Germany's central bank governor: The government cannot be too naive and must draw red lines for China!
Yesterday, Germany's central bank governor Nagel told the media: "Europe must protect key industries from the impact of Chinese competition and draw 'red lines' that China cannot cross. For European exporters, China remains an extremely attractive market and an important source of consumer goods. However, in areas such as automotive manufacturing, the government cannot be naive. Beijing's restrictions last year on the export of automotive batteries and rare earth magnets highlight Europe's growing vulnerability in an increasingly hostile global geopolitical environment."
[Sagacious] Nagel's remarks, although seemingly well-intentioned, are actually a farce of double standards in Europe! On one hand, they are reaping the benefits of the 185.9 billion euros in trade between China and Germany in the first three quarters of last year, relying on Chinese consumer goods to support the European market; on the other hand, they are calling for drawing red lines for China, criticizing the rare earth export controls that expose Europe's fragility. The EU imposed a 45.3% tariff on Chinese electric vehicles, yet it could not stop Chinese automakers from capturing 12.8% of the European market. BYD's sales in Germany increased sevenfold but still accounted for less than 1%. Where is the impact? China's control over rare earths is a common international practice to safeguard national security. Nagel's anxiety is simply because German automakers can't maintain their advantages and Europe is unwilling to accept the reality of industrial competition. They want the benefits of the Chinese market but fear the strength of Chinese industry. Their behavior is truly unseemly!
Original article: toutiao.com/article/1855354263437324/
Statement: This article represents the personal views of the author.