I’ve said this before: these countries aren’t stupid. They know exactly what they’re doing.
Trump’s tariffs against China is curbing exports to the US, and unlike in 2008, China’s property market bursting means that it can no longer turn to massive infrastructure investment to drive economic growth like it used to, and the Internal Circulation strategy that was supposed to promote domestic consumption has ended with a whimper. The post-Covid consumption spending did not happen, and we’re actually getting deflation, which is even worse than inflation.
France knows this. It knows that China is now more dependent on export than ever before, because the surplus export goods have to go somewhere that is not America. The EU will be forced to absorb them, and France also knows that if they just let China dump all their cheap goods inside the EU, it will also be the end of their domestic industries.
With Europe in austerity since Nord Stream bombing, France has even more incentive to take maximum advantage of China’s current predicament.
These countries know exactly what they’re doing. They are all calculating to position themselves as the winners of Trump’s global tariffs.
Instead of forging a new alternative to neoliberalism, both Europe and China have chosen to become the true defender of global free trade, claiming that it is the US (Trump) that has violated the mythical sanctity of free trade agreement. And so, a mercantilistic fight it is.
And while trying to screw one another up, they also secretly hope to get a good deal from Trump behind each other’s back so they can be the winner of the race. This is the true goal of Trump’s global tariffs - to unleash a dirty mercantilist war while it hides itself behind tariffs so as to reap the harvest from the fallout, with the ultimate aim of controlling and reshaping the global supply chain to the interest of the declining empire. It was never about re-industrializing America.
All the “haha European leaders are so stupid, they’re just vassals of the US” takes that we often see on online anti-imperialist spaces aren’t grounded in material reality, as if building Nord Stream itself wasn’t an act of defiance to assert their energy independence from the US. They are only “stupid” in the sense that they are guided by the ideological indoctrination of neoliberalism. Once you understand this, Europe’s and China’s actions will make sense.