Europe’s phoney war with China is at an end. After years of building up an improved arsenal for a trade war, Europe is now showing it is willing to get tough on Beijing.

On Tuesday, EU investigators swooped on the Dutch and Polish offices of Nuctech, a maker of security scanners, in a case that hinges on one of Europe’s longest running grievances with China — lavish state subsidies that help Chinese firms undercut European rivals.

Nuctech was once run by Hu Haifeng, son of President Xi Jinping’s predecessor, Hu Jintao, and China’s reaction was predictably seething. The raid “highlights the further deterioration of the EU’s business environment and sends an extremely negative signal to all foreign companies,” China’s mission to the EU fumed.

The timing of such an inflammatory raid seems significant, ahead of a trip to Europe by Xi next month — his first in five years, taking him to France, Serbia and Hungary — marking a definitive shift in the way that Europe is prepared to tackle its trade problems with China.

  • chingadera@lemmy.world
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    8 months ago

    Who the fuck is it that is making these stupid taglines? Pulls it’s gun? Just post a normal title, if you have to spruce this shit up with nonsense, it means your writing sucks or the subject is not worth reporting in the first place

    • zephyreks@lemmy.ml
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      8 months ago

      The EU wants to keep people buying overpriced garbage instead of cheap garbage.

      Why? I have no idea.

      • cosmicrookie@lemmy.world
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        8 months ago

        I think that the main concern is, that EU has implemented certain quality requirements for its consumers, that are not being upheld by shops like these. It undermines the standards. I don’t see any issues with buying/selling products from China or other countries, inside the EU, but I understand that they need to live up to the standards required by the EU

        • zephyreks@lemmy.ml
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          8 months ago

          Plastic doohickeys have quality standards in the EU? This is news to me tbh

          I know it’s true for more robust goods, but Temu isn’t exactly used to buy cars

          • barsoap@lemm.ee
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            8 months ago

            Plastic doohickeys indeed have quality standards in the EU, e.g. plenty of phalates are limited to banned depending on product category (e.g. children’s toys). Without adherence to those standards no CE mark, without that no sales on the internal market.

  • Victor@lemmy.world
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    8 months ago

    This is mind-bending politics to me. My brain can’t handle the intricacies. I barely understand what this is about.

    • nexusband@lemmy.world
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      8 months ago

      Basically, China pumps incredible amounts of money in to companies, so they can undercut prices from EU companies crazy - forcing the EU companies to give up. EU wants to level the playing field.

      Edit: With taxes for Chinese companies that want to sell something in the EU, like China already does as well on the Chinese market.

      There also another thing at play here: China has laws, so that foreign companies need at least 50% Chinese “shares” (it’s not just shares), basically neutering these companies and also giving away the technology to Chinese third parties. Wich further erodes the playing field, because now Chinese companies not only can produce stuff dirt cheap, they can also do it with “high-tech” stuff, without having to pay and/or do the development.

      • zephyreks@lemmy.ml
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        8 months ago

        So does the US, though? Tesla has received an absurd amount of government support. So has Intel. This is targeted at China specifically, it’s not some economic leveling scheme.

        • nexusband@lemmy.world
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          8 months ago

          There’s still a huge difference, because most of the subsidies in “western” countries are Tax Subsidies (there are exceptions). Chinese companies get direct money. There’s also the fact, that management is often in the CCP, sometimes even directly involved in the law making and various other things. Almost all subsidies are also in government loans, meaning they have to be payed back - the difference to bank loans though is that the government loans do not have interest. Again something that isn’t happening in China…as the CCP mostly owns those companies as well, they do not have to pay back the money.

    • HobbitFoot @thelemmy.club
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      8 months ago

      Before the Industrial Revolution, Europe had an issue trading with China as Europe had issues finding anything to trade. Europe’s natural resources weren’t valuable enough and China was able to produce many manufactured goods.

      The colonization of the Americas was done in part to either get new natural resources not located in China or precious metals like silver and gold. The trade deficit got so bad that the UK and other European countries started selling opium as a way to balance trade.

      China’s reindustrialization is bringing itself back to that old status quo and the EU is trying to fight this.

  • Ð Greıt Þu̇mpkin@lemm.ee
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    8 months ago

    Fact that it’s Hu Jintao’s kid makes me think this is theatrics for both sides

    Hu Jintao’s from a different faction of the CCP than Xi Jinping, this is effectively Europe hitting one of his potential rivals.

  • AutoTL;DR@lemmings.worldB
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    8 months ago

    This is the best summary I could come up with:


    On Tuesday, EU investigators swooped on the Dutch and Polish offices of Nuctech, a maker of security scanners, in a case that hinges on one of Europe’s longest running grievances with China — lavish state subsidies that help Chinese firms undercut European rivals.

    For years, Brussels has repeatedly taken an emollient tone with Beijing, seeking ultimately futile dialogue on state subsidies and overcapacity in sectors such as steel, aluminum and green tech, rather than choosing direct confrontation and a tit-for-tat trade war.

    Europe’s early attempts to rival Belt and Road were seen as damp squibs, but an internal Commission document obtained by POLITICO says the bloc must now focus more seriously on building footholds in key strategic mining and energy interests in Africa and Central Asia.

    Two people familiar with the impending decision said Brussels was close to designating Shein as a “very large online platform” in the coming days, exposing it to extra scrutiny under the bloc’s content moderation law.

    In a classic sign of China’s asymmetric approach, shortly after von der Leyen launched her high-profile investigation into made-in-China electric vehicles, Beijing hit Europe’s liquor exports, in a move that seemed particularly tailored to France’s cognac sector.

    But despite those threats of retaliation, von der Leyen has little room to keep her powder dry, particularly as she fights to win a second term as Commission president — a move that would require support from France, the main advocate of protecting European industry from China.


    The original article contains 1,260 words, the summary contains 244 words. Saved 81%. I’m a bot and I’m open source!

    • andrefsp@lemmy.world
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      8 months ago

      What are you talking about? It’s known China pours tons of subsidies into their organisations that go so far as these organisations selling their products cheaper than what they cost to produce. They flood target markets with the clear intention of destroying local industries so they can take over the entire market for themselves.

      Also, free market? A company who wants to operate in china will have most times to do some sort of technology transfer and give part of the control to the Chinese government. Add child labour on top of that and the horrible working conditions Chinese workers endure and you will start to having a picture of how absurd it is to have “free market” with China.

      Free market is a good thing when you operate in the same leveled field.

      Victimisation?! They EU has done nothing about China’s BS for way too long and it’s now finally taking action. That’s a good thing if you ask me.

      • Meansalladknifehands@lemm.ee
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        8 months ago

        Eu does that also, we sell goods to other continents cheeper than what they can produce. We are not Innocent in this regard, we fuck over African producers by subsidizing the shit out of our products, so they can’t compete. Poor people buy our can of tomatoes, instead of tomotoes produced in the region, creating jobs and businesses.

        The US does the same thing, when NAFTA was signed the US started to subsidizing agricultural, to take over the Mexican markets. Clinton knew this would make a lot of people poor in Mexico and they would probably emigrate to the US, so Clinton increased the border security.

      • Xantar@lemmy.dbzer0.com
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        8 months ago

        Right, maybe I can be more clear on my stance then.

        I don’t agree with the outcome, nor am I saying it’s a good thing china is doing. I mean I’m impacted by the EU’s decisions as a part of it, so I would be shooting myself in the foot.

        What I’m saying is, the EU has been consistently making naive decisions when it comes to enforcing its economic safety. Making free trade agreements that would negatively impact its internal economical balance and turn out to be very much one sided, and not taking preemptive or earlier measures against china’s obvious economical dogma. It’s been decades. While I am indeed glad they finally do something about it, I’m just worried about the time it took them to realize the Chinese could be a threat or even worse, that they did it on purpose.

        Edit: I deleted my original comment because it was awkwardly and hastily written and did not reflect accurately what I meant to express.

    • zephyreks@lemmy.ml
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      8 months ago

      Because the EU doesn’t really allow large-scale subsidies in the same way. Of course, the US does, which is why Tesla has been so successful and half the chip companies in the world just decided to set up new fabs there, but…