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It makes no sense for the bloc to impose restrictions on high-tech exports and then complain about the trade deficit, says Beijing.
I mean that does make sense. The trade deficit is on our side. We are importing more than we are exporting. Cutting the exports will just further exacerbate that deficit. With that being said, it does make sense not to export some high tech products to China out of security fears. But they do have a point. China is self sufficient enough that they don’t need to import much from us.
What security fears? The West has completely obliterated medium-term leverage in high tech exports. We’ve single-handedly done something that multiple levels of Chinese government have failed to: force Chinese companies to use domestic vendors despite inferior performance and higher cost. We’ve single-handedly pushed Made in China 2025 into a success story, driven millions of dollars into research investment, and contributed billions in dollars in sales into Chinese companies that people wouldn’t even consider as vendors before.
Huawei was desperately trying to sell their Ascend AI accelerators before and to no avail. Today? They’re swamped with orders. SMIC was barely usable except for research purposes and bottom-of-the-barrel development (and even research would prefer to use TSMC). Today? They’re shipping millions of units at 7nm.
Globalization theory works to protect established powers so long as established powers continue to innovate, since newcomers have little incentive to invest in fields that established powers are both 1. Much more advanced in and 2. Constantly advancing in at a pace that’s difficult to catch up to.
Do you have sources for further reading, especially relating to your middle paragraph?
Well, I wasn’t saying that I supported our decisions. I was just saying that the knee jerk reaction of applying sanctions made sense for the politicians obsessed with national security. I’m personally happy that the Chinese are advancing their R&D efforts. I personally think everyone should do that.
Fuck China.
yeah those pesky chinese should trade unfavourably like the good 3rd world countries starving their population to sell us grain
Be careful cos they will come for you. 😈😈
This is the best summary I could come up with:
The EU bears responsibility for the trade imbalance as it’s stopped businesses from exporting to China, Foreign Ministry spokesperson Wang Wenbin said on Wednesday, responding to von der Leyen’s call on China to open up access to its market.
Wang’s comment appeared to refer to restrictions on exports of the most advanced lithography tools, made by Dutch market leader ASML, that are used to print the most powerful computer chips.
He added that part of the profits generated from Chinese trade surpluses are earned by European companies with operations there.
"Trade figures are incapable of reflecting the share of interest between China and the EU in light of the integrated global industrial and supply chains.”
Von der Leyen on Tuesday said that European leaders “will not tolerate an imbalance in trade over the long term.”
In the months leading up to the summit, scheduled for Thursday, EU officials have been highlighting its trade deficit with China which had doubled in two years to a record €390 billion in 2022.
The original article contains 277 words, the summary contains 169 words. Saved 39%. I’m a bot and I’m open source!