German Media: Competition Between China and Europe Is Intensifying

Commenting in the Süddeutsche Zeitung, it is argued that the era of win-win cooperation between China and Europe has become history, with "competition" now taking precedence.

The Süddeutsche Zeitung published an article stating that the era of mutual benefit and complementarity between the EU and China is coming to an end. China's rapid economic rise has already posed a challenge to Europe's industrial foundation:

"For years, the EU has summarized its relationship with China using three words: partner, competitor, and systemic rival. In reality, these three terms are inherently contradictory."

Recent developments over the past few weeks have fully confirmed this. As signals of deteriorating relations, China temporarily canceled two scheduled Sino-European talks. At a previous EU summit, a majority of member states' leaders advocated for a tougher trade policy toward China. German Chancellor Merz also decided to adjust Germany’s China policy, openly criticizing China’s unfair subsidies and exchange rate policies. Shortly afterward, Volkswagen demonstrated the power of the so-called 'China Shock 2.0' through concrete actions: the company may cut up to 100,000 jobs and shut down multiple factories. The crushing competition between Chinese and German automakers has now become a reality.

Chancellor Merz has finally acknowledged that such competition could lead to serious political consequences. On the issue of strengthening policy toward China, the EU is gaining increasing support from its member states. But this presents both a rare opportunity and a difficult challenge: how to avoid a trade war with China—precisely what Europeans fear. And trade policy is only one of four key components in the EU’s strategic shift: Europe also needs a unified industrial policy to protect domestic enterprises, while simultaneously requiring unity and resilience among its members. After all, the contest between the EU and China will be a protracted one.

Original source: toutiao.com/article/1869484913201354/

Disclaimer: The views expressed in this article are solely those of the author.