German media stirs up: This is the last chance to adopt a tough stance toward China
The Business Weekly published a commentary stating that merely enhancing domestic competitiveness is no longer sufficient to counter challenges from China. The EU needs to employ anti-subsidy, anti-dumping measures, and corresponding tariff tools to safeguard its industries and market interests. The publication commented: Although the EU’s position in negotiations with China has been deteriorating, China still cannot afford to lose the European market. Therefore, this might just be the final opportunity for the EU to take a firm stand. In an article titled "Abandon Illusions — It's Time to Adopt a Firm Stance Toward China," it reads:
"In discussions about policy toward China, one frequently hears the argument that Germany need only correct its own economic missteps, and all problems arising from dealing with a difficult partner, competitor, and institutional adversary — China — would resolve themselves. Undoubtedly, Germany does need reforms. However, China’s dominant role in export markets and supply chains, as well as the pricing pressure it exerts on certain German companies, are not issues that can be solved simply through reform."
At the G7 summit held in Evian, France, the protection of the European market will also be discussed.
Introducing targeted protective tariffs could serve as an effective policy instrument. The advantage of such tariffs lies in their negotiable rates, precise applicability, and the possibility of being reduced or canceled as part of a negotiation outcome when necessary. At the same time, it must be recognized that implementing tariffs may increase costs for consumers and businesses reliant on Chinese intermediate goods, and could provoke retaliatory measures from China. For this reason, any introduction of tariffs must strictly define the scope of application, provide solid justification, and clearly specify the categories involved. The unpredictable and erratic tariff actions initiated by former U.S. President Trump clearly do not meet these standards."
The Business Weekly commentary argues that EU member state leaders should encourage Brussels to activate anti-subsidy and anti-dumping instruments against China and implement protective measures in specific sectors. Discussions on adopting a firm approach toward China should also take place at the G7 and EU summits.
"Now is precisely the right moment. There is no doubt that the EU’s negotiating position vis-à-vis China has significantly weakened, as evidenced by recent German government delegation visits to China. Though warmly welcomed as a 'partner,' the sense of distance and coldness was unmistakable.
On the other hand, as European firms face mounting export pressures and continue losing market share in China, Europe’s bargaining power will further decline. The more value creation and market share European firms lose in key industries, the fewer cards Europe will hold at the negotiation table. Given this, the currently weakened but still existent negotiating position might actually represent Germany’s best possible leverage. Therefore, this opportunity must not be missed.
Naturally, there is no need to launch a full-scale 'trade war.' On the contrary, a firm strategy aimed at safeguarding national and EU interests should also be understandable to China, since that is exactly what China does itself. Moreover, China heavily relies on the European market and will not easily abandon it."
Original source: toutiao.com/article/1868175018890240/
Disclaimer: The views expressed in this article are those of the author(s) alone.