1Mo
Wait and see China's reaction! 😈
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@Epi I'm also afraid that there's another big stick waiting for the carmakers. But that's why I don't understand the upswing right now... it's foreseeable that there will be a backlash
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@VanillaGorilla The current upswings in China are often only brief, see LVMH.
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1Mo
@Epi China will just remove it's investment from Western countries such as Spain and Italy ( which voted for the tariffs ) and impose heavy tariffs on European products.
in 2023 China weighted for 8.8% of EU exports and 20.5% of its imports. EU here have more to loose than win.
In 2023, EU exports to China of manufactured goods (88 %) had a much higher share than primary goods (11 %). The most exported manufactured goods were machinery & vehicles (51 %), followed by other manufactured goods (19 %) and chemicals (18 %).
In 2023, EU imports from China of manufactured goods (97 %) also had a much higher share than primary
goods (3 %). The most imported manufactured goods were machinery & vehicles (57 %), followed by other manufactured goods (31 %) and chemicals (8 %).
EU just shot itself in the foot to save a car industry that, let's be honest, isn't that great nor competitive anymore outside of the Luxury Car sector.
I'm not interested in acquiring a BYD car, I'm more into Japanese stuff honestly, even if I'm curious to just try one, but I'm definitely not interested in a Volkswagen or an Audi or a Peugeot / Renault.... Either too expansive, or lack of tech outside of the many payable options, sometimes heavy drinker of fuel, or requiring too much maintenance and so on. The myth of the accessible European cars for al Europeans is dead.
in 2023 China weighted for 8.8% of EU exports and 20.5% of its imports. EU here have more to loose than win.
In 2023, EU exports to China of manufactured goods (88 %) had a much higher share than primary goods (11 %). The most exported manufactured goods were machinery & vehicles (51 %), followed by other manufactured goods (19 %) and chemicals (18 %).
In 2023, EU imports from China of manufactured goods (97 %) also had a much higher share than primary
goods (3 %). The most imported manufactured goods were machinery & vehicles (57 %), followed by other manufactured goods (31 %) and chemicals (8 %).
EU just shot itself in the foot to save a car industry that, let's be honest, isn't that great nor competitive anymore outside of the Luxury Car sector.
I'm not interested in acquiring a BYD car, I'm more into Japanese stuff honestly, even if I'm curious to just try one, but I'm definitely not interested in a Volkswagen or an Audi or a Peugeot / Renault.... Either too expansive, or lack of tech outside of the many payable options, sometimes heavy drinker of fuel, or requiring too much maintenance and so on. The myth of the accessible European cars for al Europeans is dead.
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1Mo
@Jo_Wolf On the other hand, you also have to realize that China has internal problems and is unlikely to have any particular interest in a trade war. If the US escalates the trade war with China, who is China supposed to trade with? They also need European products in order to steal the technology - that has been China's business model for the last few decades: save the development costs and build cheaply.
The real problem seems to me to be the lack of innovation in Europe. That's why the cars are no longer competitive and are latently too expensive. And if I look at education policy, it won't get any better in the next 10 years. Protectionism is always a sign of weakness.
The real problem seems to me to be the lack of innovation in Europe. That's why the cars are no longer competitive and are latently too expensive. And if I look at education policy, it won't get any better in the next 10 years. Protectionism is always a sign of weakness.
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1Mo
@Epi Of course China needs Europe, but Europe needs China more than China needs Europe.
You must take into account that China still have a large pool of population which has not gotten out of poverty yet and that is developing its social status. To make it simple, the Chinese population gets richer, therefore the pool of buyers for their own domestic products gets bigger.
When China will put tariffs on EU cars, who will buy it ? European middle class is getting poorer every year and to poor gets poorer. What's the market ? Central and South America ? Africa ? This continent already buy Chinese
You must take into account that China still have a large pool of population which has not gotten out of poverty yet and that is developing its social status. To make it simple, the Chinese population gets richer, therefore the pool of buyers for their own domestic products gets bigger.
When China will put tariffs on EU cars, who will buy it ? European middle class is getting poorer every year and to poor gets poorer. What's the market ? Central and South America ? Africa ? This continent already buy Chinese
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1Mo
@Jo_Wolf Europe may be getting poorer, but it is still the most prosperous continent. In this respect, it is still a large, attractive market. China needs Europe to lift its population out of poverty. A few cars for Uganda will not solve the problem.
In the end, everyone has to work together. As soon as that no longer works, everyone will be worse off.
In the end, everyone has to work together. As soon as that no longer works, everyone will be worse off.
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