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Reactionary Visions and eNtiTiES

by Cat Wed Sep 13th, 2023 at 04:13:20 PM EST

2023 State of the Union Address by President von der Leyen (13.09.23)
When I stood in front of you in 2019 with my programme for a green, digital, and geopolitical Europe I know that some had doubts. And that was before the world turned upside down with a global pandemic and a brutal war on European soil.

But look at where Europe is today

We have seen the birth of a geopolitical Union—supporting Ukraine, standing up to Russia's aggression, responding to an assertive China, and investing in partnerships.
Long live Europe.

Too often, our companies are excluded from foreign markets or are victims of predatory practices. They are often undercut by competitors benefitting from huge state subsidies.

We have not forgotten how China's unfair trade practices affected our solar industry. Many young businesses were pushed out by heavily subsidised Chinese competitors.

guardian | Solar panel spat threatens trade war between China and Europe (06.09.12)
..."EU Pro Sun, an industry association, claimed in its complaint lodged on 25 July 2012 that solar panels and their key components imported from China enter the European market at prices below market value [sic]," the [European] commission said. "The commission is legally obliged to open an anti-dumping investigation if it receives a valid complaint from a Union industry which provides evidence that exporting producers from one or more countries are dumping a particular product into the EU and causing injury to the Union industry."....
ec.europa.eu | EU imposes provisional anti-dumping tariffs on Chinese solar panels (04.06.2013)
... As the market for and imports of solar panels in the EU is very large, it is important for this duty not to disrupt it. Therefore, a phased approach will be followed with the duty set at 11.8% until 6 August 2013. From August on the duty will be set at the level of 47.6% which is the level required to remove the harm caused by the dumping to the European industry....
eias  EU-China Solar Panels Trade Dispute: Settlement and challenges to the EU (2015)
The challenges to the EU in the solar panel case
... The growing trade relations of Member States with China weakened the Commission's role of representing an integrated EU in negotiations. And while European solar manufacturers filed the complaint on the basis of China's noncompetitive pricing, the low costs of solar panels redounded to the benefit of the EU's renewable energy policy. As the EU sought to be a global model for using renewable energy, solar power, being an important renewable energy source to meet the 20 percent EU renewable energy consumption by 2020, witnessed a booming growth.
archive post-FIT "green" technology
Under the 2020 package, Member States have taken on binding national targets for raising the share of renewable energy in their energy consumption. The feed-in-tariff23, has been adopted by many countries to promote the installation of solar panel products. In particular, EU countries subsidise solar customers while the Chinese government subsidises producers. Subsequently, the heavy budgetary burden forced EU Member States to drastically curtail their subsidies to consumers of solar panels. The decreasing prices of solar panel products imported from China have relieved the European countries of the financial burden from subsidies.
archive  "They are trying to revive slavery in the free land, to bring you to your knees. You have to choose between hunger and human dignity"
Moreover, the Chinese products have also been considered by some as an important factor for making solar power "cheap enough to revolutionise Germany's energy sector".24 However, the EU solar manufactures' interest also needs to be considered under the WTO framework. There is also a challenge for the EU to balance the conflict between its solar manufacturing industry and the consumers....
rystadenergy | Europe hoarding Chinese solar panels as imports outpace installations; €7 billion sitting in warehouses (19.07.2023)
Europe's spending on solar imports has almost quadrupled in the last five years, surging from €5.5 billion in 2018 to more than < evil pinkie > €20 billion last year, while the supply source has become increasingly concentrated. An overwhelming €18.5 billion, equal to 91% of all PV import expenditure, was spent on Chinese products, as volatile panel prices impacted buying decisions. A critical shortage of solar-grade polysilicon—a crucial raw material in manufacturing PV modules—in 2021 and 2022, coupled with rising demand for installed solar PV, contributed to soaring panel prices worldwide. As China dominates both the production and processing of polysilicon into PV modules, Chinese manufacturers have been increasingly able to undercut the competition on price. Today, panels made in China often cost as little as two-thirds of European-manufactured capacity.
European Warehouses Are Overflowing With Chinese Solar Panels (20.07.23)
A critical shortage of solar-grade polysilicon—a crucial raw material in manufacturing PV modules—in 2021 and 2022, coupled with rising demand for installed solar PV, contributed to soaring panel prices worldwide. As China dominates both the production and processing of polysilicon into PV modules, Chinese manufacturers have been increasingly able to undercut the competition on price.
European countries are desperate to get their hands on affordable solar infrastructure to advance their renewable energy targets, decarbonize, and avoid paying elevated prices for new capacity. Although efforts are underway to build a reliable solar supply chain in Europe, the need for panels now means leaders cannot wait until 2025 or later to buy European.
Energy policies and the green transition continue to drive demand for European solar PV growth. Since 2022, the Green Deal Industrial Plan (GDIP), RePowerEU, and the Net Zero Industry Act have all set ambitious solar PV goals. These goals include a target for 30 GWdc of European manufacturing along the entire value chain by 2025 and 40% of installed solar PV being manufactured within the continent by 2030.
archive "We cannot change the geology in Europe"
Despite these ambitious goals, between 2019 and 2022, locally-made modules could not keep pace with the growth of imported panels. From 2021 to 2022, the amount of Chinese solar modules imported by European countries increased by 112% to about 87 GWdc. The installation rate in these countries has yet to meet anticipated levels, resulting in a sizeable gap of almost 47 GWdc in 2022 in shipped versus installed modules.
The imports are heading to several key destinations, including the Netherlands, Spain, Germany, Poland, France, Greece, Italy, and the UK. The Netherlands was the standout leader in Chinese PV imports in 2022, bringing in almost 45 GWdc alone, more than ten times the amount of panels installed domestically across the year. Spain, Germany and France also imported more panels from China than they installed from any source. Greece has a similar profile to the Netherlands but on a smaller scale, with the country installing the equivalent of only 15% of the capacity imported from China.
by Cat on Wed Sep 13th, 2023 at 07:05:44 PM EST
Take the electric vehicles sector. It is a crucial industry for the clean economy, with a huge potential for Europe. But global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies.

This is distorting our market.

And as we do not accept this from the inside, we do not accept this from the outside. So I can announce today that the Commission is launching an anti-subsidy investigation into electric vehicles coming from China.

Von der Leyen hits China with electric vehicle subsidy PROBE, 13 Sep
..."We don't want to see Chinese electric vehicles benefiting from our climate policies," [EPP-CSU leader Manfred] Weber told MEPs after von der Leyen's annual address. "We have to activate our trade defense instruments to avoid another solar panel attack [sic]," he added, referring to a previous trade fight that devastated Europe's solar power players a decade ago....
counterpointresearch | Berlin Factory Takes Tesla to Top Spot in Europe EV Sales as Chinese Brands Gain Ground (14.03.23)
Commenting on the market dynamics, Research Analyst Abhik Mukherjee said, "EV sales in Europe are increasing at a slower pace than expected. But since many European brands target to convert most of their models to electric by 2025, we expect EV sales to accelerate in the next two years. European automakers need to keep a close eye on Chinese competitors. Most Chinese brands, like BYD, Lynk, NIO and XPeng, made their European debut in 2021, selling just under 21,000 EVs cumulatively. In 2022, Chinese brands sold almost 58,000 EVs, capturing over 2% of the market. With the current trajectory, their share is expected to double to around 5% by the end of 2023."
europe.autonews | China poses greatest risk to Europe's automakers, study says (09.05.23)
..."The stakes are high for Europe's automotive industry: four out of five cars sold in Europe are assembled locally," the ["Chinese Challenge to the European automotive industry"] report added.
Having recognized the potential of electric vehicles 15 years ago, China has since invested vast resources in building a competitive electric vehicle ecosystem manufacturing. As a result, it now leads the global EV landscape, selling over double the number of BEVs in 2022 compared to Europe and the US combined, while also holding a competitive edge in nearly all aspects of the BEV value chain. Because they account for more than 80% of EV sales in [China], Chinese brands have seen their [domestic] market shares climb from less than 40% in 2020 to close to 50% in 2022, while the country's automotive trade balance went from a -USD31bn [export] deficit to a +USD7bn surplus over the same period. At the same time, already in 2022, three of Europe's best selling BEVs were Chinese imports. As BEVs eventually grow to account for all new car sales in Europe, Europe-made cars are likely to be substituted by those made in China...
"Europe is also the world's export powerhouse in the [automotive] sector, with car trade generating between 70 billion and 110 billion euros in trade surplus for the European economy every year over the past decade."

The [Allianz SE] report said the U.S. Inflation Reduction Act (IRA) had made Europe a target for Chinese exports.

archive EU welcomes correction to US green subsidies act
While Europe remains comparatively open to imported EVs— Tesla for instance, accounts for 20 percent of fully-electric car sales in Europe—the U.S. is "set to be a much tougher market to crack for Chinese vehicles" because of the IRA, the report said....
scmp | Chinese electric cars to capture 15 per cent of European market by 2025 in leap forward for exports (13.06.23)
This would represent a fast step forward for the Chinese car brands, as their cars accounted for less than 10 per cent of the 1.1 million battery electric vehicles (BEVs) sold in Europe last year [2022], according to a report released by KPMG on Monday in Shanghai at China's first Carbon Neutrality Expo.
Allianz| Automotive industry unplugged (16.06.23)
China-made vehicles make further inroads. Three made-in-China battery-electric vehicles have been some of the category's best-selling models year-to-date, bringing the share of Chinese imports to about 3-4% of total registrations (compared to virtually zero in 2019).
reuters | China's EV makers face cost and consumer challenges to conquer Europe (18.08.23)
Of new EVs sold in Europe so far this year, 8% were made by Chinese brands, up from 6% last year and 4% in 2021, according to autos consultancy Inovev. And more are coming. At least 11 new, < wipes tears > mass-market, China-made EVs will launch in Europe by 2025, according to a study by Allianz. Western automakers are rattled, with Carlos Tavares, the CEO of Peugeot-to-Fiat carmaker Stellantis [!], warning last month of an "invasion" of cheap Chinese EVs in Europe.
archive batteries that are eligible for US tax credits
The average price of an EV in China was less than 32,000 euros ($35,000) in the first half of 2022 compared with around 56,000 euros in Europe, according to researchers at Jato Dynamics. But Chinese brands are likely to struggle to sell cars in Europe as cheaply as at home.

Logistics, sales taxes, import duty and meeting European certification requirements all add costs, said Spiros Fotinos, Europe CEO for Chinese brand Zeekr, owned by Geely.

archive a special free-trade partner status for critical minerals
Surveys indicate most potential EV buyers in Europe do not recognise Chinese brands. Those who do are hesitant to purchase a Chinese car—reminiscent of Japanese and South Korean automakers' decades-long struggle to win trust and adapt to European tastes. Just 14% of 1,629 German consumers surveyed by YouGov in 2022 were aware of BYD, the world's second-largest EV maker after Tesla. A total of 17% had heard of premium brand Nio, while 10% knew of Geely's Lynk & Co and 8% of XPeng. Of the 95% of consumers aware of Tesla, 10% would consider buying one as their next car, the survey showed. But among those aware of Chinese brands, 1% or fewer would consider buying one.

[Alexander Klose, Exec VP of Chinese EV brand] Aiways said it decided against advertising its Chinese heritage due to concerns that consumers would be hesitant about buying Chinese-made products. Several Chinese carmakers have secured five-star safety ratings under Europe's safety standards, going well beyond legal requirements to try to overcome customer doubts.

archive Japan breaks ranks
by Cat on Thu Sep 14th, 2023 at 12:30:53 PM EST
The Inflation Reduction Act's manufacturer and consumer incentives (Oct 2022) intended to "secure" vertically integrated production processes in the US by controlling "critical mineral" imports and processing as well as "clean" electronic assemblies' certification disqualifies a range of vehicle manufacturers and parts suppliers from market participation. Not only European  but popular Japanese and Korean ICE, HEV, EV models that in fact share material supply lines. Cultivated in large part by decades of Chinese R&D—development, demand, distribution. Excluding US and EU trade.

gingerriver | Who are the main customers of Chinese-made vehicles?, 21 June

Official figures showed that China overtook Japan to become the biggest car exporter in the world in the first quarter of 2023, shortly after surpassing Germany as the second largest in 2022.

As both the largest automobile market and exporter, where were the Chinese cars exported to? How much is the potential of the Chinese market and car manufacturers?

Caijing Magazine, a China's economy study magazine, analyzed the latest trends in the car market and warned car manufacturers of the past mistakes made by Chinese exporters, and highlighted the significance of favorable foreign trade policies, cost-effective products, and innovative momentum in new technologies. Your Ginger River believes it is a worthwhile piece for anyone interested in the market to dive into.

Some highlights first:

• In 2022, Russia imported approximately 117,000 passenger vehicles from China, a 40 percent increase compared to the previous year. China has become the main source of imported passenger vehicles in Russia.

No exaggeration. No surprise. G7 auto-makers exited the RF to comply with sanctions against Russian EntITies. Turkish models, too, are creeping in 2023 to compete along with domestic models for RUB.
• Mexico's position as the second-largest buyer of Chinese automobiles among the top ten countries is surprising, since Mexico itself is a major automotive producer, ranking seventh globally in terms of production volume.
No exaggeration. No surprise. MX (and CA) labor assembles US models for export to US manufacturers' dealer showrooms. "Country of origin" and serial number labels per component: Such is the extent of MX "production" per vol and val.
• In Australia or Southeast Asia, Chinese automobiles possess an advantage in terms of price over European brands. They are gradually capturing consumers who used to buy from Honda, Toyota, Mazda [!] and other manufacturers [eg. GM, Ford], offering them affordable vehicles.
No exaggeration. No surprise. Demand in this case expresses local currency purchase power parity more so that putative Chinese "slave wages" or suspect "dumping".
by Cat on Sun Sep 17th, 2023 at 09:38:37 PM EST
[ Parent ]
Chinese automaker to deliver 300 NEVs to Türkiye, 18 Sep
China's Jiangxi Jiangling Group Electric Vehicle Co., Ltd. will deliver 300 new energy vehicles (NEVs) to Türkiye in October, the company said.

The Jiangling "Yi" model to be exported to Türkiye uses a dual motor ["HEV"] combination, with a comprehensive output power of 170 kW and a 100-km acceleration within 5.8 seconds, according to Nie Xiaoyong, vice president of the Engineering Research Institute at the company...

by Cat on Mon Sep 18th, 2023 at 01:06:24 PM EST
[ Parent ]
Notice of initiation of an anti-subsidy proceeding concerning imports of new battery electric vehicles designed for the transport of persons originating in the People's Republic of China, 4 Oct
2.   Product under investigation
The product subject to this investigation is new battery electric vehicles ('BEVs'), principally designed for the transport of nine or less persons, including the driver, propelled (3) solely by one or more electric motors. Motorcycles are excluded from the present investigation.

All interested parties wishing to submit information on the product scope must do so within 10 days of the date of publication of this Notice (4).

3.   Evidence of subsidisation
The product allegedly being subsidised is the product under investigation originating in the People's Republic of China ('the country concerned'), currently classified mainly under CN code 8703 80 10. The CN code is given for information only without prejudice to a subsequent change in the tariff classification. The scope of this investigation is subject to the definition of the product under investigation as contained in section 2.

The Commission has gathered sufficient evidence that the producers of the product under investigation from the People's Republic of China have benefited from several subsidies granted by the Government of the People's Republic of China.

The subsidy practices consist, inter alia, of (1) direct transfer of funds and potential direct transfers of funds or liabilities, (2) government revenue forgone or not collected, and (3) government provision of goods or services for less than adequate remuneration.

< wipes tears >
In particular, the Commission has found evidence, among others, of various grants, provision of loans, export credits and credit lines provided by State-owned banks or bonds underwritten by State-owned banks and other financial institutions at preferential terms, provision of preferential export insurance; income tax reductions and exemptions, dividend tax exemption, import and export tax rebates; VAT exemptions and rebates; and government provision of goods (such as raw and input materials as well as components) and services for less than adequate remuneration.

The above schemes appear to be subsidies < wipes tears > since they involve a financial contribution by the Government of the People's Republic of China or other regional governments (including public bodies), or by private bodies directed or entrusted by the Government of the People's Republic of China, and which confer a benefit to the recipients. They appear to be specific and, thus, countervailable [sic], among others, since they are limited to certain sectors, products and/or regions.

In view of Articles 10(2) and 10(3) of the basic Regulation, the Commission prepared a memorandum on sufficiency of evidence containing the Commission's assessment on all the evidence at its disposal concerning the country concerned and on the basis of which the Commission initiates the investigation. That memorandum can be found in the file for inspection by interested parties.

The Commission reserves the right to investigate other relevant subsidies, which may be revealed during the course of the investigation.

Ukraine: Commission proposes new facility of up to €50 billion 2024-2027, 6 July
"for grants, guarantees, and loans"
Ukraine's accession would cost €186B, EU estimates, 4 Oct
over 7 years (€26B p.a.) plus "a further burden of around €74 billion" excluding, ahem, "nonrepayable" CAP "support"
...When it comes to the EU's farming subsidies, Ukraine would be the main beneficiary, receiving €96.5 billion over seven years....
BULLETIN: US Inflation Reduction Act Crime
by Cat on Wed Oct 4th, 2023 at 11:33:12 PM EST
[ Parent ]
euronews | Digital Tech Trends Drive the Motor Industry into the Future, 16 Sep autonomy
Japanese company Sekisui makes materials for different industries worldwide, including mobility. It's been in Europe for 60 years and has been supplying the European automotive market since the 1980s. The firm says 75 percent of today's cars in Europe are equipped with its technologies. Components for glass are a big focus. This concept car, showing off the windows of tomorrow
by Cat on Mon Sep 18th, 2023 at 01:27:44 AM EST
[ Parent ]
This European industrial policy also requires common European funding. This is why—as part of our proposal for a review of our budget—we proposed the STEP platform. With STEP we can boost, leverage and steer EU funds to invest in everything from microelectronics to quantum computing and AI. From biotech to clean tech. Our companies need this support now—so I urge for a quick agreement on our budget proposal.

Strategic Technologies for Europe Platform (STEP): "pre-financing" is nothing like state aid or a CHINESE subsidy

DW | ECB raises interest rates by 0.25%, 14 Sep

"Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," the ECB said in a statement. "The Governing Council's future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary," it added.
This will help to bring down inflation [rates] further. Our past interest rate hikes are already having an < wipes tears > effect on the economy. Our future decisions will depend on how we see the economy and inflation [rates] developing.

The economy will stay weak for a while
Businesses are investing less and their exports are down. Manufacturing is struggling, and services are now starting to falter. But over time, lower inflation [rates] and higher incomes should help the economy recover.

Inflation is falling but is still too high
Food is still getting more expensive, even though prices are not rising as much as before. Prices for services, especially holidays and travel, are keeping inflation [rates] high. In the coming months, inflation should drop further.

People and businesses are taking out fewer loans
As loans become more expensive, people and firms are borrowing less....

The changes put the main refinancing operations rate—the fee ordinarily charged to commercial lenders to borrow money and arguably the most important of the three—at 4.25%. The deposit facility, paid to lenders that deposit funds with the ECB on a short-term basis, rose to 4%. And the marginal lending facility, paid by commercial lenders for short-term liquidity injections, was put at 4.5%....
ecb.europa.eu | Monetary Policy, 14 Sep press release
...The September ECB staff macroeconomic projections for the euro area see average inflation at 5.6% in 2023, 3.2% in 2024 and 2.1% in 2025. This is an upward revision for 2023 and 2024 and a downward revision for 2025. The upward revision for 2023 and 2024 mainly reflects a higher path for energy prices. Underlying price pressures remain high, even though most indicators have started to ease. ECB staff have slightly revised down the projected path for inflation excluding energy and food, to an average of 5.1% in 2023, 2.9% in 2024 and 2.2% in 2025. The Governing Council's past interest rate increases continue to be transmitted forcefully. Financing conditions have tightened further and are increasingly dampening demand, which is an important factor in bringing inflation back to target. With the increasing impact of this tightening on domestic demand and the weakening international trade environment, ECB staff have lowered their economic growth projections significantly. They now expect the euro area economy to expand by 0.7% in 2023, 1.0% in 2024 and 1.5% in 2025....
by Cat on Thu Sep 14th, 2023 at 02:45:30 PM EST
This is why we will put forward a European Wind Power package— working closely with industry and Member States.

We will fast-track permitting even more. We will improve the auction systems across the EU. We will focus on skills, access to finance, and stable supply chains.

But this is broader than one sector: From wind to steel, from batteries to electric vehicles, our ambition is crystal clear: The future of our clean tech industry has to be made in Europe.

commission.europa.eu | Strategic Technologies for Europe Platform
"Let's make sure that the future of our industry is made in Europe."
European Commission President Ursula von der Leyen, State of the Union Address, 14 September 2022.

The Strategic Technologies for Europe Platform (STEP) is the European reply to the need to boost investments in critical technologies in Europe.

STEP seeks to reinforce, leverage and steer EU funds—existing and new—to investments in deep and digital, clean and bio technologies in the EU, and in people who can implement those technologies into the economy.

Proposal for a Strategic Technologies for Europe Platform (29.06.23) 67 pp
STEP also introduces the Sovereignty seal— the EU quality label for sovereignty projects.

To find all information about existing funding opportunities for STEP investments and relevant contact details of national authorities, visit the dedicated Sovereignty portal.

STEP will support investments in companies that contribute to preserving a European edge on critical technologies, throughout companies' full life cycle.

by Cat on Thu Sep 14th, 2023 at 03:07:26 PM EST
[ Parent ]
Placing the STEP at the heart of the EU budget is the most effective solution. The transition to climate neutrality, resilience and digital technologies are already guiding principles of the multiannual financial framework: 30% of the EUR 2 trillion 2021-2027 MFF which includes the NextGenerationEU recovery programmes are being spent on climate actions and more than 20% of the Recovery and Resilience Facility is dedicated to digital policies. Besides, the Digital Europe Programme supports bringing digital technology to businesses, citizens and public administrations. The EU budget is also the ultimate EU tool to underpin the Single Market and common action with value-added at EU level, securing economies of scale, effectiveness, solidarity and passing a clear political message that the EU stands together in the face of challenges.
archive Revealed: France's massive 'Made in Europe' strategy (13.01.23)
The creation of the STEP is fully aligned with the ambitions set by Europe's partners. The United States' Inflation Reduction Act [!] will mobilise over USD 360 billion by 2032 (approximately EUR 330 billion). Japan's green transformation plans aim to raise up to JPY 20 trillion (approximately EUR 140 billion).10 India has put forward the Production Linked Incentive Scheme [!] to enhance competitiveness in sectors like solar photovoltaics and batteries. The United Kingdom, Canada, and many others have also put forward their investment plans in clean technologies. It is important for all actors to ensure that funding be designed and implemented in the < wipes tears > least distortive manner practicable. Reinforcing transparency and deliberation on industrial subsidies [!] internationally is equally key to safeguard and improve the existing—but incomplete— < wipes tears > level playing field on which the EU's and global prosperity has been built.
Always. read. the footnotes
5 Communication on a Temporary Crisis and Transition Framework for State Aid measures (OJ C 101,
17.3.2023, p. 3).
6 Regulation (EU) 2023/435 as regards REPowerEU (OJ L 63, 28.2.2023, p. 1).
7 https:/state-of-the-union.ec.europa.eu/state-union-2022_en
8 Speech of 4 December 2022, https:
9 European Council conclusions of 23 March 2023, EUCO 4/23
10 COM(2023) 62 final.
by Cat on Thu Sep 14th, 2023 at 03:39:48 PM EST
[ Parent ]
We have seen real bottlenecks along global supply chains, including because of the deliberate policies of other countries. Just think about China's export restrictions on gallium and germanium—which are essential for goods like semiconductors and solar panels. This shows why it is so important for Europe to step up on economic security.
yeah, I'm thinking. I'm thinking that the Chinese Ministry of Commerce understands, possession is nine tenths the law. Also, by exercising a human right to embargo "essential" goods, the people of China—or any other "third country"—disavow trade, rather than fulfillment of public and private labor, simply to pacify ill-mannered guests who covet that which they do not possess.  
by Cat on Sun Sep 17th, 2023 at 10:24:19 PM EST

G7 color of law
(01.04.23) anti-coercion tool inspired by former U.S. President Donald TRUMP
(17.05.23) APA glossary of worldwide organized crime motives
(02.06.23) EU raises bar for punishing countries exporting dual use tools
(21.07.23) 11th package of sanctions, enforcement, and penalties

We have seen real bottlenecks along global supply chains, including because of the deliberate ["inflation reduction"] policies of other countries. Just think about [Europe's geology, "embargoes", and] China's export restrictions on gallium and germanium - which are essential for [dual-use] goods like semiconductors[, turbines, transportation, telecommunication,] and solar panels. This shows why it is so important for Europe to step up on economic security.
euractiv | EU 'united' against economic blackmail [sic] - despite facing claims of hypocrisy, 4 Oct
We must defend ourselves against unfair practices. But equally, it is vital to keep open lines of communication and dialogue with China. Because there also are topics, where we can and have to cooperate. De-risk, not decouple - this will be my approach with the Chinese leadership at the EU-China Summit later this year.
Stoltenberg: assertive behaviour poses a challenge to our interests, our values, our security
As one of the building blocks of this new approach, EU lawmakers adopted on Tuesday (3 October) a new instrument against "economic coercion", which includes attempts by third countries to influence political decisions in the bloc. The new anti-coercion instrument was adopted with an unusually large majority of 578 votes, from the far-left to the far-right. Only 24 MEPs voted against the new instrument, while 19 abstained.

Economic coercion refers to

archive racketeering and restraint of trade (22.04.23)
attempts to influence the internal decisions of the EU or one of its member states by means of certain trade policy measures, such as tariffs[ and export] or export restrictions.

"This instrument enables rapid reaction against coercive measures, against pressure from other countries," Bernd Lange (S&D), head of the Parliament's committee for international trade and chief negotiator for the instrument, said after the vote. "While this anti-coercion tool should act as a deterrent, we will also be able to take action if necessary to defend the European Union's sovereignty," he added.
While the WTO was once hoped to ensure a global rules-based trade order as part of the so-called 'Washington Consensus', "it is absolutely clear that the Washington Consensus of 1994 is gone," Lange said during the debate. "Today we have a fragmented globalisation with very different interests, different countries that do not play by fair rules," he added.

archive latest anti-Western antics, Scholz Blown Away In Brasilia in Decolonization
However, while the EU sees itself as the righteous defender of its sovereignty against foreign coercion, its own environmental trade policies can make the EU itself appear as an economic "coercer with kid gloves impunity.

For example, measures such as its new carbon tariff (CBAM) and its anti-deforestation law are seen by other countries as interference with their own sovereignty, as they impose rules defined by the EU on other countries and punish them in case of non-compliance through tariffs[ and export] or import restrictions.

archive Implications for African countries of a carbon border adjustment mechanism
Thus, while the EU is building [NATO] muscles with a new tool against coercion by sovereignty of others, it will have to work hard at convincing third countries that it is not a "coercer" itself.
World's first carbon border tariff is launched in Europe, 1 Oct
"The Carbon Border Adjustment Mechanism will generate billions of euros in taxes for Brussels' general budget."
by Cat on Wed Oct 4th, 2023 at 09:53:17 PM EST
[ Parent ]
p 5
...The Declaration on Principles of International Law concerning Friendly Relations and Co-operation among States in accordance with the Charter of the United Nations, adopted by the General Assembly of the United Nations on 24 October 1970, states that international relations are to be conducted in accordance with the principles of sovereign equality and non intervention.That Declaration also provides, in relation to the principle concerning the duty not to intervene in matters within the domestic jurisdiction of any State, that no State may use or encourage the use of economic, political or any other type of measures to coerce another State in order to obtain from it the subordination of the exercise of its sovereign rights and to secure from it advantages of any kind, which reflects customary international law and is thus binding in the relations between third countries, on the one part, and the Union and its Member States, on the other. Moreover, rules of customary international law on State responsibility for internationally wrongful acts are reflected in the Articles on the Responsibility of States for Internationally Wrongful Acts (ARSIWA), adopted by the United Nations' International Law Commission at its fifty third session, in 2001, and taken note of by the United Nations General Assembly in Resolution 56/83. Those rules are binding in the relations between third countries, on the one part, and the Union and its Member States, on the other. ...
by Cat on Wed Oct 4th, 2023 at 10:00:18 PM EST
[ Parent ]

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