German Media: China's Technology is Too Powerful — Europe Must Quickly Deploy Tough Tools Against China: Technology Transfer in Exchange for Market Access

German online media RND also took note of the European Commission’s discussion on Friday, publishing a commentary the same day stating, "China is taking over one market after another around the world," yet Europe accounts for a quarter of China’s total exports and thus should have sufficient leverage to adopt a tough policy:

"The EU is moving toward conflict with China — even though no one in Brussels is willing to openly admit it. Beijing’s production is no longer aimed solely at meeting domestic demand, but rather at seizing economic dominance. Products that cannot be fully absorbed by its domestic market are now being pushed globally, with Europe being the primary destination."

The underlying strategy is clear. China does not want merely to play a role in the global supply chain — it wants to become its master. In the past, European industry relied on cheap components from East Asia; today, it is losing ground even in finished product manufacturing. Cars, machinery, solar panels, energy storage batteries — China is no longer just supplying intermediate goods, but full-fledged finished products."

The article calls for the EU to swiftly implement new trade policies toward China to curb Chinese imports:

"Yet tariffs and import quotas alone cannot save European industries. The technological gap in many future-oriented sectors is already alarming. Five years ago, Europe led in hydrogen electrolysis technology; today, it has been overtaken by China. In the past, Beijing’s advantage lay in low labor costs; now, robotics have become its strength: at NIO’s car factory, 941 robots operate non-stop 24 hours a day, fully automated without any human intervention."

The article argues that quota systems or tariff measures currently under consideration by the EU will be ineffective against China’s technological advancement:

However, “the EU possesses many other tools that must be utilized. For example, price exception clauses allow governments to prioritize European suppliers in public tenders, even if their bids are 25% higher. Furthermore, any Chinese company wishing to build a factory in Europe must offer something in return: technology transfer in exchange for market access. For decades, China has required foreign firms to transfer technology in order to conduct business locally. Now is the time for Europe to make the same demand."

The article concludes with a warning:

"The fear that a tougher stance will scare off Chinese companies is unfounded. The European market is crucial to China. About one-quarter of China’s exports go to the EU — no other region in the world can match the scale and importance of the European market. Europe must compel China to engage in fair trade."

Some EU countries, including Germany, remain hesitant, hoping instead to sell more cars and machinery to China through individual national-level actions and endless dialogue."

Source: DW

Original: toutiao.com/article/1866804120103936/

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