शैडोइंग अभ्यास: Can Europe stand up to China on trade? | The Economist - YouTube के साथ अंग्रेजी बोलना सीखें

China is a giant threat.

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China is a giant threat.

And I am really struck.

When I talk to some of your colleagues at the top of this commission,

they talk about the threat that China's cheap exports flooding the world

are so large that you could be talking about the destruction of entire sectors of European industry in a very few years.

Is that the level of threat that you see?

I think that that's clearly the perception and I think we have also the figures clearly to underpin it.

I'm very open about the fact that the trade as we have it right now between China and Europe is simply unsustainable.

I mean, we cannot create deficit 1 billion euros a day.

That's right, right?

The trade deficit is running at 1 billion euros a day.

1 billion euros a day.

And we see that

if you look just from top of my head over the last five years

that the Chinese export increased by something like 50% and our exports to China decreased by 30%.

On top of it, we see that a lot of European companies is kind of squeezed out from the third market.

So really, that's what you would call in basketball the full court pressing.

And therefore, I believe that we also need very firm,

regular, structural engagement with Chinese counterparts how to deal with that,

because clearly we have a huge trade with them.

We are faced with a lot of problems.

And I want, again, to prevent some kind of additional drama with the structured engagement,

because I believe it's clearly necessary.

But to take a step back,

I mean, dialogue is great dialogue is lovely,

but it's pretty clear that China's ambition,

it's not just about arguments about this or that market access.

China currently makes, it's 30% of all global industrial production is in China.

The UN's estimate is that goes to 45% by the end of this decade.

So almost half of everything made in a factory in the whole world we've made in China,

and yet they only consume 13% of global production.

So that is an extraordinary amount of stuff that has to go somewhere.

America's closing itself off.

You're the last open rich world market.

I mean your outgoing top trade officials said this is an imbalance that the world cannot digest.

So dialogue is great but don't you actually have to threaten really serious measures?

You know new instruments, the overcapacity instrument people talk about or even you know

I think that in my experience I really believe that people

and partners react better to engagement than to threats and

that I'm sure that I will use this approach until I conclude my public service.

And I think that what's very clear and I can tell you that we are not shy

about how we are messaging this to our Chinese counterparts,

or we would have to resort to more of these safeguards measures simply to protect the European market.

But what I can also say is that we'll be always respecting international trading law,

WTO methodology, and we will do it in a very transparent way.

But there's a gap, isn't there,

between you describing this absolutely unsustainable flood of Chinese exports into Europe and kind of not wanting to have confrontations,

wanting to keep dialogue going.

So let's talk about a recent Chinese threat.

If you want to have a Chinese factory in Europe,

you have to use European components,

you have to hire European workers and you have to transfer technology.

You're trying the same kind of jujitsu move on China that China used on Western companies so successfully 20,

30 years ago.

What was China's response?

A threat.

There will be countermeasures.

This is totally unacceptable.

So China is ready to fight tough.

Are you ready to take some pain to show China

that they have to play a different game if they want to keep access to European markets to invest in Europe?

I think that I would really advise against any threats or any...

But they're the ones making the threats.

They make the threats on 27th of April.

So what do you do?

What you do is that we of course are very clear about the fact

that we are going to fight tooth and nail for every factory,

for every job in the European Union.

And I was very very clear about that,

but I would not be sending,

you know, the threatening messages over the wires to my Chinese counterparts

because I want to talk to them and I want to go through,

I would say, the, you know,

sectors by sector situation where we clearly have a problem and what are the measures we can undertake together.

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