Europe’s latest trade war with China is underway.
It looks like quite a spectacle, but honestly, I saw a similar script 20 years ago. Back then it was Japanese semiconductors and steel; later, solar panels and rare earths. Now it’s electric vehicles and the clean-energy supply chain.
The Europeans’ logic is simple: overcapacity + subsidized dumping = unfair competition. But they’ve forgotten one thing: over the years of globalization, who hasn’t benefited from the transfer of industries? Now that they can’t make cheap goods themselves, they’re crying foul.
What’s really interesting is what comes next: how will this trade friction affect exchange rates and commodities? The euro-to-yuan exchange rate will definitely fluctuate, and the battle over pricing power for industrial metals like copper, aluminum, and nickel is about to be reshuffled.
History tells me that when trade wars reach their conclusion, it’s often not a matter of who wins. Instead, global supply chains are restructured, capital flows change, and currency exchange costs rise—and in the end, ordinary consumers and small and medium-sized businesses foot the bill.
As the old saying goes: when it comes to cycles, there are no eternal winners—only players who know when to rebalance their portfolios.
It looks like quite a spectacle, but honestly, I saw a similar script 20 years ago. Back then it was Japanese semiconductors and steel; later, solar panels and rare earths. Now it’s electric vehicles and the clean-energy supply chain.
The Europeans’ logic is simple: overcapacity + subsidized dumping = unfair competition. But they’ve forgotten one thing: over the years of globalization, who hasn’t benefited from the transfer of industries? Now that they can’t make cheap goods themselves, they’re crying foul.
What’s really interesting is what comes next: how will this trade friction affect exchange rates and commodities? The euro-to-yuan exchange rate will definitely fluctuate, and the battle over pricing power for industrial metals like copper, aluminum, and nickel is about to be reshuffled.
History tells me that when trade wars reach their conclusion, it’s often not a matter of who wins. Instead, global supply chains are restructured, capital flows change, and currency exchange costs rise—and in the end, ordinary consumers and small and medium-sized businesses foot the bill.
As the old saying goes: when it comes to cycles, there are no eternal winners—only players who know when to rebalance their portfolios.