is impose tarriffs or nationalize or whatever within their borders. So less China<->EU trade. More market in EU since China vehicles cant compete. Now... here it becomes nicer. US is also imposing tarriffs on China. All of South east asia+India will impose as well since most are afraid of going to war with them. So, more market where China cannot compete and EU companies can fill gap. As such, tarriffs are good long term, they lose access to X but gain access to 3-5X. They are bad for China since they are suddently overproducing and have nowhere to sell so they have to downsize, earn less, etc... They're also bad for China because if they go after JVs they no longer get access to free IP to steal.