The EU suffers from a real dilemma regarding its industrial future.
The US wants to harvest high end EU industries for itself, in the post-2016 era of competition w/ China. And have US companies be the only external high tech players in Europe.
The US wants to harvest high end EU industries for itself, in the post-2016 era of competition w/ China. And have US companies be the only external high tech players in Europe.
If the EU consents to all this, this is a surefire recipe for total de-industrialization.
So the EU needs be able to continue to export to other large markets. And the only one that is large and still has capacity to grow is China.
Yet, EU trade w/ China is highly politicized.
So the EU needs be able to continue to export to other large markets. And the only one that is large and still has capacity to grow is China.
Yet, EU trade w/ China is highly politicized.
Human rights disputes and the hidden geopol factor of the US constantly intervene, as do moralistic EU domestic politics.
How the EU manages these dilemmas in the coming decades will determine whether it stays in the developed world.
Or whether the US and China will be the only two non-tiny developed countries/states in 2050.
Or whether the US and China will be the only two non-tiny developed countries/states in 2050.
This is the (geo)political side of economic and industrial management.
The reason why this horrible dilemma exists is because of the US' initiation of a Cold War with China.
The reason why this horrible dilemma exists is because of the US' initiation of a Cold War with China.
This pessimistic thread was prompted by @DavidHenigUK and @leemakiyama's excellent report on the EU autos industry, whose constituent companies are frequently blamed by moralistic pro-US politicians for being lobbyists for China.
https://twitter.com/DavidHenigUK/status/1470741484576161792
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