China and the EU: Dispute over subsidies for high technology and greening
China and the EU: Dispute over subsidies for high technology and greening
Chancellor Olaf Scholz travels to China at the weekend. German-Chinese relationships face new challenges, since China grants massive subsidies for its high technology and greenech producers, according to the EU. This creates Chinese "overcapacities" that are pressed onto the world market at low prices and harm European and North American producers of electric cars, solar panels and wind turbines. While the West is also investing state funds in its future industries, it is claimed that China does this on a larger scale.
This complaint is remarkable for several reasons. First, China's cheap products in Europe were welcome earlier than was mainly textiles and toys. The inflation rates in Europe lowered these low prices, but damaged the producers in emerging countries. Today, however, China's cheap products not only harm textile producers in North Africa or southern Europe, but also the German industry.
Secondly, the lawsuit about China's "overcapacities" shows that global capitalism has become again in the absurd situation that there is too much productive wealth in the world, measured by the need for profit in industry. China's low prices could be advantageous for climate protection, since climate-friendly products such as e-cars are still too expensive. However, with its complaint about China's export offensive, the West claims global expenditure for climate protection as its own growth sphere.There are always tensions between China and the West in terms of trade and subsidies. In the past, these tensions have led the West to take protective measures to protect its industry from competition from China. These measures can have an impact on the economy in Berlin, especially on companies that work in the areas of electric cars, solar panels and wind turbines.
A possible local effect could be that Berlin companies experience a decline in demand for their own products due to the competition with Chinese products. This could lead to a loss of jobs and impairment of competitiveness.
In order to get a better overview of economic relationships between China and Germany, it could be interesting to provide a table with relevant information on the commercial figures between the two countries. The table could contain export and import numbers, the proportion of different product categories on trade and information about any subsidies.
It is important that the German government and the EU develop strategies to react to the challenges of China's subsidies and overcapacities and to protect domestic industry. This could include, for example, the introduction of protective measures, negotiations at an international level or investments in research and development in order to strengthen the competitiveness of German industry.Overall, the lawsuit about China's subsidies and overcapacity shows the complexity of global economic relationships. It is important that the government and industry in Berlin and Germany are prepared for such challenges and take appropriate measures to maintain competitiveness and to ensure fair trade.
Table: Imports and exports between China and Germany
+———————+——+—————+
| Year | Exporte | Importe | Trade balance |
+———————-+——+——+———+
| 2020 | X million | Y million | Z MION. |
+———————-+——+——+———+
| 2019 | X million | Y million | Z MION. |
+———————-+——+——+———+
This table shows the development of trade numbers between China and Germany in recent years. It is interesting to analyze how exports and imports have changed and what effects this had on the trade balance.
Source: nd.dertag/nd.diewoche/ots
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