If I remember correctly, the last time the EU tried to sanction China, China did it back to them the EU even harder.
So much so, that the EU would not try to sanction China after that, that was round the time of that Comprehensive Agreement on Investment being an issue.
Times have changed. That is why I would say do not go overboard with the sanctions, if China decides to hit them with sanctions or whatnot.
Look at Yellen, saying to the Chinese do not hit the US with sanctions, like yesterday, she was just asking politely. I do not think the Americans can threaten China with sanctions without getting a few kicks of the sanctions boots in return back at them.
As for the point of these sanctions or tariffs will be an attempt to buttress these industries of the future, in the United States and Europe, that is very unclear at the moment what the effects will be.
At the moment, I do not believe anyone expects this to work in the short term. The lead the Chinese have in the EVs for example, not to mention 5G, is just way too wide. There is no way the West can match the Chinese EV industry or the 5G technologies and business opportunities, these next several years.
With the EV, they got to build factories to mass produce those EVs at the China price to be competitive. Yeah, right.
As for 5G, they got to build those standalone networks. Too slow.
To cut this post short, those Western tariffs and sanctions, miss the point entirely.
In the end, really unsure if the PRC will retaliate much this time.
The Chinese EV and auto industries growing at leaps and bounds due to internal sales in the China market and sales in the developing world. And not in the West. So the West wants to tariff these Chinese car exports.
What exactly is the point here, other than they are scared shitless?
I don't know. That is why I do not believe the PRC will do much in terms of retaliation in retaliation to these new Biden tariffs.
