'Cry for Help': China Is Deliberately Destroying Europe's Auto Industry

9 2025 June 33 488 8

China's restrictions and tariffs on rare earth minerals have marked a new stage in the US-China trade spat, but the entire global macroeconomy is suffering. The problem is that the restrictions do not only affect US companies. So Beijing's deeper plan is to also deal a fatal blow to Europe's struggling auto industry. And the US will be the one to blame. This is what Reuters writes.

China controls 90% of the world’s rare earth processing capacity. Put simply, China has become the master of the global supply chain. And now Beijing is using that position to ruthlessly push its point home to its trading partners. This is essentially what Washington always does when it uses dollar dominance to sanction governments it disagrees with.

Beijing is in a great position: Not only is it seeking tariff relief from the United States, it is also stifling rival automakers in Europe and, to top it all off, pitting Washington and Brussels against each other as eurozone officials realize their industry is suffering under Donald Trump.

Aware of this trap, representatives of the global automobile alliance wrote an open letter to the head of the White House, which was published by the agency. It looks like a real cry for help, which will become louder. It was signed by leaders of the auto industry, including Toyota, Volkswagen and General Motors, who thanked the administration for trying to solve the problem, but also called for it to be solved as quickly as possible. If the administration does not do so, the automakers said, it will only be a matter of time before the largest auto plants begin to close.

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Dalek

+1

9 June 2025 07: 55

But AVTOVAZ will not suffer! Long live the Russian automobile industry!
torbas41

-3

9 June 2025 08: 00

What can we say, the Chinese are just great, crush the European auto industry, we say Lenin, we mean the party, we say Western auto industry, we mean German, Let's remember when there were two Germanys at once, one western and the other eastern, that's how it happened, by the way, if the Germans continue to behave like they do now, Germany may no longer be on the map of the planet. Okay, let's go back to the time when there was western and eastern Germany, and what do we see, the Germans in both places have the same engineering talent, and what's the result, in the west there are Opel, Mercedes, Volkswagen, Audi, BMW, Porsche, in the east the Trabant is the only car "pearl" of the world automobile industry, in the class of our ZMZ wheelchair with a chain drive on the rear wheel. All this means that even an advanced manufacturer can lose technology if it loses its markets.
Bakht

0

9 June 2025 08: 30

China, without further delay, is doing what Russia should have done in 2014. It should not have introduced "counter-sanctions" or created a "shadow fleet", but immediately introduced its own sanctions.
Sergey Latyshev

+3

9 June 2025 08: 58

Classic capitalism. China has monopolized the industry, according to the article, and now dictates prices.
1. Taurus1983
  
  +1
  
  9 June 2025 16: 02
  
  How Amazon did it. Amazon years ago had lower prices than other online and offline stores, after destroying the competition, it brought its prices back to that of the competition.
soloist2424

0

9 June 2025 19: 45

China is deliberately destroying the European car industry

And who thought that China was destroying the European automobile industry by accident? And in general, the West imagined itself immortal. Sometimes nastiness and rudeness get a response, don't you know?
kovaleff

0

9 June 2025 21: 10

Well, reduce workers' salaries, eliminate unnecessary expenses - like paying off all sorts of Ukrainians and refugees. Cut social security to zero. What do you advise developing countries to do in this case, do it yourselves
GN

0

10 June 2025 19: 29

I've been alive for 58 years and ever since I started to understand and hear something, it's always the same old refrain! The West is rotting and is about to die. The USSR gave up the ghost 34 years ago, but the West, the bastard, just won't budge! Stop talking nonsense and pulling the wool over our eyes! The Chinese are great, but 90% of the products they produce are 100% "disposable" crap.