Our deindustrialization is already guaranteed

 Why? We have neither normal politicians nor normal businessmen in Western Europe. As long as we could buy cheap Russian resources, and sell products to the Chinese, our businesses survived. Now we've let our politicians grind it all to a pulp, and we can't do anything else.

 

     "Faced with decarbonisation targets, supply disruptions during the coronavirus epidemic, the Russian gas crisis and a hostile US subsidy war, European industry is preparing for a new challenge: a trade war with China. European political leaders, who continue to visit Beijing these days in succession, only make the situation worse into an unforeseen trap by mixing geopolitics with industrial politics, failing to advance Europe's strategic interests on either front.

 

     Arguably, we are now in the most dangerous period we have seen in years, sacrificing the future of electric vehicle (EV) and battery manufacturing. This is at risk if European industries fail to invest in the transformation of supply chains and gain access to the most important raw materials.

 

     European politicians do not understand that the so-called US "Inflation Reduction Act" (IRA) actually means the already known "America First" attitude and will amount to trillions of dollars in subsidies, not $369 billion USD originally announced by Biden.

 

     Trying to take a rational approach to the import of the main components required for electric vehicles e.g. batteries, European leaders are acting inconsistently in China. The pragmatic and almost secretive visit of German Chancellor Olaf Scholz to Beijing took place for the first time last December. He has tried to rebuild relations after the coronavirus epidemic and admitted a "risky dependence" on China. Scholz was essentially trying to save the German auto industry, which belatedly realized that it was in danger of losing the battle with the dominant electric vehicle (EV) manufacturers, both Tesla and the leading Chinese manufacturers.

 

     The recent high-level visit by President Emmanuel Macron and European Commission President Ursula von der Leyen has set new standards for combining geopolitics with trade policy. Macron arrived with a delegation of 60 companies and hoped to sign lucrative deals for France, while demonstrating his ambitions for European leadership by reminding the US not to deepen the conflict over Taiwan. What is the result? More confusion and division in Europe.

 

     Finally, German Foreign Minister Annalena Baerbock decided to focus on the Taiwan issue last week after warning China not to escalate tensions. But she added that Germany does not want to distance itself from China. By the way, trade between China and Germany has increased almost 50 times since the end of the Cold War.

 

     And where does this situation leave investors in Europe's industrial champions? Confused at best about the uncertain future of manufacturing across the Atlantic in the US. In contrast to Europe, the US leadership understands how to separate industrial politics and geopolitics. It's trying to take a strategically consistent line to protect jobs in the industry. 

 

Despite the much tougher U.S. stance toward China, corporations like Tesla continue to find common ground with Beijing that suits their strategic goals.

 

     European industries and corporations, which have so often been bailed out by taxpayers, are hesitant to step in like Elon Musk, and directly defend their interests. They seem to have become hostages of sloppy policymaking and political posturing.

 

     Thus, the risk of deindustrialization, which used to be a rhetorical phrase used to scare European voters, is becoming very real as Europe's industrial Kodak moment approaches.”