Article
· ft
· politics
If Brussels starts a trade war, Beijing will finish it
- 1. The EU's growing alarm at China's dominance in green technology and its interventionist trade policies has been consistently restrained by internal divisions among member states.
- 2. Past experiences, such as Donald Trump's interactions with China, illustrate Beijing's "escalation dominance" in trade conflicts, particularly through its ability to weaponize critical resources like rare earth elements.
- 3. A recent simulation of an EU-China trade war revealed Europe's deep internal disunity and immediate vulnerabilities to severe Chinese retaliation.
- 4. The trade war simulation exposed a critical "timeline disconnect" where EU actions would yield slow results, but China's countermeasures could devastate European industries within weeks.
- 5. China's sophisticated export control regime for rare earths, which requires end-user licenses, effectively prevents the EU from simply stockpiling these critical minerals as a protective measure.
- 6. The only viable long-term solution for the EU is to proactively develop a more resilient industrial sector and significantly reduce its dependence on critical materials like rare earths.
- 7. The author suggests that the strong temptation for the EU to initiate a trade war against China risks falling into a "politician’s syllogism"—taking action merely for the sake of doing something.
- 8. The upcoming EU meeting is predicted to produce vaguely threatening but ultimately unspecific pronouncements, reflecting the bloc's current limitations and lack of concrete leverage.