The European Union is considering trade restrictions on Chinese chemicals and industrial machinery to protect European manufacturers from cheaper imports. According to POLITICO, Brussels may introduce safeguards similar to its recent agreement limiting Chinese hybrid car imports. The initiative reflects growing concerns about Chinese industrial overcapacity, Europe’s competitiveness and its widening trade deficit. No restrictions have yet been announced.
Personal Remarks
The European Commission, which created the problem in the first place, is now tasked with fixing it. A perfect example of nonsensical policymaking.
And then they’ll sell the solution to us as a political victory.
The irony? Xi Jinping has arguably done more for China’s middle class than the European Union has done for its own.
Let that sink in.