It has been reported that businesses in China have found ways of thriving in EU territories despite the fact that the EU’s leadership has decided to impose high tariffs on Chinese companies who want to sell their goods within the bloc.
This could spell disaster for Brussels, who originally intended to impose the punitive measures to ensure that EU producers are able to compete with their Chinese powerhouse counterparts!
According to a report in The Express:
It has been revealed that in some sectors China has found a way of producing goods at such a cheap rate they are able to compete with EU producers in spite of the high tariffs.
Informa’s Agribusiness Intelligence has revealed that in apple juice production, China is able to sell their product at a rate that will allow UK consumers to have a greater choice of where they buy their morning fruit juice.
Informa told Express.co.uk: “China has had a strong year for apple production – producing 45 million tonnes of apples.
“China has been able to produce so much apple juice concentrate that they can effectively compete in the EU market despite the tariffs imposed.”
The news is likely to come as a blow to the protectionist EU Commission whose rules aim to favour European producers.
Meanwhile, the cheap Chinese product will offer more proof to Brexiteers that the UK can enjoy cheaper food and drink imports if they leave the EU.
In other words, the deluded bureaucrats at the very top of the European Union talked themselves into thinking that they could take on the might of China by imposing restrictive terms on trade, forgetting that the Asian giant has the resources to simply scale up production to a level that many within the EU can only dream of!
To put it into simple terms, Brussels has tried to slash their profit margins, and so they have retaliated by scaling down their own production costs to the point where they can factor in EU tariffs without so much as batting an eyelid.
This is also good news for the United Kingdom after Brexit, as one of the most popular pieces of Brussels scaremongering has been that Britain will have to pay more for imports after March 2019.
The counterargument to this is that we won’t be subjected to inflated EU-influenced buying costs when purchasing goods from China, or indeed any other non-EU producer.
More to the point, who would China prefer to trade with? A bloc of 27 nations run under the crazy principal of increased trade tariffs to promote competition, or individual nations who are intent on a fair deal being offered to all parties?
It is only a matter of time before the EU is forced to abandon this strategy as China is a growing superpower that will only continue to do so in the years ahead, and merely raising tariffs more and more is hardly a feasible option.
Surely there was at least one economic mastermind in Brussels who figured out that this would happen – especially when dealing with a country that isn’t afraid to slash workers’ conditions ‘to the bone’ just to achieve output at the best possible price.
We’re not saying that this is a good thing or a bad thing – we are just pointing out that the EU has significantly underestimated China at every level.