In a recent opinion piece, Bloomberg urged Europe and Germany to chart a “better path” by embracing free trade and treating challenges as opportunities, rather than adopting the “naked protectionism” promoted by the United States.
The call comes amid contrasting diplomatic visits: German Chancellor Olaf Scholz’s recent trip to China, and U.S. Treasury Secretary Janet Yellen’s visit, during which she cautioned that Chinese-made electric vehicles and clean technologies were causing global “negative spillovers.”
Despite these concerns, the automotive industry remains a cornerstone of Germany’s economy and a key area where the European Union maintains a trade surplus with China. Major European automakers such as Volkswagen, BMW, and Mercedes-Benz Group sell approximately one-third of their vehicles in China, highlighting the significance of this market.
“Free trade needs to be our North Star, our guiding principle,” BMW Chairman Oliver Zipse was quoted as saying by Bloomberg. He emphasized that the European auto industry “is not massively damaged by the import of Chinese automobiles, nor is it in the interest of the EU to further impose customs on these products.”
Zipse stressed that the export of Chinese vehicles aligns with European principles and poses no harm to Europe or the global market. This perspective underscores a belief in competition as a catalyst for improvement rather than a threat.
The Bloomberg opinion piece echoed this sentiment, stating, “Capitalists shouldn’t retreat into their shells at the first sign of competition. Instead, they should treat every danger as an opportunity to up their game.”
The article also highlighted the irony of the United States, “which pretty much invented the spirit of ebullient boosterism,” now retreating from its own ideals by embracing protectionist policies.
By choosing collaboration over isolation, Europe and Germany have an opportunity to lead by example, fostering a global trade environment that encourages innovation and mutual growth.
Reference(s):
Europe should avoid naked protectionism of the U.S.: Bloomberg
cgtn.com
