onsdag 14. august 2019

Europe Will Be Next To “Go Trump” On China If This Keeps Up

They’ve almost taken over the European bicycle manufacturing industry. They’re nearly banned from selling random items like aluminum radiators and coated fine paper due to anti-dumping duties. How long before the Chinese just buy Italian coffee house Lavazza? I give it ten years, max.

Thanks to the trade war, China manufacturers are reorienting some of their sales towards Europe. Exporters in China are now looking to the European market as the key market to replace the U.S. Firms have lowered prices and ramped up production of EU-bound goods, one source who was not talking on the record told me.

In conjunction with moves by individual Chinese companies, yuan weakness versus the euro is making Chinese products cheaper than their main competition in South Korea, Taiwan, Singapore and Japan. China exports to Europe are gaining, while the aforementioned foursome is watching their exports to Europe collapse.