Table of Contents
- 1 INCENTIVES IN EXCHANGE FOR KNOW-HOW
- 2 CHINA HAS SET A SCHOOL
- 3 AMERICAN SOVEREIGNTY LEAVES US EXPOSED
- 4 THE EU REDUCED TO A CONSUMER UNION?
- 5 **How can international organizations like the World Trade Organization effectively mediate these types of disputes and ensure a level playing field for all stakeholders in the global electric vehicle market?**
For decades China has forced foreign companies to enter into joint ventures with local counterparts so that they would be active parties in the industrial creation process: now Europe is about to ask for something very similar to the aggressive realities of Beijing and its surroundings ready to invade the Old Continent with electric cars and batteries
Il Financial Times recently wrote that Brussels intends to propose a do ut des to Chinese companies that intend to attack the European car market: they will have access to community subsidies only if in exchange they undertake to transfer patents and intellectual property to our companies. In short, Europe seems to want to play Chinese with China.
INCENTIVES IN EXCHANGE FOR KNOW-HOW
Yes, because well before theInflation Reduction Act Of Joe Biden narrow the scope of state subsidies up to 7,500 dollars in tax credits only to foreign companies that produce electric cars having established their value chain on US soil (aid that Trump now seems to want to cancel from his first day in the White House) , in previous decades Beijing had imposed very stringent rules on foreign brands – mostly German – attracted by the negligible cost of labor.
CHINA HAS SET A SCHOOL
In fact, China opened its gates only to foreign companies that would transfer their industrial know-how to locals. Until a few years ago, there was a law that forced American, European and Japanese entrepreneurs to enter into joint ventures with native counterparts precisely in order to make them an active part in production.
AMERICAN SOVEREIGNTY LEAVES US EXPOSED
America’s Joe Biden had already armored itself commercially, disadvantaging not only Chinese industries but also European ones and with the arrival of Donald Trump in the White House the general impression is that the situation for entrepreneurs from the Old Continent can only get worse (also based on what the tycoon declared during the election campaign). This is why Europe, commercially, risks being reduced to one Consumers Unioncaught between the USA and China but unable to export its products.
THE EU REDUCED TO A CONSUMER UNION?
It is therefore at the top of the agenda of the new Commission to implement trade policies that protect its industrial weight at least within the European market itself which, as is known, as far as the automotive sector is concerned, will soon be undermined by Chinese companies.
For this reason the Ft maintains that to benefit from the one billion euro tender for the development and production of batteries in the Old Continent scheduled for the end of the year, non-EU companies will first have to plan to establish their hubs in one of the 27 member countries and willingly accept possibility of transferring one’s experience in the field to local workers.
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**How can international organizations like the World Trade Organization effectively mediate these types of disputes and ensure a level playing field for all stakeholders in the global electric vehicle market?**
## Interview: Europe Plays Hardball with China in the Electric Vehicle Race
**Welcome to World Today News. Today, we delve into the geopolitical intricacies of the electric vehicle market and Europe’s response to China’s rise in global dominance.**
**Joining us are two esteemed guests:**
* **Dr. Sophia Lin**, Professor of International Economics at the University of Oxford, specializing in Sino-European economic relations.
* **Mr. Mark Hansen**, Senior Policy Analyst at the European Policy Centre, focusing on
industrial policy and green technology development.
**(Theme: Setting the Stage – China’s Past and Present Strategies)**
**Interviewer:** Dr. Lin, the article highlights China’s historical approach of requiring foreign companies to enter joint ventures, essentially mandating technology transfer. How did this strategy shape China’s rise as a manufacturing powerhouse?
**Dr. Lin:**
**(Discussion points for Dr. Lin to elaborate on: the effectiveness of this strategy for Technology transfer to China; International perception of this approach; The impact on foreign companies operating in China.)**
**Interviewer:** Mr. Hansen, how have European companies traditionally responded to this pressure from China?
**Mr. Hansen:**
**(Discussion points for Mr. Hansen to delve into: Examples of European companies in China, their experiences, and responses to transfer requirements. The overall impact on European competitiveness.)**
**(Theme: Europe’s New Gambit – Responding to Chinese Expansion)**
**Interviewer:** Dr. Lin, the article suggests Europe is seeking to mirror China’s strategy by demanding intellectual property transfer from Chinese companies in exchange for subsidies. Do you consider this a legitimate approach, or is it a dangerous precedent that could escalate tensions?
**Dr. Lin:**
**(Discussion points for Dr. Lin to explore: Ethical considerations of this tit-for-tat approach. Potential repercussions for global trade and technological innovation. Alternatives to this approach that might foster collaboration rather than competition.)**
**Interviewer:** Mr. Hansen, what are the potential benefits and risks for European industries in adopting this strategy?
**Mr. Hansen:**
**(Discussion points for Mr. Hansen to discuss: Potential for securing European technological leadership in critical sectors like electric vehicle battery production. Risks of stifling innovation and limiting access to critical technologies.)**
**(Theme: The Future Landscape – A Multipolar World?)**
**Interviewer:** Both guests, what does this escalating competition signify for the future of the global economy and the electric vehicle industry? Are we entering a new era of multipolar competition, or is there still room for collaborative partnerships?
**(Discussion points for open dialog: The role of international organizations and agreements in regulating this competition. The importance of diversification and regional cooperation. The need for a balance between protecting national interests and promoting global collaboration.)**
**Interviewer:** Thank you both for such insightful perspectives on this critical issue.
