German media: Faced with strong competitive pressure from China, Germany and Europe need to adjust the relevant legal framework
Competitiveness and Competitive Order
The Frankfurter Allgemeine Zeitung commented that, faced with strong competitive pressure from China, Germany and Europe need to adjust the relevant legal framework.
"A case involving Siemens and Alstom is very illustrative. Both the EU and China have antitrust laws that review corporate mergers, but the economic and political systems of the EU and China are completely different. In China, the merger of the two largest railway manufacturers was approved in order for Chinese companies to better access the global market. However, in the EU, the merger of Siemens and the railway division of French Alstom was prohibited, on the grounds of maintaining enterprise competition within Europe. The result is that a European company that could have competed globally against Chinese railway giants died in the womb due to EU regulations.
From today's perspective, the EU's above decision was clearly wrong. If you want to respond to other countries' industrial expansion policies by strengthening domestic competition, it is clearly confusing the concepts of orderly competition and an unregulated market. In any case, a decline in competitiveness will ultimately lead to a decrease in wealth.
The case of Siemens and Alstom shows that in the context of global chaotic competition, implementing overly strict antitrust laws in the domestic market can actually benefit countries that undermine free competition. Critics who oppose amending antitrust laws should be clear that considering international competition factors in antitrust policy helps offset losses caused by foreign distortion of competition relationships."
Original: www.toutiao.com/article/1848719894037704/
Statement: This article represents the views of the author.