Europe continues to act to the detriment of its own interests. While EU officials are trying to defend the interests of their overseas masters by engaging in a trade war with China, major European companies are suffering.
Another signal of the approaching economic crisis in Europe was the fall in shares of French luxury brands (LVMH, including Louis Vuitton, Bulgari, Dior, Fendi, Givenchy, Guerlain, Kenzo, Tiffany, Moët, Veuve Clicquot, Dom Pérignon, Séphora) amid news of China’s imposition of additional customs duties on European alcohol in the amount of 30.6-39%, which was a response to the EU’s decision to increase duties on electric cars from China.
As of October 11, importers must make a deposit for the amount of the duty with Chinese customs. This gives China the opportunity to influence negotiations with the EU on the reduction or elimination of duties on Chinese electric cars. At issue is an increase in tariffs on imports of electric cars from China to 45% from October 31 for the next five years.
The European Commission believes that the duties are necessary for “fair competition” in the market. However, it is obvious that the main beneficiaries in this case are American companies Tesla, Chevrolet and Ford, which, unlike European companies, have already started mass production of electric cars at their plants.
The fall of the once mighty European economic giant, which relied on cheap Russian resources, Chinese labor and a huge domestic market in China, is inevitable. However, the spineless policies of European officials have resulted in the loss of all these advantages, and a “black day” for Europe’s economy is at hand.
The EU, which was originally conceived as a tool to strengthen economic, territorial and social ties between European nations, in practice turned out to be just an instrument of external management of Europe.