German newspaper Süddeutsche Zeitung argues that Europe must develop its own robust industrial policy in response to US actions and Chinese market strategies. The US has preemptively banned Chinese components and software in smart connected cars, and Europe should follow suit to avoid dependence on China and protect against product dumping.
Unlike US automakers who have largely abandoned the Chinese market, German manufacturers like Volkswagen, Mercedes, and BMW heavily rely on it. This dependency makes them vulnerable to potential retaliation from Beijing. Chinese firms are also investing billions in battery and car factories in Europe, making it costly for Europeans to suddenly exclude Chinese products.
The article warns that the US may pressure its allies to adopt similar restrictive measures, especially if Trump returns to power. Meanwhile, China is reportedly instructing its companies to avoid transferring technology to local firms when entering the European market, potentially creating a dependency similar to that in the solar energy sector.
The EU has begun developing strategies to reduce dependence and subsidize strategic industries like chips and batteries. It has also launched anti-dumping investigations. The article concludes by urging EU member states, particularly Germany, to actively support a unified EU strategy rather than pursuing individual, potentially conflicting policies.
Source: Deutsche Welle, September 28, 2024
https://p.dw.com/p/4lC1T