Export flood and dumping prices from China: How Europe can counteract it

Import tariffs, export bans, punitive measures imposed like raids: trade relations between China and the EU are constantly in turmoil. “The mood is different than it was a year ago,” he summarizes Markus Beyrer, who has just returned from China his impressions together: “China is distancing itself from Europe again, relies on contacts with individual member states.”

The Austrian is one of the most influential representatives of industry in Brussels and in this role regularly visits top representatives of the Chinese economy. The “red carpet” is currently not being rolled out for Europeans. The strategy, “together with the Europeans against the USA” you have it again in Beijing discarded.”

Many of the aggressive measures, especially in the export of raw materials, hit Europe’s industry hard, so it is of little use for the Chinese to emphasize that “this is not against Europe, but rather directed against the USA be.”

Weakness despite all strength

Beyrer describes the Chinese dominance in the markets as oppressive. More training, more research, more technology, more production volume: The country is making progress everywhere – and “despite all these strengths, it still has a fundamental problem“they depend on their export markets.”

Almost a third of China’s goods production is consumed by its own citizens, which is significantly lower than in Europe or the USA. For a long time, China’s leadership had hoped that this disparity would correct itself with increasing prosperity. A mistake, “the Chinese now see that themselves. They know that they have to do something about consumption in their own country.”

But countermeasures would only take effect in the long term, but for the time being there is “fierce internal competition” on the Chinese market. The companies would fight with all means possible, especially for market share, including ruthless price dumping.

This makes the European market comparatively lucrative – which would allow the Chinese to push here even more, with price dumping that is just as harsh as at home. An untenable situation for European industry: “Unless there are strong corrections from China, Europe will need countermeasures.”

What that could look like has been discussed in Brussels for months. EU states such as France are pushing for priority for industrial goods “Made in Europe”. Whether steel or medicine, the price alone should no longer count. Beyrer views such plans with caution: “There will be individual cases where we have to support European products. With broad-based protectionism against China ato appear. That can In the long run, more harm than good.”

One must remain open, including towards Chinese investments in Europe. But the EU must act as a united front, not compete against each other and compete for Chinese factories at all costs. Countries like Hungary or Spain have had bad experiences: machines from China. Workers from China and secrecy in all technologies? These are not the rules of the game that apply in Europe. Beyrer: “These companies have to create added value in Europe. This has to be made clear to the Chinese.”