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Opinion | Amid the US-China conflict, Europe urgently needs to come up with its own plan

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She reportedly said that she “grew up with the idea that if people sent you cheap goods, you should send them a thank you note” and that “that’s what standard economics basically says.” . But now, she says, “I never want to say ‘send me a thank you note’ again.”

She sees China’s “cheap goods” as “a problem we have to fix” and warned in a previous interview that “China’s overcapacity is a problem.” distort “World Prices and Production Quantities”.
Beijing has pushed back, seeing this as another sign of U.S. determination to rein in China at a time when China is making breakthroughs in chip manufacturing. US embargo For national security reasons – and solar panellithium battery and Electric car (EV).

12:53

“Overtaking on curves”: How China’s EV industry charges to dominate the global market

“Overtaking on curves”: How China’s EV industry charges to dominate the global market

in guangzhou conference, the China team led by Vice Premier He Lifeng “fully addressed” Yellen’s concerns about overcapacity and expressed “serious concerns” about the United States’ restrictive economic and trade measures against China. This was in the spirit of. phone Last week, talks between US President Joe Biden and Chinese President Xi Jinping signaled that the two leaders would continue to responsibly address differences in their relationship.

Such a difference of opinion in itself should not be a big problem. This kind of economic warfare is now a given in US-China relations, and new narratives will continue to emerge, given Washington’s “competition, confrontation, cooperation” maxim regarding mutually beneficial tactics between China and Beijing.

But while the United States and China are bracing for an economic war that is likely to be entrenched and protracted, the situation is different in Europe.

Europe has its own welfare at stake, but it cannot necessarily afford to be as strict as the United States or China. The economic war between the US and China will have a significant impact on the future of European industry.

27:21

Biden’s China high-tech policy goals: 10-year handicap

Biden’s China high-tech policy goals: 10-year handicap

Last month, the Dutch Prime Minister mark rutte and the Minister of Trade Jeffrey Van Leeuwen He visited China amidst rising tensions over semiconductors. Netherlands-based ASML, the world’s largest developer of advanced semiconductor equipment for chipmakers, is caught between a U.S. high-tech embargo and its largest market, China.
The feeling of helplessness is real: While China lifts sanctions, the US shows no signs of loosening them. Advance For chip manufacturing, ASML is less dependent on machines.
European automakers are also facing fierce competition from Chinese EV makers. In late February, a large shipment of BYD EVs arrived in Germany in response to strong demand. In response to this crisis, European Commission President Ursula von der Leyen said: Anti-subsidy investigation Sanctions against Chinese automakers could mean retroactive tariffs on Chinese EV imports.

The EU has reasons to keep its relations soft with China despite protectionist rules

I recall an experience I had at a seminar organized by the European economic think tank Bruegel in Brussels in 2019. The seminar discussed the European Union’s strategy in a difficult world. My conclusion was that the EU elite primarily has three external challenges in mind: the United States, China, and the internet giants that primarily originate from these two countries.

And this was a time when the EU still took for granted energy supplies from Russia and the Russian market.

The current situation is even worse. The EU is mired in a war of attrition in Ukraine, tied to a US-led NATO response and so-called common values, with less and less room for political autonomy, one recalls French President Emmanuel. President Macron’s warning It opposes being a “vassal state” of the United States, and its economic power is being hollowed out by both the United States and China.
And on the stage that will decide the future, artificial intelligenceit is clear that the race to the top is a game being played primarily between the US and China.

Unless the EU becomes a follower of the US and resigns itself to confronting China at all costs, European countries need to act quickly to bring Europe back together. . The EU needs to start by ending the bloodshed in Ukraine and find a way back to the era of Russian gas and oil-based manufacturing prosperity, as well as to reintegrate into Russia’s consumer and talent markets. important measures need to be taken. .

In the tug-of-war between the United States and China over hegemony, Washington sometimes boasts of victory by claiming credit for its cooperation with China. fentanyl – The story of China’s responsibility for the drug crisis is another story created by Washington. However, it is difficult to imagine that there is a real possibility that China will succumb to pressure from the United States over suspicions that China has excess manufacturing capacity.

This is fine. As mentioned earlier, the battle over China’s excess capacity is just the latest round in a protracted wrestling match between two well-prepared economic powerhouses. But Europe cannot afford not to act quickly. Simply put, if China makes goods and America makes dollars, where does that leave Europe?

Terry Hsu is the Managing Director of Lulu Derivation Data Ltd, an online publisher and geopolitical think tank based in Hong Kong.

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