Despite decades of rapid Chinese growth, it’s over the past year that European politicians have begun to talk of facing what’s been dubbed the ‘China Shock 2.0’ — as surging Chinese exports and the impact of higher technology Chinese growth increasingly affect the heartlands of European industry — particularly German car and machinery manufacturing. Germany’s industrial output has fallen around 10% since 2022, and the country is estimated to be shedding some 10,000 industrial jobs every month; Volkswagen has just outlined up to 100,000 possible job cuts. Much of the blame has been placed on Chinese overcapacity, and what Europe sees as unfair subsidies and an overvalued Chinese yuan. And amid fears that job losses could further boost the rise of the far right in European politics, there have been calls for new import restrictions and higher tariffs on Chinese imports to Europe. The European Union and China have just begun three months of trade talks in an attempt to find a solution — but will Europe dare to take tough action in the face of China’s stranglehold on sectors like rare earths and legacy chips — and is China prepared to compromise? Joerg Wuttke of the consultancy DGA Albright Stonebridge Group, for many years president of the European Union Chamber of Commerce in China, and former Vice President for China at the German chemicals giant BASF, discusses the roots of the crisis and the chances of finding a solution.
For information about the SOAS China Institute Corporate Membership scheme, please contact SCI director Steve Tsang: steve.tsang@soas.ac.uk
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The views and opinions expressed on this podcast are those of the speakers and are not necessarily those of the SOAS China Institute. ________________________________________
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