CCTV News Client News, deeply trapped in the energy crisis, , inflation vortex, and the economy is on the verge of recession. Europe is becoming increasingly clear in the face of reality.
Previously, the European allies of the United States were almost "compliant" with Washington on the issue of increasing sanctions against Russia. And now these allies are clearly seeing that the "European crisis" has become the "American opportunity".
The United States not only sold its own production of liquefied natural gas to Europe at several times of high prices, resulting in the European energy-intensive industries reducing production or even stopping production due to rising production costs, but also re-playing the "America First" routine, pushing Europe into the abyss of " de-industrialization " by allowing advantageous manufacturing industries to flow to the United States.
《Wall Street Journal 》 website reported that the US economy has become a big winner in the European energy crisis.
Faced with such a situation, the two major French and German countries, as the "dual engine" of EU , finally broke out.
"Disaster" and they found a new consensus
French President Macron and German Chancellor Scholz held talks in Paris a few days ago, unanimously agreeing that the so-called "Inflation Reduction Act" of the United States is a distortion of the market, with the purpose of "sucking" enterprises from Europe and other places into the United States.
It is worth noting that although France and Germany have been disagreeing on energy, defense and other issues recently, in the face of the protectionist policies of the United States, Macron and Scholz reached a consensus: If the United States continues to promote the Inflation Reduction Act, "the EU cannot sit idly by."
US "Political News" News Network report screenshot
The "Inflation Reduction Act" pointed out by French and German leaders is the latest large-scale expenditure plan signed by US President Biden in 28.
While shouting the slogan of responding to climate change and investing in and developing renewable energy, the bill sets the provisions of the US government to provide high subsidies to the local electric vehicle industry, and regards conditions such as "local assembly of complete vehicles in North America" as a prerequisite for enjoying subsidies.
On August 16th local time, US President Biden signed the "Inflation Reduction Act".
This move has aroused strong dissatisfaction from the EU. The latest statements of French and German leaders have been widely interpreted by the outside world as "a warning of trade retaliation against the United States."
Faced with the United States' risk, French President Macron took the lead in launching a "counterattack".
He recently called for more support to consumers and companies who choose the EU to produce electric car .
He also said that as a countermeasure to the U.S. Inflation Cut Act, France will launch a pilot subsidized rental program starting from 2024, allowing low-income families to buy electric cars at installments of 100 euros per month.
US media said that in the past, France has always been the most outspoken country in the EU when it confronted the United States on trade issues. Now, facing a possible electric vehicle trade war, France, which once again sang " white-faced ", will not be isolated because the German automobile industry is also deeply impacted by the Biden administration's "buy American goods" policy.
"But this is not the only focus of contradiction. The fact that Europe is increasingly relying on importing liquefied natural gas from the United States has pushed Europe's dissatisfaction to a new level."
US "Political News" News Network: Bernard Spitz, the relevant person in charge of French business lobbying, complained that the United States has gained economic benefits from the Russian-Ukrainian conflict, but suffered less economic consequences than Europe, which is "almost undisputed".
Will the new European and American trade war come...
Whether the US "Inflation Reduction Act" will trigger a European and American trade war is unknown, but it is almost certain that the trade relations between the two sides, which once relaxed, will become tense again.
At the informal meeting of the EU Minister of Trade held by the Czech on October 31 local time, Dongbrovskis, Vice President of the European Commission , pointed out that many green subsidies stipulated in the Inflation Cuts Act have created unfair competition for the EU's automobile, renewable energy, battery and energy-intensive industries.
European Commission Vice President Dongbrovskis (left) and Czech Trade Minister Sikra (right) spoke at a press conference
The two major economies of the EU and the United States account for half of the global economic output and one-third of the global trade volume, and the two sides are important trading partners of each other.
In 2013, the EU and the United States officially launched negotiations on the Transatlantic Trade and Investment Partnership Agreement (TTIP, that is, the European and American Bilateral Free Trade Agreement ). However, after taking office, the Trump administration, which pursues the "America First" policy, put aside negotiations and tried to force American companies to move their industrial chains back to their homeland through trade protection measures.
From increasing tariffs on steel and aluminum products in Europe and other places to taking the lead in trade retaliation against subsidy disputes between US and European airline enterprises, the US-European trade war initiated by the Trump administration once developed to a white-hot level.
Although the Biden administration temporarily suspended the US-EU trade war in order to repair the long-breaking transatlantic relations after taking office, its actual practices are exactly the same as those of the Trump administration.
As early last year, Biden announced the "buy American goods" policy, aiming to help American companies squeeze out foreign competitors and win the US government's rich contracts with profits.
"New York Times ": On January 25, 2021 local time, Biden signed an executive order to support the purchase of US products.
Not only that, the Biden administration’s Bipartisan Infrastructure Act, the “ Chip and Science Act” and the “Inflation Cutout Act” issued by various names since last year have included discriminatory electric vehicle subsidies, exacerbating the risk of the global economic recession, including the EU.
Bloomberg quoted former European Commission Trade Commissioner Cecilia Malmstrom as saying, "This U.S. administration talked a lot about supporting allies and cooperating with allies, but they did not fully cooperate with allies."
"If you miss the time between Europe and the United States and Europe over Airbus and Boeing , then a dispute over green technology is expected to fill this gap. As the subsidy competition between the two sides unfolds, this may be worse politically than the subsidy dispute between Airbus and Boeing."
The British " Financial Times " warned in a comment article.
"Financial Times" report screenshot
The article believes that solving the trade issues of the United States and Europe requires both sides to adopt a more constructive attitude, especially the United States, which "regularly takes unilateral measures." “While working to build a binding partnership, the last thing the Transatlantic Partnership needs is another protracted subsidy dispute.”
(Source: CCTV News Client)
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