“We’re talking about losing significant parts of the automotive sector and its supply chains, pressure on machine tools, chemicals, the wind industry in Europe that could be wiped out in the next couple of years. I think there’s just more and more concern about the fact that in all of these sectors, China is moving into a dominant or even monopolistic position,” says Andrew Small, director of the Asia programme at the European Council of Foreign Relations (ECFR) in Berlin.
Some in Brussels thought Trump’s return to the White House could help to facilitate a reset in the EU-China relationship. But while Europe’s reliance on the US for security meant that the EU had to roll over when Trump threatened tariffs, China refused to bend, and its tough strategy has so far been successful.
“I think what became clear from the Chinese end was that the view would rather be that Europe is in a weaker position as a result of the situation in the transatlantic ties, and Europe needs to be the one to give things up. That’s what we’ve seen pretty much since then,” says Small.
China’s dominant position in some manufacturing sectors offers leverage of its own, as the Dutch government discovered last September when it seized control of Nexperia, a Chinese-owned chip manufacturer. Beijing retaliated by blocking exports of Nexperia chips
There are various reasons China made it before not instead of others. Industrialization is taking up speed on Africa for example even if we like to ignore it.
However China isn’t flawless and one aspect of the price it paiys is a selfmade demographic problem: The incedrible chatch up speed wouldn’t have been possible if it wasn’t for the one-child-poöicy which, coupled with immensly hard work by the Chinese population and heavy environmental destruction, allowed for China to become an economic giant within decades. This policy however will backfire in the near future. It’s not all black and white but mostly grey… as always.