EU Panic: As China Gets Ready Economic Punishments, Germany Runs To Beijing For Mercy

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China is on the verge of hitting Europe with economic punishments. This has the potential to escalate things further with various countries including Spain and France. Germany is very afraid of retaliation on their car exports and they are heading to Beijing to undo the damage done by the EU trade tariffs.

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✅ Timestamps & Chapters:
0:00 EU Horrible Mistake
4:00 China Readies Economic Retaliation
5:55 Germany Run To China
7:48 Sponsor: Indigo Precious Metals
9:13 Chinese Investments Will Flee EU
12:15 German Companies Still Choose China

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so the EU China trade war is about to get worse and it’s really funny if you think about it Europe has followed the us into yet another economic trap first was the decoupling from cheap Russian gas now it’s punishing Chinese EVS with import taxes and what does that do it removes affordable electric cars and drive prices up for people in Europe but this has always been the plan and Von made it crystal clear a year back from wind to steel from batteries to electric vehicles our ambition is crystal clear the future of our clean tech industry has to be made in Europe this is our task to ofen our companies are excluded from foreign markets or are victims of predatory practices they are often undercut by competitors benefiting from huge State subsidies we have not forgotten how China’s unfair Trade Practices affected our solar industry many young businesses were pushed out by heavily subsidized Chinese competitors pioneering companies had to file for bankruptcies promising talents when searching for Fortune abroad this is why fairness in the global economy is so important important because it affects lives and livelihoods however she still doesn’t recognize the problem what is the Genesis of the issue the entire ecosystem of Europe is essentially anti- manufacturing Energy prices are higher Supply chains are much longer in Europe labor costs are easily double debt of China sometimes even triple even if you ban EVS from Beijing it won’t make EU Industries competitive you just force EU consumers to pay much more four out of 10 EV Imports into Germany today are from Chinese Brands and that’s the most recent number consumers are voting with their money and they’re demanding cheaper cars slapping a 20 to 30% tariff isn’t going to change a thing people still have to pay more and EU industry still won’t grow all this does is to invite China to escalate back when byd sells their seal e to Europe they make a profit of around € 13,000 the new EU import tax for the company is going to be 28% in total up by 18% going forward the car will cost around €7,000 more in Germany to buy but that is meaningless to byd even if they lower the sticker price to Europe and absorb the entire tariff they still make a profit of around €6,000 that’s still three times more profit than selling back in China the tariffs are all about getting companies to resore away from China back to Europe but but that plan isn’t going to work when you manufacture in China you get to export quality products at a lower price and that helps you compete and sell globally in Asia and Latin America China’s manufacturing Trade Surplus is growing that is the chart on the left companies in Europe and the US manufacture in China for these growing markets it’s no surprise that China is investing in these places as well they are helping to grow demand there on the right side side the biggest Trade Surplus growth is coming from Asia and Mexico Europe is all the way at the bottom of the list they have the slowest growth the EU today might be an important destination for Chinese Goods but in the next 5 or 10 years it’s a whole different story this is just like the sanctions on Russian oil demand from Asia will easily replace Europe and the big loser will be the EU consumer they’ll be stuck with more expensive EVS now China of course isn’t going to take this line down they are now weighing a ton of economic punishments to hit Europe China is now drawing up their list for economic Counter Strike and many countries are going to get clobbered France and Spain will get hit the German economy will also be in deep trouble we must realize that China has to retaliate here if they take this lying down Europe will continue to push the boundaries they’ll keep pushing pushing and pushing and then that’s why a trade War benefits no one it destroys jobs and drives inflation higher plain and simple China’s first Target is going to be Pok from Europe the EU has an over capacity of Pok and Beijing is on the verge of imposing tariffs the country that were hurt the most here is Spain they exported a billion dollars worth to China last year since 2020 China has become more self-sufficient in their food supply they can outright ban Spanish Imports and get alternatives from Brazil or Chile this move will devastate farmers in the EU who already protesting on the streets during President she’s trip to France mcon gave him a gift two bottles of conc a Hennessy XO and a Louis 13 by Remy Martin there’s a reason for this song and dance China opened an anti- dumping probe into French Laker there’s a good chance now that Beijing could punish the import and this is a very weak spot macron is afraid of Beijing buys a lot of Brandy nearly $2 billion a year and guess what almost all of them come from France China raising import taxes or imposing a ban will hurt France the most the legal Lobby will be going after macron thousands of jobs will be lost in the process as well and this will creater his election campaign Brandy alcohol might make him lose the elections to Marine lean while those are painful it’s nothing compared to the horrors facing Germany and is why Harbeck the German economy minister is running is fleeing all the way to Beijing it’s important we look at the business delegation being sent no automakers are going this time which is very bad news it means they have given up and it’s up to Harbeck to convince Beijing not to punish their automakers Volkswagen Mercedes these are some of the companies that depend heavily on China over a third of their sales are from there there’s incredible push back from China’s car makers to the Chinese government they want the ministry to increase the tax rate from 10% to 25% for large engine cars the auto Lobby in China is like the favorite son today The Golden Child Beijing wants to build that EV base so they have to listen to companies like byd Jil and Cherry if tariff come for Germany it’s all over a 15% increase is enough to make their cars uncompetitive and here are the top challenges for German companies operating in China these are the firms already Manufacturing in the mainland the top two problems they face are price pressures and weak demand in China domestic competition is fierce which is pushing down prices across the board secondly demand in China is still recovering it’ll take anywhere from 6 to 18 months to get back on track China increasing the tax on German cars is the end game it will rank the companies and prevent them from making further progress in electric vehicles by imposing tariffs Beijing is forcing German automakers to make a very difficult choice you can either manufacture in Europe and lose the Chinese market or you can build a plant in China and enhance the ecosystem there even more is a virtual cycle that makes Chinese Industries even more attractive and a big shout out to our sponsor today Indigo precious metals when it comes to buying gold and silver I trust Indigo precious metals 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ounce or 1 kilo this is the reputable dealer you are looking for so take action today click on the link below and enjoy a discount on your first purchase with the code Shan Fu start your goal stacking Journey today Volkswagen Mercedes EST the lentis are already exiting the EV battery Market the EU can pump in billions in subsidies but the running course make it virtually impossible to compete China has a ton of capacity and they make the sales at a fraction of the cost if Volkswagen sells fewer cars to China their revenue will collapse where are they going to get the money for R&D to play catchup in E it’s impossible and this is where the story gets worse yes it can actually get worse the geopolitical situation between Europe the EU and China is devolving fast as if the trade War isn’t enough we now have NATO itself making a horrible statement Stenberg just gave China an economic threat that the West could sanction their economy China it’s is trying to get it both ways they China is propping up the Russian war economy they are sharing a lot of uh Technologies micro Electronics which are key for Russia to build missiles uh uh weapons they use against Ukraine but at the same time China tries to maintain normal economic relationships with uh European NATO allies so you think there should be sanctions perhaps at some stage we should consider some kind of economic cost if China doesn’t change their behavior because now China is the main uh supporter of Russia’s war effort War aggression against Ukraine the biggest war in Europe since the second world war and at the same time they’re trying to have normal relationship with European allies and this this cannot work in the long run now that this is out in the open China is aware of NATO’s intentions imposing economic CA on Beijing for trading with Russia just sit back a bit and imagine your president she over the past week you saw something historic and frightening the G7 confiscated Russia’s assets and yelling Justified the seizure to her it was not considered T the G7 using the money is legitimate because it’s just the income generated at least to the US but something tells me that China doesn’t view it that way this opens up a whole new can of worms Chinese money and Assets in the West can also be confiscated especially after stenberg’s thread he just revealed the worst case scenario what’s the point of investing in Europe if one day your factories can get seized those are immovable assets on EU soil if sanctions hit China production plans could get confiscated a recent survey from the China Chamber of Commerce shows investment appetite are already collapsing because of the tariffs 82% of Chinese car makers are are less confident about investing in Europe not only are manufacturing costs higher but now you have the threat of sanctions private companies could get caught in this Crossfire this is horrific for countries like Germany that desperately need to reindustrialize what we’ll see instead are more EU automakers living Europe for China you have politicians targeting Beijing but if we listen to The Business Leaders they are far more realistic for unfortunately there isn’t a U-turn today not with the current set of leaders in the EU the trade war with China is going to end horribly this is a very big mistake but let me know what you think will china hit back hard on Europe and will they target German cars next let me know in the comments below stay safe be sure to smash the like button and subscribe as we navigate through these crazy times