As long as car manufacturers float on fares, Germany and China launch new plans

"We want the rules of the World Trade Organization to be maintained," German Chancellor Angela Merkel said at a press conference. Chinese Premier Li Keqiang fully agrees with her on the conference and also said that protectionism must be avoided to cope with global economic growth, writes thetruthaboutcars.com.

Chinese President Xi Jinping has been calling on governments around the world for some time to maintain an open trade policy. "The policy of selfishness, myopia and the narrow approach that we reject.We endorse the rules of the World Trade Organization, we support the idea of. a multilateral trading system and an open global economy, "said Xi Jingping in a statement last month, in which he promised to open his market to the country's trade mechanisms. continues to be characterized by exceptional protectionism. All banks belong to the state, but they seek to allow only minimal foreign investment, unless they are perceived as beneficial to the country.

The automotive industry considers this situation as a partnership defined by the state. companies. Critics say companies seeking to join the lucrative Asian market are forced to say goodbye to their own intellectual property, transfer profits and give China the opportunity to take advantage of technologies that have already been developed for many years. years. It is also necessary to say that China has fairly strong import tariffs for advanced technology products, especially automobiles, in China.

The impression that the recent proposals of the President of the United States of America, Donald Trump Administration, were aimed at These problems prevent China from implementing its plan to become a world leader in all sectors of technology and advanced manufacturing by 2025. However, because of the nascent reaction that has occurred, it was a really weird circle of friends. The United States hoped that by threatening new import duties, Europe would reduce its own. Although in the beginning, this tactic proved to be true, especially when the rhetoric of Merkel's whimsical storyline was heard, it now seems that Germany would prefer a helicopter to China, a country that is currently struggling to meet the new US tariffs. In May, China promised even 15%. reduce tariffs on imported cars. So she thought of calming down the United States. But, in fact, nothing like it. On the contrary, China is up to 40%. increased import duties on cars manufactured in the United States.

Reuters reported that the German-Chinese commercial agreements included agreements with Siemens, Volkswagen, BMW and BASF. The Chinese government said that German companies and institutions will soon be able to issue yuan bonds in China. This, of course, would be a very important agreement if it did not promise, and the promises of the Chinese government, as experience shows, were particularly reluctant.

Representatives of several German companies and politicians accused the government of getting too much revenge on Chinese companies. China does not show the slightest desire to give it the same thing. Chinese companies have already taken several important control packages. Although Merkel welcomed the booming Chinese financial sector, he also expressed the wish that Beijing boost the opening of other markets.

The United States does not decide in any way what to do with D. Tariff Shortcuts. It is obvious that China is hitting below the band, but the Senate voted overwhelmingly against the trade agreement and said that the president should first seek congressional approval and then talk about the application of tariffs for other countries

that a particularly aggressive trade policy may scare the allies and, furthermore, jeopardize the risk of domestic investment. Car manufacturers have already argued that the new US tariffs for cars and their parts would significantly impede business development. What is their opinion on the new Chinese tariffs?