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Newark

"China will strike Europe": the United States began to finish globalization

The flagship of the American business press Wall Street Journal published a shocking insider from Beijing: according to information obtained from some Chinese sources, the PRC reportedly plans to punish European companies for sanctions against Huawei, which entered the US and the UK.

Estimated (at least, according to the American journalists) the logic of retaliation as follows. States actively put pressure on their European and British partners, as well as on all the countries that are somehow vulnerable to American blackmail, to force them to abandon production of the Chinese company Huawei, which unleashed the real diplomatic, economic and spy war. Behind bars in Canada was one of the senior managers of Huawei (which the US accused of crimes against us national interests), and the UK government has cancelled the previous decision, which gave the Chinese company an opportunity to play a key role in the development of 5G networks in the United Kingdom. "On the verge" of sanctions of a similar nature hold the EU countries, Germany in particular. The most important element of the "beliefs" of the Europeans in the desirability of the introduction of (often very expensive and always very toxic with the image point of view) sanctions that harm the business and infrastructure, is the presence of European companies that the United States are better and whose products can also be used in 5G networks. These companies — Nokia and Ericsson.

The Wall Street Journal writes: "China may retaliate by Nokia and Ericsson, if the EU going to ban Huawei. The Ministry of Commerce of China considers export restrictions on the products of Nokia and Ericsson made in China".

The sources indicate that the idea of "deny Nokia and Ericsson to send the products manufactured in China to other countries" is seen as some extreme measures in case the EU will implement very strict restrictions on Huawei and other Chinese companies in the European market.

If we consider such a scenario, the EU and other countries, which can now abandon the Chinese equipment, under US pressure, may occur an unexpected problem of inability to replace him, despite the theoretical availability of appropriate technologies. Of course, to move production from the "world factory", that is, from China, in some other country, but again, this involves additional costs and have to spend not just tens of billions of euros, but still quite a lot of time, that is, in this scenario, those who succumb to Washington's pressure, be damned to the technological and infrastructural gap in an era when the 5G network becoming an important element of economic development.

You don't even have to guess what Wall Street Journal published this stuffing. Intention to discredit China is evident in all of the informational campaign against all forms of economic (or cultural) presence of Chinese structures in Europe, and indeed around the world.

Washington, and it is absolutely clear from the actions undertaken by the administration of Donald trump, is trying to get off my chest is it "industrial heart", that is, all those enterprises that provide a significant portion of tax revenues, jobs and export revenue, the main competitor of the USA on the world stage. The complexity of the procedure (in addition to Chinese resistance) is that the development of Chinese industrial production and export capacity is the result of Western investments that were made in China for several decades from the time when the US wanted to use China as a counterweight to the weakening of the Soviet Union.

Over the decades, American and European companies, lured by cheap labour, maximum the favor of the state and very soft environmental regulation, have invested in production capacity of China hundreds of billions of dollars, and now the White house is trying to get American and European companies, in fact, give up on any hope of these investments to discourage (or to use them in the future), and to assume the costs to relocate all of that production capacity.

There is hardly enough companies that would want to do voluntarily, and with them trying to work "carrot and stick", and in the form of a whip may apply including information designed to scare with the prospect of actual expropriation of Chinese assets or any Chinese sanctions.

Official Beijing understands this and tries to respond quickly to such media attack. At the official level, the response to the insider from the Wall Street Journal came through a briefing by the foreign Ministry and foreign policy of the state newspaper Global Times.

"China on Tuesday denied a report by the Wall Street Journal, which said that he is considering retaliation against the two European Telecom companies — Nokia and Ericsson — as "fake news" (fake news) to undermine the good relations between China and the EU, saying that China's vast market will be opened to European companies. Retaliatory action against the Swedish company Ericsson and Finnish company Nokia is not only had relations to the growing tensions between China and the so-called Five Eyes Alliance, headed by Huawei, but also contrary to the policy of opening China, said Chinese officials and industry insiders".

Paradoxically, the chief supporter of the planetary deglobalization today became the United States, that is just the same country that built the current shape of the global economy. It is unlikely that this policy of de-globalization will change even if elected Joe Biden as President, the more that headquarters Biden has already moved in its programme some elements of the program of "economic nationalism" of Donald trump. Almost inevitably the world will be divided into "trading blocs", and the main trend of economic policy will be protectionism in all its forms. Russia in this context is well-positioned: we can provide ourselves security, food and energy, while food and energy prices as well as services in the field of security are always in demand on the world market, regardless of any "trading blocs" it will be divided. And willing to sell Russia the technologies that we will, why it is needed, is always there, and it is a great advantage of our country in the coming decades.