Europe Didn't See This Coming | "We Made A Huge Mistake"

Europe Didn't See This Coming | "We Made A Huge Mistake"

Europe is currently in a bit of a sticky situation with China. On one hand, they're trying to pull away a bit, but on the other hand, they're realizing just how important China is for their economy. Picture this: the relationship between Europe and China is like watching a train wreck happen in slow motion. Trade tensions are getting worse because China's really good at making stuff cheap, which is hurting European industries.

Europe's stuck in the middle, trying to protect their own industries while also realizing they need China to keep things running smoothly in the global economy. The European Union Chamber of Commerce in China is saying they need to have a serious chat with China to sort out these trade problems and make sure things are fair for everyone.

As the economic seesaw tips back and forth, security worries are making things even more complicated between Europe and China. Europe's trying to play it safe by being careful about what they import from China, so they don't get caught up in any price wars or get flooded with too much stuff. This whole situation shows how important it is for Europe and China to sit down and talk things out.

They need to figure out how to deal with all the ups and downs of trade, keep things safe, and make sure their economies stay strong. Europe's feeling the pressure to stand on its own two feet economically, but they also know they can't ignore the fact that they're pretty tied up with China's economic power.

If You Like This Video; Like, Share, Comment And Subscribe. This Means A Lot To Us!

Thanks For Watching Our Video; Europe Didn't See This Coming | "We Made A Huge Mistake"

Europe was already changing how it dealt with Beijing even before von der Leyen talked about de-risking, but now it's facing even more challenges—especially when it comes to China's big role in the shift to clean energy. Even though European imports from China are dropping, there's still a lot more for Brussels to do.

The amount of stuff Europe imports from China, like machinery and transportation equipment, has gone down by quite a bit since late 2022. But this is just the start of fixing the import surge caused by the pandemic. If things had kept going the way they were before the pandemic, Europe would actually be importing around four billion dollars less worth of stuff from China every month.

So, can Europe do more to rely less on China? Especially since Europe is really pushing to use more clean energy? Well, the tricky part is that China pretty much dominates the supply chains for clean energy stuff. Like, almost 30% of the wind turbines and parts Europe uses and about 68% of its heat pumps come from China.

The real challenge, though, is with cars. China has always been a big market for cars made in Europe, especially in places like Germany. But now, China is starting to import a ton of cars from China too. While Europe still sells more cars to China than it buys, the number of cars coming from China has shot up like crazy.

Since 2019, European imports from China have jumped over 3,000%, with Chinese electric cars making up a big chunk of that increase. So when Europe tries to play it safe with de-risking, it ends up causing some big problems for its economy. Supply chains get messed up, trade slows down, and businesses have to deal with higher costs.

This instability makes investors nervous, which affects both European and Chinese markets. By pulling away from China, Europe could miss out on chances to grow its economy, get new technology, and form important partnerships. When it comes to Germany, there are two big reasons why German businesses are so connected with China. First, the numbers speak for themselves: nearly 5,000 German companies are doing business in China.

And second, even though Brussels is trying to play it safe with China, some German companies are still making new deals with Chinese partners. Take Volkswagen, for example. They bought almost 5% of Xpeng, a Chinese car startup, and paid a whopping $700 million for it in 2023. Despite relying a lot on China, Germany keeps talking about playing it safe with them.

But there's a bit of a mixed message there. Some German companies are teaming up with Chinese ones in areas where they can't compete alone. And big companies like BASF are moving their production to China because it's getting too expensive elsewhere. Even though the EU and Germany talk about being careful with investments in China, German investments there keep growing.
More Details In The Video

Видео Europe Didn't See This Coming | "We Made A Huge Mistake" канала Tech Revolution