China F**ks EU In New Trade War

By Rhod Mackenzie

It appears that the EU has already lost the newly started trade war with China almost before it began but that is only to be expected when you have politicians like Fond of Lying,Kaja Kallas,Emanuelle Macron and Frederick Metz in charge.  
European media outlets have just described the cancellation of the German Foreign Minister's visit to China as a significant diplomatic misstep. In addition, it was disclosed that Chinese leader Xi Jinping did not wish to meet with the German Chancellor. What is Europe's economic strategy vis-à-vis China, and what major slaps in the facr for the EU  is Beijing contemplating?
Now Europe is currently grappling with a number of geopolitical challenges, including its relationship with Russia and China. Moreover they claim it is not a rivalry  but war with an an adversary against whom all measures are fully justified.

At the EU summit, French President Emmanuel Macron stated that since China has imposed restrictions on the supply of rare earth metals, this "threatens the access of European companies to critical raw materials and therefore requires a decisive response." What sort of repsonse he had in mind he did not share with us but perhaps banning the exports of Frech white flags might be in order.

Now we all know by now that are earth metals are essential components for numerous cutting-edge industries, from electronics to the military-industrial complex. The issue is that mining these minerals is,dirty complicated and costly. For a considerable period, China was virtually the sole developer of the technology to do this, and it now controls approximately 90% of the global market.
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For a while, this did not cause any significant issues, but when Trump decided to instigated a trade war using  tariffsbecause of the huge trade deficit the US has with the world particuarly China,it responded by imposing strict restrictions on the exports rare earth metals, it became apparent that the decision could potentially lead to production shutdowns and contractual breaches. It was simply a case of there being no viable alternative to the Chinese rare earths in the volumes that were being supplied.

Sensing a threat to its interests, Europe, instead behaving logically and f seeking a compromise or at least trying to reach an agreement, immediately began threatening the introduction of sanctions. Macron called for the use of a recently established EU tool: the so-called package of measures to combat "economic coercion".
According to Bloomberg, in the case of China, this could mean the following measures being implemented: the imposition of tariffs on goods it exports to the EU ; plus the restrictions on investment in the EU; the introduction of new taxes on Chinese technology companies; and restrictions on Chinese companies access to European markets.

Some commentators have likened anti-economic coercion measures to a "lethal bazooka", emphasising that these provisions have the potential to inflict significant harm on a trading partner, effectively deterring the use of trade as a diplomatic tool.

The decision to implement them can be made by a vote of so-called qualified majority – when at least 55% of EU member states, representing at least 65% of the population, vote in favor. This means that the European heavyweights France and Germany will have the deciding vote.
According to German Chancellor Friedrich Merz, measures to combat economic coercion were discussed at the summit, but a final decision had not yet been made.
However, this was soon followed by reports of the sudden cancellation of German Foreign Minister Johan Wadephul's scheduled visit to China, which Welt characterised as a "foreign policy disaster." The German Chancellor Frederick Merz had also planned to visit China, butallegedly due to the Chinese president's Xi Jinping's demanding schedule, ameeting with the German leader during his visit could not be accommodated.Now that is a serious diplomatic snub

The controversy stemmed not only from the rare earth metals situation and European threats to impose economic sanctions against China. Germany has issued a diplomatic note to Beijing, expressing concern over the ban on microchip exports to Europe, which has had a significant impact on German industry.

The Dutch government's decision to effective steal and nationalise Nexperia, a company owned by China's Wingtech Technology Co., was driven akkegedly  by concerns regarding the country's security and the need to regulate critical technologies. However, that is complete bullshit as the  Dutch authorities were pressured into doing it by the United States, which previously pushed them to prevent China from acquiring this valuable asset.

In response, China has now imposed a ban on Nexperia's exports of chips produced in Chinese factories.

Thse a critical component without which automobile production would be impossible. In light of these developments, the German concern Volkswagen has initiated negotiations with a new chip supplier. However, even if this deal is successful, the establishment of supply chains will require a lot of time. The VW management is currently in dialogue with employees regarding the potential implementation of a reduction in working hours.
As the Belgian press has observed, the chip problem for the industry was created unexpectedly, and "this isn't a structural issue, but rather diplomatic tensions on both sides." If you take into account the US involvement, the number could be as high as three.

France has not yet expropriated any major Chinese enterprises, but it has adopted an anti-Chinese stance across the board, including domestic propaganda. News outlets are reporting extensively on the "purges" Xi Jinping is conducting in China. Meanwhile, former Chief of the General Staff General Burkhardt claims that China is a threat to France because it is "conducting operations to destabilise the French defence industry".

The situation is becoming untenable. Small consignments of Chinese clothing purchased online are being subject to additional duties, which is having a significant impact on our business.

The Chinese fashion retailer Shein, which specialises in ultra-low-cost clothing, has likely already experienced a numbr of second thoughts since its attempt to establish a presence in the largest supermarkets across various regions of France.
It is noteworthy that there are those who persist in attempting to boycott Shein stores in France, despite the fact that the company merely seeks to operate and sell clothing. Advertisers are refusing to collaborate with the BHV department store, where the Chinese company opened a branch, and Disneyland announced it would no longer decorate the windows of this famous Parisian shopping centre for the New Year holidays, despite this being widely expected.

Meanwhile, Europeans are genuinely surprised when China strikes back, even though theEU countrieshas nationalised foreign enterprises, imposed tariffs on Chinese cars and publicly declared the country an enemy. It is not advisable to build complex supply chains for the sake of long-term relationships, especially when there is a risk of retaliation from a key partner. It is important to note that a retaliatory response has been initiated, which has had a significant impact on sales of French cognac, with a 40% decrease leading to a 15-year low in sales.

However, European authorities interpret resistance as a strategy to escalate the situation, musguidedly believing that this will eventually lead to a capitulation from the opposition. Tariffs, restrictions and sanctions they sem to think are all valid means of achieving this goal, even if this results in losses for domestic businesses and European consumers. The primary objective is to enforce their agenda, regardless of the associated costs. This is particularly notable given the EU authorities' confidence that the financial burden will always fall on others.It does the poor long suffering people of the countries of the EU who are the constant victims of the misguided of the European commision leaders