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Europe in crossfire of US-China economic rivalry
France 24 ^

Posted on 02/04/2023 8:44:02 AM PST by FarCenter

Paris (AFP) – The economic confrontation between the United States and China has put Europe in the crossfire, with Washington's plan to boost green industries threatening to cause collateral damage to a key ally.

The United States has adopted the Inflation Reduction Act (IRA), which contains $370 billion in sweeping investments, subsidies and tax cuts to reduce greenhouse gas emissions, making it the largest-ever US programme to combat climate change.

But some of its provisions have been criticised by European Union officials as discriminatory against European carmakers, with some saying it smacks of protectionism.

French Economy Minister Bruno Le Maire and his German counterpart Robert Habeck travel to Washington to meet Treasury Secretary Janet Yellen on Tuesday and try to resolve the impasse.

EU leaders will hold a summit later in the week that aims to begin crafting a response to the US measures.

The IRA aims to bolster green industries that will be key to the future economy, such as the manufacturing of batteries and solar panels.

US firms will be able to receive subsidies similar to those their Chinese rivals receive, on the condition that they manufacture domestically.

"One of the key objectives of the IRA is to exclude Chinese suppliers from clean energy supply chains," said Tobias Gehrke, a fellow at the European Council on Foreign Relations.

He said the priority was reducing US dependence on Chinese imports.

China dominates the electric vehicle sector, with 78 percent of the global production of battery cells and three-quarters of the big plants to manufacture the lithium-ion batteries they use, according to a study by the Washington-based Brookings Institution.

(Excerpt) Read more at france24.com ...


TOPICS: News/Current Events
KEYWORDS: bidenadm; economy; inflationra

1 posted on 02/04/2023 8:44:02 AM PST by FarCenter
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To: FarCenter

Wow. They are just now figuring this out?


2 posted on 02/04/2023 8:49:01 AM PST by packagingguy
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To: packagingguy

“Wow. They are just now figuring this out?”

I suspect that the European governments feel like TOTAL IDIOTS getting played by us over Ukraine, to the point of acting dumb when their main source of fuel was blown up by us.

I suspect they’re not about to do the same for China - if the Neocons also need a war with China, they’ll have to go it alone.


3 posted on 02/04/2023 8:52:29 AM PST by BobL
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To: FarCenter

Yeah, Ukraine is winding down with a NATO loss so now it’s time to go to war with China.


4 posted on 02/04/2023 9:25:09 AM PST by struggle
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To: FarCenter

Customs data reveals China is fueling Russia’s war in Ukraine
https://nypost.com/2023/02/04/china-has-been-fueling-russias-war-in-ukraine-customs-data-shows/


5 posted on 02/04/2023 1:57:30 PM PST by familyop ("For they that sleep with dogs, shall rise with fleas" (John Webster, "The White Devil" 1612).)
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