The EU is having a radical rethink of how to cope with the trade threat from Beijing — and its response has a very Chinese flavor to it.
Over the past years, EU trade policy has traditionally focused on building protective fortress walls, and last week’s decision to impose punitive tariffs on Chinese electric cars initially looked like another example of the classic defensive playbook in Brussels.
In a remarkable turn of events, however, the EU is now considering a next step that invites China’s electric vehicle (EV) makers inside the walls.
The big idea is to use the tariff threat to force Chinese carmakers to come to Europe to form joint ventures and share technology with their EU counterparts, according to conversations with four diplomats and two senior officials.
There are signs the formula is already attractive with EU carmakers. Franco-American-Italian carmaker Stellantis has formed a joint venture with China’s Leapmotor to start Europe operations in September. Spain’s EBRO-EV has teamed up with Chery — China’s fifth-largest automotive company — to develop EVs in Barcelona.
The reason why subsidies in the US lead to corruption and subsidies in China lead to innovation has nothing to do with how long the industries have been subsidized.
The US subsidizes industries to bailout corporate executives that made bad decisions.
China subsidizes workers who innovate towards ends that we know we need to be working towards as a species. Such as building electric vehicles to address climate change.
Even if the economy worked how you’re suggesting addressing climate change would be a worthy investment. It’s an end that has been obvious that we should be investing in for decades. The US refuses to do it because it would take power out of the hands of the corporate executives who they are busy bailing out.
This is logically incoherent. Money doesn’t exist in nature my dude.
Take out a physical dollar and look at it… what does it say on it? If you do this you will find it says it’s a note from the federal reserve.
Every US dollar in existence was originally spent into the economy by the federal reserve which is managed by the US government. That is a matter of fact. To suggest money comes from taxes is incoherent. Taxes are how the government destroys money not how it creates money.
Now maybe to control inflation we should take money out of the economy through taxes. Especially in places where money is being mismanaged… if we do, the aforementioned corporate executives seem to be at the top of the list of places where large amounts of money is being mismanaged. Given that in the context of the automotive industry China is managing their wealth better than the US.