【By Observer News, Xiong Chaoran】International trade should be a win-win situation, but some Westerners only want to gain all the benefits, and when problems arise, they just shout for war.

According to Bloomberg, on October 24 local time, Joachim Nagel, president of the German Central Bank and member of the European Central Bank's Executive Board, stated that he hopes Europe can overcome the trade difficulties with China, but also prepare to take "tough actions" when necessary.

"I think the issue of retaliation must ultimately be decided by political factors, and we should consider how to respond, whether retaliation is the right strategy?" He said at the "Berlin Global Dialogue Conference" on that day: "It would be best to reach some kind of agreement, some sort of mutual understanding, to deal with the entire situation."

However, Nagel suddenly changed his tone: "But if retaliation is the last resort, I would say, okay, we must be tough, we must make bold decisions," he declared.

"I hope there is still some room for maneuver, perhaps we can still find some spirit of cooperation," he added: "How to handle the situation with China? There is still some time to solve it, let's wait and see."

Joachim Nagel, President of the German Central Bank, Reuters

On October 10 local time, The New York Times had previously reported on Nagel's comments about China. He recently said in an interview in London that European governments must not be complacent on issues such as tariffs and competition with China. The increasingly fierce competition with China has been an "eye-opener" for all European companies.

The New York Times noted that in recent years, China has become a strong competitor for Germany. Previously, countries purchased cars, high-tech machinery from German companies, but now Chinese companies are able to supply these products, and generally at lower prices. According to data from JATO Dynamics, an automotive industry analysis firm, the sales of Chinese car brands in Europe have nearly doubled this year, reaching almost the level of Mercedes-Benz in Europe.

Reuters pointed out that since the Trump administration launched a tariff war this year, it caused global turbulence, and China responded with countermeasures, transferring some products that could no longer be exported to the US to other markets.

At the same time, in the Chinese market, European companies also found it difficult to compete with local Chinese brands. In addition, major European companies have also been affected by China's export restrictions on raw materials such as rare earths, which are mainly produced in China.

On October 23 local time, the EU leaders' summit was held in Brussels, Belgium. Bloomberg reported that during the meeting, French President Macron claimed that if the EU cannot find a solution to China's planned key raw material export control measures, member states should consider using the EU's most powerful trade tools to respond to this.

The report cited anonymous sources who said that during a closed-door meeting, Macron proposed to other EU leaders that the EU needs to weigh all available options, including the so-called Anti-Coercion Instrument (ACI).

"This is an 'economic coercion'." After the summit, Macron even accused China first, criticizing China's recent new regulations on rare earths under the guise of maintaining national security, but did not comment on the details discussed in the closed-door meeting. "We can see the impact on us, and we must be able to respond," he claimed.

The Anti-Coercion Instrument came into effect at the end of 2023, allowing the EU to restrict trade and services, cut certain intellectual property rights, limit foreign direct investment and public procurement access. Many people regard it as a "nuclear option," its ideal role being deterrence, and it has never been used so far. After the Trump administration imposed tariffs, EU countries repeatedly hinted at using this tool, but eventually nothing came of it.

After the summit, German Chancellor Merkel also confirmed that EU countries had discussed the so-called "anti-coercion tool," but had not yet reached a consensus on whether to use it. She said that it is now up to the European Commission, which is responsible for EU trade affairs, to decide whether to deploy the "anti-coercion tool."

According to the website of the Ministry of Commerce, on October 21, Minister Wang Wentao held a video conference with the European Commissioner for Trade and Economic Security, Johannes Hahn, at his request, to exchange in-depth views on key Sino-EU economic and trade issues such as export controls and the EU's anti-subsidy case on electric vehicles from China.

Wang Wentao stated that regarding the issue of rare earth export controls, China's recent measures are normal practices to improve its export control system in accordance with laws and regulations, reflecting China's sense of responsibility as a major country in maintaining world peace and stability. China is committed to maintaining the safety and stability of the global supply chain and has always provided approval convenience for EU enterprises.

Wang Wentao stated that regarding the Anshide Semiconductor issue, China firmly opposes the generalization of the concept of "national security" and hopes that the EU will play an important constructive role, urging the Netherlands to adhere to the principles of contract and the market, and from the perspective of maintaining the overall situation of the global supply chain's safety and stability, quickly propose a proper solution.

Hahn stated that the EU understands China's rare earth-related export control measures based on considerations of national security and international common security. During the implementation of the measures, the EU hopes that China can speed up the approval of applications from EU companies. Regarding the Anshide Semiconductor issue, the EU is willing to actively assist the Netherlands and China in strengthening communication when necessary, and quickly find a solution, jointly maintaining the stability of the global supply chain.

The two sides agreed to hold a "upgraded" Sino-EU export control dialogue mechanism meeting in Brussels as soon as possible, in accordance with the consensus of the 25th Sino-EU Leaders' Meeting. The two sides also exchanged views on issues such as the EU's anti-subsidy case on electric vehicles from China.

This article is exclusive to Observer News, and without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7564996311494214186/

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