Continued part II

Unfair competition

The Chinese government pumps billions into its own industry and keeps China's currency, the yuan, artificially low-rated. This allows Chinese companies to dump their products on the European market for very low prices. "Unfair competition", says Europe. Last month, the heads of state of the 27 EU countries met to discuss how to intervene harder. There is no concrete plan yet.

In October, European Commissioner Maros Sefcovic will go from Trade to China to talk about restoring the balance. If this visit comes to nothing, the European Union should not shy away from strong measures, writes the WRR. "Europe, for example, similar to what Trump does, can introduce tariffs on Chinese products," Sheikh says. "Or develop a system whereby Chinese producers must prove that their products were produced without unfair state support."

The researcher acknowledges that these opinions go against the Dutch tradition of free trade, based on the rules of the World Trade Organization. "But if other big players don't follow those rules, you also have to adjust your own strategy."

Trade war?

Won't China hit back much harder and will Europe be able to cope with that? "The point is right that if we don't intervene now, it's too late. Now China is still dependent on us in some areas. And Europe is still a very important sales market. If we continue to postpone measures, more and more sectors in Europe will disappear. Yes, these types of measures will hurt at first, but we argue that doing nothing is ultimately more painful. Moreover, China itself also has an interest in ensuring that a trade war does not escalate."

The WRR issues this advice to the Dutch government, not to the European Commission. In The Hague, Sheikh sees "no enormous resistance". "The realization is starting to drop that it can go very fast."

But the Netherlands will only want to take such measures if it is organized at European level, Sheikh thinks. "This will call for more European cooperation, but I see movement there too. And European countries must remember that they have great negotiating power."

[Opinion] by China correspondent Laura van Megen

"Understanding is sorely needed. Europe is a plaything in one race to the bottom between China and the US. Europe has to press heavy buttons, because doing nothing is more expensive. China is a bigger problem for our industry than America.

The recommendations such as general import duties for products from China would be bad news for China. But in the short term this is going to hurt us a lot: raw materials, rare earth metals, steel, semi-products and computer chips from China can be put on the export control list and European companies can be cut off from the Chinese market."

EU leaders want to tackle China harder, but do they dare? Brussels wants to save industry with 'made in Europe' Will we soon be less dependent on American tech? If it were up to the EU, yes

The US would like to be as compitive as China with its strategic subsidies but is a actually a lame duck trying to protect its uncompetitive companies with tarifs. The exact contrary of what China is doing.

Both sides are bleeding their work force dry, one for profit (US) and one for global indluence (China).