FT: China only sells and doesn't buy, making trade impossible
Author Robin Harding. He finds that eventually Europe will have nothing that China needs, although now China still buys higher education, luxury goods, semiconductors, software, commercial aircraft, and the most advanced production machinery, but they are all developing them on their own. However, Europe does not have soybeans or iron ore. The author also agrees with China's motivation for self-sufficiency, but can't find a way out for Europe. Finally, the author believes that Europe's move towards protectionism is inevitable, although it is ugly.
This matter needs to be clear. Why is Europe's competitiveness poor? Is it because of welfare and regulation, or because of people? First, think clearly about this question. If you accept that Europeans are not capable, then this issue becomes easy to understand. Europeans can work hard and do scientific research, which is one way. If you don't want to work hard and want to make big money from bad products, it's really not understandable. Finally, arriving at "protectionism" means taking the path of developing countries. Many countries have done it, and if you don't develop well, it's not a solution. If people are not capable, it will lead developed countries to become developing countries, first bankrupt, then poor. Protectionism can't solve the problem, and in the end, you still have to learn.
"Well, how can you blame us?" After agreeing with China's desire for self-sufficiency, the conversation usually continues, "When you see how the US uses export controls as a weapon to suppress us, you need to understand the deep sense of insecurity that China feels."
This is reasonable, and there's no fault. But this raises my point to the person I'm talking to, and now I also tell you: If China is unwilling to buy anything from us, how can we trade with China?
"For Europe, there is only a difficult solution and a bad solution. The difficult solution is to become more competitive, to find new sources of value, just like the US has done in the technology industry. This means more reforms, reducing welfare and reducing regulations: not because welfare and regulations are bad themselves, but because they are unaffordable in the face of competition."
"However, even so, in a world where China provides everything for export at low prices and has no interest in imports, this is still not enough. You have no choice but to rely on domestic demand. This leads to the bad solution: protectionism. Today, especially in Europe, if you want to retain any industry, it's hard to avoid large-scale protection."
Original: www.toutiao.com/article/1849905949127744/
Statement: This article represents the views of the author himself.