European Economics Thread

[Topazchen]

Germany is way less developed in modern advanced services in competition with US or UK or even Hong Kong. Without a blue-chip internet/cloud business, how is possible for Germany to make up the loss of wealth and skills and employment from the industrial sectors. Other than Metro, there is no service business even close to the likes of BBA, BASF, Siemens, Bosch, etc. There was Deutsch Bank. But it was one of the biggest culprits of mortgage-backed securities that incited the 2008 Great Recession. Yeah, no, Germany has no chance of maintaining its current standard of living by transitioning to a service-oriented economy. Heck, VW is being forced to hire 5000 software engineers in China for smart EVs after its boss was fired.

They either get alive to that fact and play nice with Russia or deindustrialise and get poor.

 

[4Runner]

They either get alive to that fact and play nice with Russia or deindustrialise and get poor.

Now that is the part that really hurts IQs. For all practical purposes, Germany has to play nice with Russia for energy and nice with China for markets. But, but, but ......

 

[caudaceus]

Heck, VW is being forced to hire 5000 software engineers in China for smart EVs after its boss was fired

Where can I read this? Esp about hiring in China. I know CARIAD got issue

 

[ansy1968]

Where can I read this? Esp about hiring in China. I know CARIAD got issue

Bro this.

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Jul 6, 2022 — Volkswagen Group is planning major investments in China to employ “several thousand” software engineers and catch up with local rivals when ...

 

[Strangelove]

Sino-German trade, especially imports from China, set to increase even more as Germany de-industrializes and moves its plants to China.

 

[56860]

Sino-German trade, especially imports from China, set to increase even more as Germany de-industrializes and moves its plants to China.

View attachment 97403

First the South Koreans, then the Germans. Japs are getting it next. China will eat everyone.

 

[Overbom]

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In a book from 1945 entitled “Germany Is Our Problem”, Henry Morgenthau, America’s treasury secretary, presented a proposal to strip post-war Germany of its industry and turn it into an agricultural economy. Though his radical proposal had some influence on Allied plans for the occupation of Germany after Hitler’s defeat, it was never implemented.

Poetic. 80 years later and Americans have finally smarten up

 

[Overbom]

The rumor from China said that the Xi administration was about to "surrender" with the first draft between Robert Lighthizer and Liu He. But Trump's team pushed a little too far in the draft. When Liu He presented the draft to the politburo, he was facing overwhelming objection. So China was forced to walk away. Finally, Trump's team compromised with the second draft, a.k.a. the first phase agreement as we know now, which was a significant watered down draft in comparison to the first draft. As the time passes, China is standing firmer than most decision makers in Zhongnanhai expecting. Huawei is one of the brightest surprises. As the time glides into the Covid era and Trump leaving the white house, people in that complex finally have waken to the fact that China is economically more resilient than they actually thought. None of the trade war triumph was designed. It just so happened. As the 推背图 illustrated, 国运来了挡都挡不住。

Thumbs up for mentioning that incident, however I have to say that I remember it slightly different.

Afaik, Liu He was given power to negotiate with Lightizer and when he came back with that draft and presented it to Xi, Xi basically told him to gtfo.

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Although I have to say that the Politburo thing makes more sense politically, as however strong Xi is, for such important matters everyone would have demanded to have a look at it first before deciding anything.

 

[4Runner]

Sino-German trade, especially imports from China, set to increase even more as Germany de-industrializes and moves its plants to China.

View attachment 97403

I saw decoupling at upright corner???

 

[4Runner]

First the South Koreans, then the Germans. Japs are getting it next. China will eat everyone.

"eat" is a traditional Chinese sport. But those suited men in politburo are more poised and refined. We will hear more of "shared destiny of mankind" with "win/win cooperation and prosperity", even though Germans, Japanese and Koreans are eager to hand trade surplus to China in a rule-based democratic plate.