China Opportunities for Europe
To the EU policy wonk in the street, picking sides in the US-China trade war may seem a no-brainer. After all, EU countries overall export twice the percentage of their GDP to America than to China, 2.5% to 1.3%.
But to the EU businesses whose taxes pay for wonkery, side-picking is unproductive. Even moreso, now that both the EU’s & China’s unelected officials have concluded a Comprehensive Agreement on Investment, giving Europeans unprecedented market access.
On the manufacturing side, gone are JV requirements for: conventional and new energy autos, other transport, chemicals, and healthcare equipment.
On the services side, JV strictures are lifted from cloud, real estate, and private hospital services, to list the highest-growth-potential, but not all, of the enhanced access bon bons.
“Sure, let’s go to China and get our IP & tech copied,” comes the justifiably cynical response.
To clear the jaded eye, China also promises that its SOEs will operate solely in commercial interest, that forced tech transfer is a thing of the past, and that EU companies will enjoy equal access to regulatory and administrative bodies.
“We hope that EU companies considering China aren’t too caught up in the trade war drama,” says Jimmie Jeremejev. “They should focus on the abundance of new opportunity being offered them as a result.”