(Deutsche Welle Chinese website) Despite continued protests from European and American countries, China's export machine is still turning faster and faster. In September this year, China's exports surged another 36% year-on-year. "Business Daily" commented that China's export surplus will exceed the one trillion US dollar mark this year earlier than in previous years, and all this is expected, because there are institutional reasons behind China's export boom. This review titled "Adventure Games" reads:
"The reason why China's exports continue to hit records is China's domestic demand: domestic demand continues to be weak, and companies with overproduction lose their final profits in competition with each other. As a result, overseas markets have become their only way out. It is undeniable that the Chinese economy is indeed highly innovative and has taken the world's leading position in many fields. Europeans have felt the competitive pressure from China and have begun to work hard, which is a good thing.
But it is also undeniable that a weak exchange rate, overall price levels, and still low wages and energy costs are very beneficial to China's export industry. It is not only the RMB exchange rate that is artificially undervalued. In a sense, the entire Chinese economy is seriously undervalued.
As long as China's top-down subsidy policy and economic order that suppresses consumption do not change, the high export surplus will not change. Any trade negotiation can only treat the symptoms but not the root cause of the problem. The EU is right to impose import restrictions on Chinese hybrid vehicles. But in the future, the EU needs to set up a broad toolbox to protect trade and set clear conditions for Chinese investment. "
"Business Daily" commented that in the foreseeable future, China's export frenzy will be difficult to change, because export policies are closely related to China's system:
"For many years, the Chinese government has been calling for boosting domestic demand, but so far it has had little success. One reason is that local provinces and cities are subject to many fiscal restrictions. In relevant international discussions, it seems that Chinese localities have great autonomy in the economic field, but the actual situation is far from that. In view of this, the export boom can only continue.
And this is China's strategic weakness. Chinese party and state leader Xi Jinping originally hoped that China could reduce its dependence on the West. But China's actual development is exactly the opposite: China's export boom is inseparable from overseas markets, while countries around the world are building trade barriers one after another. Once global, artificial intelligence begins to cool down. Related Chinese exports will definitely be affected. What to do then? "
“Trade barriers alone cannot save European car companies.”
The German auto industry has long been the main force opposed to the government's tough China policy because they are worried about losing the Chinese market. However, the wind direction has obviously changed now. Cologne Stadtzeitung commented:
"With Chinese car brands entering the European market, the direction of Volkswagen and other car companies has obviously changed. They suddenly publicly called on the EU to take measures such as tariffs and import restrictions. They are obviously no longer worried about China's retaliatory measures, because for other reasons, the sales of German vehicles in China have begun to plummet.
In just a few years, China has surprised German auto executives four times in a row: the rapid technological leap in China has caught them by surprise, the emergence of a large number of car companies has caught them by surprise, the impact of the real estate crisis has caught them by surprise, and China's export strategy has caught them by surprise. Since German auto executives have regarded China as a 'second home market', it is really surprising that so many misjudgments have occurred in a row.
Volkswagen, Stellantis and Renault are now working hard to produce affordable electric cars in Europe. Chinese automakers have received strong government support, so it is reasonable for European companies to demand equal opportunities.
But the problem is that large Chinese car companies will soon start production in Europe, and will even take practical actions to show that they are better than European cars. Compared with European car companies, they do not have so much historical baggage, they are more flexible, and their technical level is by no means lagging behind. In the field of automotive batteries, China occupies an absolute leading position. Except for Volkswagen, there is no trace of other European car companies in this field.
Even if Chinese car companies and European car companies gain the same competitive environment, will European companies definitely win? As it stands now, this is not optimistic: on an 'equal playing field', there will also be losers. "
