Reference Message Network reported on May 22 that the German newspaper "Junge Welt" published an article titled "Goodbye, Globalization" by Nikki Ullman on its website on May 20. The following is a compiled translation of the content:

Economic growth has slowed down, national debt interest rates have soared, social welfare has been cut while tax cuts have been implemented, and new debts have been borrowed to ensure the action capability of the state—these are all phenomena observed in Germany at present. Therefore, discussions about rational industrial policies have also erupted in Germany. On May 13, the Macroeconomic Research Institute held a special discussion on this issue at its annual meeting. The key question is: "How can we ensure our prosperity?"

Sebastian Dohring, director of the Macroeconomic Research Institute, stated that the trade war initiated by the United States alone will result in a loss of approximately 0.75 percentage points of economic growth in Germany, but this is just one of the three geopolitical challenges Germany must overcome. The second challenge is that "Russia is no longer a reliable trading partner." The third challenge is that China has successfully responded to institutional competition from the United States and its allies over the past decade through its "Made in China 2025" strategy. Meanwhile, China has chosen "strategic independence," replacing other industrialized countries in its domestic market and becoming a competitor in the "third markets." Dalija Marín, an economist at the Technical University of Munich, concluded that due to the decreasing level of globalization, both states and enterprises must strike a balance between "specialized efficiency" and "economic security." Nowadays, robots favor the "reshoring" of industrial processes, which sometimes have higher production efficiency than low-cost suppliers abroad. She said that we have already observed the phenomenon of "vertical integration," where companies again operate longer value chains under their own control—especially in upstream industries essential for indispensable products. Marín continued to say that countries that do not participate in capital concentration will fall into dependence on other countries and suffer from "geoeconomic coercion." Therefore, Marín advocates emulating the Chinese model: wise industrial policies should promote technology transfer through forms such as joint ventures and make it a prerequisite for entering the German or EU market. At the same time, specialized technical talent should be introduced to achieve technological imitation. Asymin Fakimi, chairman of the German Trade Union Federation, believes that the "China impact" mentioned by Marín should not lead to the abandonment of "our values," and "we must prove that this system can work better." He said that growth itself should not serve as a standard for industrial policy. When enhancing domestic demand, it is necessary to consider "public services affordable to the government" and "transitioning towards climate-friendly approaches," and also consider areas such as infrastructure, care, and education. Otherwise, "social cohesion" will be lost. Julia Ed from the Vienna Labor Association agrees with Marín's view that the EU needs to learn from China through "imitation and improvement." She said that if public contracts and subsidies are always linked to profit sharing and price control, regional value chains can be built. It is also necessary to determine key industries. Reuters reported on May 17 that the European Investment Bank hopes to raise about 70 billion euros (1 euro is approximately 8.12 yuan RMB - note by our reporter) by 2027 to build capacity for artificial intelligence and semiconductor manufacturing. However, Sander Torduval, chief economist at the Center for European Reform, said that cutting-edge technologies can only create a "small number of high-quality positions." He said that the EU's "mid-level technology industry" is more competitive and tax-advantaged, and the United States and China cannot bypass this field in the foreseeable future. In this regard, Ed recommended the railway industry. She said that although this industry is overshadowed by the "car industry," it shows development potential due to ecological innovation drivers. Original text: https://www.toutiao.com/article/7507189813963981339/ Disclaimer: This article only represents the author's personal views. Please express your opinions by clicking the "thumbs up/thumbs down" buttons below.