The way of China

Let us imagine a key sector that employs a large part of the highly skilled population. Now, suppose that alongside this sector is a huge ancillary components industry.
This sector is not only a leader in innovation, but also drives major scientific breakthroughs. It is dominated by American, European and Japanese companies, and Spain has managed to position itself as the world’s fifth largest player in this field.
Chinese President Xi Jinping with France’s Emmanuel Macron
Europe in the face of China

Now, suddenly, this sector is undergoing a technological revolution that changes everything. Overnight, a new competitor enters the scene and aims to take the lion’s share of the market.

This is the situation in the automotive industry today. To frame the sector with some figures, almost one million new cars were sold in Spain alone in 2023.
The best-selling brands were, in descending order, Toyota, Kia, Volkswagen, Hyundai and Seat, representing Japanese, Korean and European companies.
Globally, 93 million new cars are sold each year, most of them with combustion engines, mostly from these countries and the United States.
From 2035, new cars in the European Union will have to be electric. So far so good, especially if this measure succeeds in limiting carbon dioxide emissions.
The problem arises if we continue with the current market trend, as most of these vehicles could be produced in China, i.e. not in Japan, Europe or the US.
The main exporter will be Tesla, its vehicles produced in Shanghai, the world’s largest plant, with an annual production of more than one million vehicles.
It will be followed by SAIC (formerly known as Shanghai Automotive Industry Corporation, SAIC Motor is a state-owned company and one of China’s big six automakers that owns British-owned MG).

Next would be BYD (which interestingly stands for Build your Dreams), and, in fourth place, Geely, which owns Volvo, meaning «happiness».
These are relatively new brands and so far unknown to the average citizen.
Chinese cars are as technologically advanced as cars from any other country, they are attractive, efficient and a third cheaper. This is the reason for their success in international markets.

For two decades, China has been pursuing a low-price export strategy, taking advantage of its relatively low wages, technology copying and lax labour and environmental legislation, among others.
In 2022, the EU exported 230 billion euros worth of goods to China, while imports from China were almost three times as much: 626 billion euros.
We have a huge and very worrying trade deficit with China. While it is true that our exports are on the rise, imports from the Asian giant are soaring at a dizzying pace, increasing our dependence.
The President of the People’s Republic of China, Xi Jinping, is currently in Europe, visiting France, Serbia and Hungary, as well as meeting with the President of the European Commission, Ursula von der Leyen.
The European Commission is investigating the subsidies that the Chinese government is allegedly giving to several strategic Chinese industries, including electric cars.
If the suspicions are confirmed, it would mean that China is competing unfairly, which is against the mandate of the World Trade Organisation.
READ MORE…

EU stands up to China and reaffirms opposition to cheap imports that destroy European industry
Macron calls on Xi Jinping in Paris to end trade tensions between Europe and China
There may still be time to slow down, or at least mitigate, the impact that the Chinese electric car will have on our automotive industry. If the real prices of Chinese cars are similar to ours, we will be able to cope with the onslaught.
On the other hand, without resorting to outdated protectionism, but for the sake of economic and environmental sustainability, we could encourage citizens to reconsider their purchasing decisions.
Would it not make sense to prefer cars made in Europe rather than in China?
We have already partially lost a lot of our manufacturing: textiles, toys, chemicals, machinery, shipbuilding…. Much of it has moved to China. Are we going to allow the car industry to go too?

Next would be BYD (which curiously stands for Build your Dreams), and, in fourth place, Geely, which owns Volvo, and which means «happiness».
These are relatively new brands and so far unknown to the average citizen.
Chinese cars are as technologically advanced as cars from any other country, they are attractive, efficient and a third cheaper. This is the reason for their success in international markets.
For two decades, China has been pursuing a low-price export strategy, taking advantage of its relatively low wages, technology copying and lax labour and environmental legislation, among others.
In 2022, the EU exported 230 billion euros worth of goods to China, while imports from China were almost three times as much: 626 billion euros.
We have a huge and very worrying trade deficit with China. While it is true that our exports are on the rise, imports from the Asian giant are soaring at a dizzying pace, increasing our dependence.
The President of the People’s Republic of China, Xi Jinping, is currently in Europe, visiting France, Serbia and Hungary, as well as meeting with the President of the European Commission, Ursula von der Leyen.
The European Commission is investigating the subsidies that the Chinese government is allegedly giving to several strategic Chinese industries, including electric cars.
If the suspicions are confirmed, it would mean that China is competing unfairly, which is against the mandate of the World Trade Organisation.
READ MORE…

EU stands up to China and reaffirms opposition to cheap imports that destroy European industry
Macron calls on Xi Jinping in Paris to end trade tensions between Europe and China
There may still be time to slow down, or at least mitigate, the impact that the Chinese electric car will have on our automotive industry. If the real prices of Chinese cars are similar to ours, we will be able to cope with the onslaught.
On the other hand, without resorting to outdated protectionism, but for the sake of economic and environmental sustainability, we could encourage citizens to reconsider their purchasing decisions.
Would it not make sense to prefer cars made in Europe rather than in China?
We have already partially lost a lot of our manufacturing: textiles, toys, chemicals, machinery, shipbuilding…. Much of it has moved to China. Are we going to allow the car industry to go too?
A few days ago, someone asked: if we know that China is dominating world exports in an unfair way, why don’t we do something about it?
The answer boils down to two questions: who can stop them? How do we do it? It is not easy. A strong and powerful European Commission, capable of enforcing itself, would help.
What really counts is the decision of the citizens, who are the consumers and the power holders. We must encourage local consumption. Not only in fruit and vegetables, but also in cars. It is time to become aware and act accordingly to protect our economy and our future.

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