cross-posted from: https://scribe.disroot.org/post/5511282
Europe should consider measures against China if trade ties with the Asian nation continue to deteriorate, according to Bundesbank President Joachim Nagel.
Nagel said Friday that the region needs to let China know that its actions are being scrutinized and that Europe’s core industries must be protected.
“Europe has to think about how do we retaliate, maybe, when things are escalating further,” he said Friday in Frankfurt. “But my impression here is that first of all it’s important that we talk to each other. I think we should understand better what’s going on.”
The European Union is concerned about China’s restrictive trade measures and is seeking to defend its industries from a glut of subsidized Chinese competition. Beijing has also been restricting shipments of rare-earth magnets used in everything from electric vehicle batteries to defense manufacturing — requiring companies to obtain import permits.
Nagel will travel to China this month along with German Finance Minister Lars Klingbeil. He hopes the trip will provide an opportunity to improve relations.
“To discuss things in a cooperative sense, I guess, is the best that we can do to overcome one or the other stress situation we had in the past,” he said.
Trying to protect their car industry instead of innovating it’s the entire political playbook here
