Trade wars will force more of these kinds of decisions... Cheap stuff to buy vs. employed natives. My gut says to take the options that protect the local tax base, but my gut also says people don't want to pay any money for such protection.
The problem is that if the local tax base needs protecting, it is doomed long term anyway.
Take a look at the (no longer that big) auto makers. Decades of protectionism has just lead to companies producing shit cars nobody wants to buy. Canada dumps money into GM, Ford, and Stellantis and they produce a minority of the cars made in Canada now.
Wasn't referring to any particular industry. Pharmaceuticals, tech, ... China is big enough to make anything. But aside from food, how will other countries pay for stuff?
Companies from countries with more than 40% global market share in a given sector could be required to form joint ventures with European partners and transfer technology. At least half of jobs in such projects would also need to go to EU workers.
China has criticised the measures as discriminatory...
Do EU companies face similar restrictions when doing business in China?
Trade wars will force more of these kinds of decisions... Cheap stuff to buy vs. employed natives. My gut says to take the options that protect the local tax base, but my gut also says people don't want to pay any money for such protection.
The problem is that if the local tax base needs protecting, it is doomed long term anyway.
Take a look at the (no longer that big) auto makers. Decades of protectionism has just lead to companies producing shit cars nobody wants to buy. Canada dumps money into GM, Ford, and Stellantis and they produce a minority of the cars made in Canada now.
Wasn't referring to any particular industry. Pharmaceuticals, tech, ... China is big enough to make anything. But aside from food, how will other countries pay for stuff?