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So Europe went from suggesting decoupling from China to de-risking and now this?
This does not negate the tariffs or the decoupling from a building relationship with China, it halts a dependency on China without significant sacrifice from the EU.
It's the tactic that makes most sense right now.
And it sounds like literally what China did to Western companies wanting to set up shop in China. Seems like turnabout is fair play.
It would be the same if China has already caught up enough to have some know-how to transfer. Has it?
I doubt Germany (or anywhere in Western Europe) needs knowledge transfer on technology but if China set up a factory in the EU, it’d probably be in an Eastern European country that could probably use a little.
In certain areas it has practical know-how we don't. CATL is a good example. Not just their sodium-ion batteries, but their production processes in general. We might be able to readily reproduce their battery chemistries in a lab but that's not the same as having an industrial production process and the experience from ironing out all the kinks that feed back into basic research. With a joint venture, you can tap into that stuff.
If we had invested as heavily in the tech as they did we probably would be ahead right now but we didn't so we aren't. If they had invested as much into fusion as we did -- oh wait they did. They're behind, Max Planck is currently looking into the details of building a commercially viable reactor in the early 2030s, they're confident to have the plasma physics down now it's about stuff like "do we use a cheap material for the diverters and replace them often or do we develop/use something fancy", that is, about actual operational costs.
You can’t decouple from 15% of the world’s population/one of the most powerful economies in the world. That was always chest pounding and frankly it was unproductive.
The “fortress” mentality described in the article does not work in the long run unless you are dealing with smaller (and frankly, poorer) countries. And even then they can prove resilient, especially if you can’t get enough other countries on board.
Yes. Europe is falling behind and willing to try anything. Bad times ahead.