 China and Politics
Don't finish a book without taking a look at the political context, even if it's only about automotive technology. In economic policy, the topic of this book seems to play the leading role, or should we say
'security policy'?
Yes, the problems seem to stem from a sense of security. Another issue between the U.S. and China, but it could also become one for Europe. Should we call this the removal of Chinese
semiconductor technology from as many of the goods exported from there as possible?
The most ardent proponents of these restrictions seem to be members of both chambers of the U.S. Congress, who want to ban absolutely everything, not just products labeled #Made in China', but also those that
might contain Chinese components. And the Democrats in these chambers could become even more powerful as a result of the elections at the end of 2026.
From there, every single chip in a household appliance is suspected of acting as a spy for China, which makes one wonder what important information it could possibly report 'back home'. It is probably more of a
combination of security and economic interests.
Direct trade between China and the U.S. has dropped significantly, but what about Chinese chips that are imported indirectly through other countries? Perhaps that is also why relations between the U.S., Canada and
Mexico are so tense.
The immediate consequence is that any company that wants to sell products in the U.S. must, in practice, prove that it is independent of Chinese hardware and, above all, software.
Strangely enough, companies that manufacture in the U.S. are more successful in that.
There it is again, the "America First" mentality. If the issue involves security policy while also safeguarding our own interests, and we consider the official justification to be a pretext or are unable to
fully understand it, the situation is different when it comes to other reasons.
This involves the delivery of Chinese goods for our infrastructure, cranes for seaports or even just city buses, because software can also be shut down, even at the push of a button and from a great distance, which is
worse in the case of cranes than it is for buses.
We may well ask ourselves again what benefit there is for the party that switches off, but once again a dependency arises - one that we have been painfully learning how to break free from since the war in Ukraine. It could
be exploited.
Does China still intend to invade Taiwan, possibly at great cost to itself, or has a plan been in place for some time to weaken the country economically and make it more susceptible to a takeover? Why has China
cut off the world's access to rare earth elements, even though it possesses only a portion of them?
Could it be that Mercedes is now protected solely because of its two plants in the U.S., despite having nearly 20 percent Chinese ownership? If that is the case, then the door is wide open for rising
unemployment in Germany and Europe.
China produces twice as many cars as its domestic market can absorb. German companies are also making financial investments there and producing vehicles that could
compete with those manufactured here.
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