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The EU complains about China Shock equally as much as the US [0][1][2][3][4][5][6] Just becuase Trump burnt bridges with the EU doesn't mean that EU member sta
by alephnerd 1y ago
The EU complains about China Shock equally as much as the US [0][1][2][3][4][5][6]
Just becuase Trump burnt bridges with the EU doesn't mean that EU member states will gladly allow job losses across Europe's industrial heartland to a country that is supplying a direct competitor (Russia) that has conducted grey zone warfare within the EU
The EU and it's member states are all working on building domestic capacity, and pushing Chinese manufacturers to manufacture WITHIN the EU [7][8], and further diversifying by making FTAs with ASEAN [9][10], Japan [11], SK [12], India [13], etc.
In essence, nothing has materially changed in European policy with regards to China compared to under the Biden administration.
Chinese overproduction is a global issue now, and most major economies and blocs have enacted barriers and will continue to do so unless China removes it's barriers to imports, subsidizes, and technology transfers.
[0] - https://ecfr.eu/publication/electric-shock-the-chinese-threat-to-europes-industrial-heartland/?amp https://ecfr.eu/publication/electric-shock-the-chinese-threa...
[1] - https://www.cer.eu/publications/archive/policy-brief/2025/how-german-industry-can-survive-second-china-shock https://www.cer.eu/publications/archive/policy-brief/2025/ho...
[2] - https://www.gmfus.org/news/watching-china-europe-may-2025 https://www.gmfus.org/news/watching-china-europe-may-2025
[3] - https://www.chathamhouse.org/2021/07/eus-unsustainable-china-strategy/european-issues-china https://www.chathamhouse.org/2021/07/eus-unsustainable-china...
[4] - https://www.ecb.europa.eu/press/blog/date/2024/html/ecb.blog240903~57f1b63192.en.html https://www.ecb.europa.eu/press/blog/date/2024/html/ecb.blog...
[5] - https://www.iza.org/publications/dp/13259/hit-by-the-silk-road-how-wage-coordination-in-europe-mitigates-the-china-shock https://www.iza.org/publications/dp/13259/hit-by-the-silk-ro...
[6] - https://www.bloomberg.com/news/articles/2025-05-15/eu-economy-chief-urges-china-self-restraint-on-diverting-goods?embedded-checkout=true https://www.bloomberg.com/news/articles/2025-05-15/eu-econom...
[7] - https://www.economist.com/europe/2024/09/19/near-shoring-is-turning-eastern-europe-into-the-new-china https://www.economist.com/europe/2024/09/19/near-shoring-is-...
[8] - https://www.bruegel.org/sites/default/files/2024-07/The%20EU%E2%80%99s%20concept%20of%20de-risking%20hovers%20around%20economic%20diversification%20rather%20than%20national%20security.pdf https://www.bruegel.org/sites/default/files/2024-07/The%20EU...
[9] - https://www.reuters.com/world/china/sweden-propose-eu-membership-pacific-rim-free-trade-group-cptpp-2025-05-13/ https://www.reuters.com/world/china/sweden-propose-eu-member...
[10] - https://www.ft.com/content/bee31826-012d-4bb1-a6eb-d6cc0d4ef39f https://www.ft.com/content/bee31826-012d-4bb1-a6eb-d6cc0d4ef...
[11] - https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/japan/eu-japan-agreement_en https://policy.trade.ec.europa.eu/eu-trade-relationships-cou...
[12] - https://trade.ec.europa.eu/access-to-markets/en/content/eu-south-korea-free-trade-agreement https://trade.ec.europa.eu/access-to-markets/en/content/eu-s...
[13] - https://apnews.com/article/india-eu-modi-ursula-von-der-leyen-309ab4795ad0206b66fe20bef5ca9a92 https://apnews.com/article/india-eu-modi-ursula-von-der-leye...
- coliveira 1y agoWhat about the EU stopping its own subsidies first, before asking this from other countries?
- alephnerd 1y agoWhy not China. China spends 1.73% of it's GDP on subsidizes compared to 0.4-0.6% for France and Germany [0]. At least Germany and France open factories across the EU. Chinese manufacturers did not until the EU began tariffs actions. Furthermore, Chinese dumping in solar destroyed Germany's original lead in PV manufacturing, and China continues to force foreign manufacturers like VW to partner with Chinese SOEs. European nations may as well demand the same as well then. And Chinese dumping is something all nations are fighting - especially other developing countries like Vietnam, Indonesia, India, Brazil, Mexico, etc. [0] - https://csis-website-prod.s3.amazonaws.com/s3fs-public/publication/220523_DiPippo_Red_Ink.pdf?VersionId=LH8ILLKWz4o.bjrwNS7csuX_C04FyEre https://csis-website-prod.s3.amazonaws.com/s3fs-public/publi...
- fakedang 1y agoOr maybe the EU should subsidize more instead of policing around? The EU reminds me of the teacher's pet going around the playground, telling all the other children that they should follow the rules. But of course, the pet doesn't have a big stick, so nobody really bothers listening to him/her.
- alephnerd 1y agoI don't disagree with the EU's laggardness around changing economic tides, but if just about every major economic bloc and country is initiating trade barriers against China to protect their domestic industries, at some point the common denominator is China. And as I mentioned elsewhere, much of this overproduction would go away were Chinese consumers able to dip into their savings if China's social safety net was expanded and the CCP's Reaganesque opposition to "Welfarism" was toned down.
- 1y ago