cross-posted from: https://scribe.disroot.org/post/11957012
- EU leaders have asked the European Commission to develop a proposal by the end of the year for the new powers, which would be deployed in an extreme case where a rival was seen as attacking the EU’s economy.
- The commission is also evaluating trade data to consider replicating a cap on hybrid car imports in other sectors where shipments from China may be surging, including chemicals and machinery.
The European Union is preparing to create new trade powers that could completely shut off access to its single market as part of a dramatic new push to cut the trade deficit with China. EU leaders meeting in Brussels Thursday asked the European Commission, which handles trade matters for the bloc, to develop a proposal by the end of the year, according to people familiar with the matter. The powers would be deployed in an extreme case where a rival, such as China, was seen as attacking the EU’s economy. “If China engages in certain unfair trade practices, we could restrict the entry of Chinese products into the European market, including a complete closure of our market,” Lithuanian President Gitanas Nauseda told reporters on the sidelines of the summit. “That would be an extreme measure, a drastic instrument.”
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As part of a rapidly expanding arsenal of trade powers, the commission has also begun evaluating trade data as a first step toward replicating a cap on hybrid car imports in other sectors where shipments from China — or other countries — may be surging, said a separate person, who spoke on the condition of anonymity.
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The instrument that could be used to shut off access to the EU’s single market is seen as a so-called second-strike measure, the people familiar with the plans said. Its existence is intended to deter rivals from using unfair policies to weaken European companies or from starting a trade war against the EU with retaliatory measures.
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Good. They have been using the Eu as a dumping ground for a while.
Dumping ground for the things that Europeans keep buying?
I was thinking more about heavy industry.
The chinese are making a big push to put the eu wind industry out of business by dumping wind turbines at below cost on the market. Once the eu manufacturers go out of business, they will then up the price and yet another market will be held hostage by the chinese.
Yes, but this isn’t only limited to the wind industry but to all sectors. And, more importantly, China aims to use this later as leverage for all kinds of economic and political coercion trying to achieve other goals unrelated to these industries (Taiwan, Philippines, human rights, …).
It’s noteworthy that China is exploiting it’s own labour force to produce cheap goods, which includes the use of forced labour and a 996 working culture that is widespread (despite it’s illegal). Also, environmental regulations are very weak in China.
This seems logical, but how do you place the case with solar? I think the same thing happened circa 2010, but solar is cheap today.
I mean, I’m all for developing and maintaining local innovative industries, but that’s not what policy EU governments tend to enact. It most often devolves into some kind of protectionist infighting that revolves around expensively reinventing wheels.
I don’t think you can equate the two. Anyone can buy solar and put it not their roofs, it’s become more of a commodity.
While these giant wind turbines are more industrial infrastructure investment.
Dumping ground for the things that
Europeansthe whole world keep buying.Racist garden enjoyer has entered the chat.