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The EU has recently been preoccupied with trade issues with China, especially in the field of agricultural products. Calls from brandy producers almost "flooded" the offices of EU officials, and pork and dairy producers followed suit, demanding more compensation.
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Von der Leyen, the president of the European Commission, has set out three major conditions for China at this juncture, and it seems that he intends to "extort money" from China. But things are more complex than they seem, and the politics behind them make the trade dispute even more difficult to resolve.
Von der Leyen's "extortion of bamboo" action against China originated from the temporary anti-dumping measures against brandy. This move may seem to be sector-specific, but its impact has spread to multiple sectors of the EU's agricultural products, and the uproar on the phone line is just the tip of the iceberg. The Chinese side reacted quickly and launched a set of methodical "combination punches".
In just a few months, China has not only prepared trade countermeasures, but also made investment promises to the EU that could be embarrassing. This is not an ad hoc approach, but rather a consistent hard-line and flexible approach to China's response to external trade pressures.
There have been eight rounds of consultations between the European Commission and China, each of which has been accompanied by huge differences between the two sides. As recently as October 12, the Chinese team returned home with disappointment with the EU's intransigence stance. The price commitment proposed by the Chinese side was not accepted by the EU, which became the main reason for the stagnation of the negotiations.
China's proposal is to impose a minimum price control on all electric vehicles exported to Europe to avoid tariffs imposed by the EU. However, the EU prefers to negotiate with individual companies in an attempt to divide China's position. This approach not only complicates the negotiation process, but also exposes the EU's strategy of trying to divide and conquer.
At the same time, von der Leyen continues to push for tariffs on China, while trying to find a way out through negotiations. She set out three major conditions: asking China to provide other forms of compensation to replace the existing countervailing tariffs; Require Chinese automakers to make price commitments to control the price of electric vehicles; It is also hoped that Chinese automakers will increase their investment in Europe.
These three points seem reasonable, but in China's view, they are undoubtedly forcing China to make too many concessions. And all this is nothing more than von der Leyen's attempt to protect the interests of industry within the EU.
Moreover, the EU is not monolithic, and several countries led by France have long been eager to promote tariffs on China, believing that this can gain more competitive advantages in the electric vehicle industry. However, Germany is on the side of the opposition, and the Chinese market is no less important to Germany's automotive industry.
Germany's automotive industry has already entered the Chinese market, and any trade friction with China will affect the interests of these companies. This also explains why Germany Chancellor Olaf Scholz, in his meeting with von der Leyen, expressed the hope that a negotiated solution would be resolved rather than rush into tariff policy.
Despite this, though, von der Leyen's attitude has not relented significantly. In her discussions with Germany, she insisted that the EU's tariff policy must continue, but she also promised to continue to look for solutions to the problem. This means that while tax hikes are inevitable, she is also aware that China's countermeasures could have a huge impact on all sectors of the EU.
However, behind the EU's tariffs is not only an economic consideration, but also a political game. In the eyes of many, von der Leyen's tariff policy is not simply to protect the EU auto industry, but to "do things" for the interest groups behind United States.
This also explains why the EU's tariff proposal was initiated by the Commission in the absence of an EU industry complaint. This action is clearly taking place against the backdrop of the Sino-US trade friction, and von der Leyen is trying to strengthen the EU's voice in global industrial competition. However, this move also complicates the situation in the negotiations between China and the EU, and may even be derailed at any time by the intervention of United States.
Against this backdrop, China's countermeasures are no longer limited to the electric vehicle industry. The Chinese side has informed Brussels that if the negotiations continue to stalemate, it will launch countermeasures against a number of sensitive economic sectors of the EU in November and suspend investment cooperation. The brandy industry was the first to feel the pressure, with China's Ministry of Commerce announcing an anti-dumping deposit of up to 39% on brandy products.
Subsequently, other industries within the EU also felt the potential threat, and tensions from pork and dairy producers spread rapidly, and they demanded that the EU extend compensation policies to the broader agricultural sector. As a result, the Commission's "coffers" are under severe pressure, and an increase in compensation payments could have a huge impact on the EU's internal finances.
But at this time, the United Kingdom has chosen a very different route from the EU, and the United Kingdom has made it clear that it will not impose tariffs on Chinese electric vehicles. This statement undoubtedly makes the EU appear more isolated in its China policy, and United Kingdom's move appears to be aimed at maintaining economic ties with China, but in fact it is more like paving the way for senior officials to visit China.
Since Brexit, the United Kingdom has been trying to establish bilateral trade relations with countries around the world, and the Chinese market is clearly an important partner that the United Kingdom cannot ignore. At this juncture, the United Kingdom has chosen to distance itself from the EU, perhaps in order to find its own balance in the Sino-European trade dispute.
Now, the trade dispute between China and the EU not only affects the electric vehicle industry, but also affects the wider industry, and even threatens the economic interests of many European countries. As November approaches, China's countermeasures are on the way, and divisions within the EU are becoming increasingly difficult to reconcile.
By now, von der Leyen and the EU's choice on trade with China is no longer just a simple economic measure, but also an intricate political wrestling. China's response demonstrates its resilience and strategic position in global trade. The curtain of the trade war between China and the EU has been opened, and the next round is destined to be more intense.
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"After China's countermeasures, "the EU's decision was blown up by agricultural product dealers"——Observer.com2024-10-14 18:47
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