Not long ago, the Executive Vice Chairman and Trade Commissioner of the European Commission, Dong Brovsky, publicly criticized China, saying that it was because "the opening of the Chinese market does not match the EU" that led to such a large trade deficit. Such a one-sided approach has become a common tactic of the EU.
In recent days, after several setbacks, Borrelli has finally completed his first visit to China. Before leaving, Borrelli issued a warning in Beijing that if the trade deficit between China and Europe continues to widen, public sentiment in Europe will become more protectionist, and voters may demand that the EU leave China. So in order not to seek decoupling from China, we hope that China can show some sincerity and improve the opportunities for European companies to export to or invest in China.
Is the EU's strategy about to change? No! They are now singing a white face and a black face. On the surface, it seems that the European people are feeling high. In fact, we all know that this is just a rhetoric, but in essence, it is just some "anti China" politicians within the EU. They have been trying to "decouple" from China for various reasons. But as the two most powerful economies in the world besides the United States, cooperation between China and Europe is crucial.
For example, the electronic products exported from China to Europe are actually only assembled with certain accessories, and many times we also import them. However, when the final statistics are based on the entire product value, it appears that the export volume is high, while the actual parts related to China are very low. However, almost all products exported from the European Union to China are made in Europe, so their profits are actually very high, But they are still not satisfied with this.
Although with the upgrading of Chinese industries, there are more and more industries that we directly compete with the European Union, these industries are also important markets in Europe itself. Therefore, they should consider alleviating Europe's anxiety through overseas factory construction, mergers and acquisitions, and technology transfer, rather than often talking about "removing risks from China"!
But perhaps this is also the reason why we have been following behind the United States all along! After all, the United States' policy towards China is to encircle and intercept, so they must also follow the pace of the United States. The so-called "risk reduction towards China" is essentially a serious form of protectionism. And this time Borrelli's warning to China is nothing more than a moan after being cornered! Because the deficit of the European Union is gradually increasing, the trade deficit between China and Europe has reached 396 billion euros since last year, which can be said to have reached its peak in recent years. The current EU is no longer the same as it was 100 years ago, and it is no longer feasible to seek benefits through "white prostitution"!
Moreover, we have not prevented European products from exporting to our country all along. They have cooperated with the United States to lock themselves up. China's vast market has not organized any products from any country, even if the United States has fought a trade war against us. We have not prevented American products, but the European Union and the United States are different. After all, the US deficit is to allow the US dollar to flow more to the world, but the euro is different and has been issued more, In the end, it was also the result of no one paying attention, which led to severe inflation within Europe, but this was also caused by the EU itself.
Two years ago, the European Parliament passed the agreement with a high vote, freezing the China EU trade agreement. Since then, the level of European trade has begun to decline significantly. However, in 2022, the outbreak of the Russia-Ukraine conflict once again caused the EU to suffer major economic losses. Even so, the EU did not turn back, but instead took "trade protection" as a reason to conduct countervailing investigations on China's electric vehicles, photovoltaic industries, etc, All of this is clearly the EU's intention to launch a trade war against China.
However, they both want to "decouple" from China and want China to support their industries, which is really contradictory! If the EU continues to follow in the footsteps of the United States, then it is feared that the trade deficit between China and Europe will become increasingly large. By then, there may be internal fragmentation without waiting for them to break away!