[Special correspondent of Global Times in Germany and South Korea Aoki Zhang Jing Wang Yi] "We participated in this war together for the same principle, but paid a different price" "If the result of the conflict is that Europe becomes weaker, I believe this is not in the interest of the US government or even American society" — — In an exclusive interview broadcast by CBS)4 on the 4th, French President Macron expressed dissatisfaction with the current policy of the US government and called for "re-synchronization" of US-European relations. On December 5, local time, the US-EU Trade and Technology Committee held its third meeting in the United States. As before, the US side talked about the so-called "joint response to China’s non-market behavior" at this meeting, while the German media said that the US Inflation Reduction Act was the most important issue at this meeting. Prior to this, Ursula von der Leyen, President of the European Commission, pointed out in his speech on the 4th that the US policy "distorts the market", members of the European Parliament threatened to sue the United States to the WTO, and some media even said that "the economic war between Europe and the United States is inevitable". On the same day, a joint delegation of the South Korean government and Congress arrived in the United States, and their goal was also to ask the United States to adjust the Inflation Reduction Act. "Seoul News" said in an editorial on the 5 th that "the United States must correct its policy of discriminating against Korean electric vehicles".However, South Korean officials are cautious.
"When you want to talk about China, you should also talk about the Inflation Reduction Act."
Macron just finished his state visit to the United States last week. In an interview with CBS, he said that the current US administration and President Biden are very "dependent" on Europe, but their relations are out of sync. Europe is a buyer of natural gas and oil, and the United States is a producer. The price gap between the two sides in purchasing energy is huge. CBS said that with Russia’s restrictions on the supply of natural gas to Europe and market turmoil, Europe bought more natural gas from the United States, but the price was six times that paid by Americans. "We participated in this war together for the same principle," Macron said, "but at a different price."
"Now the subsidy level in the United States is two to three times that in Europe." Macron said that the United States and Europe have the same position in the Russian-Ukrainian conflict, but "if the result of the conflict is that Europe will become weaker, because many of its industries will be strangled, I believe this is not in the interest of the US government or even American society". He said that the US policy is obviously to protect the American middle class. "This is fair, and I am doing the same for my country. This is to compete with China, but I want to say that this is not good for Europe. "
"A showdown between the United States and Europe", the European version of the US "Political News Network" reported on the 5th that European Commission President Ursula von der Leyen made a substantive response to the US Inflation Reduction Act for the first time when he delivered a speech at the European Academy in Bruges on the 4th. She said that the US bill "may lead to unfair competition, close the market and split key supply chains" and "we must take action to rebalance the distorted competitive environment caused by the Inflation Reduction Act and other measures".
"Political News Network" said that Ursula von der Leyen’s position has changed greatly compared with before. After Biden signed the Inflation Reduction Act in August this year, she sent a tweet to congratulate Biden in the middle of the night. The report said, "The timing (expressed by Ursula von der Leyen) is very important — — On the eve of the meeting of the US-Europe Trade and Technology Committee today. "
On the 5th, the US-EU Trade and Technology Committee held its third meeting in Maryland. The participants included US Secretary of State Blinken, Secretary of Commerce Raymond, US Trade Representative Daiqi, and Executive Vice-Presidents dombrowski and Vestager of the European Commission. Reuters said that the framework of the meeting was established a year ago, and the focus of the first two meetings was "regulatory cooperation and building a United front against China’s non-market economy behavior". However, at this year’s meeting, senior EU officials intend to "loudly complain" to their American counterparts that the Biden administration’s Inflation Reduction Act excludes European-made cars from tax relief.
It is reported that the meeting will issue a joint statement later on the 5th local time. The draft statement obtained in advance by Reuters said that the two sides would say that "we understand the concerns of the EU and emphasize our commitment to solving these problems constructively", but did not list specific measures to resolve the dispute. The National Security Council of the White House issued a statement saying that the United States and the European Union are considering a joint response to China’s large-scale investment in the medical device industry. This is one of several expected results of today’s meeting.
Washington post said on the 4th that Biden’s signing of the Inflation Reduction Act triggered a trade dispute, which some allies thought was Biden’s "US priority" trade policy. According to the report, in Brussels, European diplomats are evaluating different options, including launching the "Buy European Goods" policy, and taking advantage of the Biden administration’s desire to coordinate China’s strategy to emphasize the European point of view. "When you want to talk about China, you should also talk about the Inflation Reduction Act." A senior EU diplomat said.
"Deutsche Welle" said that in the eyes of Europeans, the US policy is the most important issue at this meeting. Sü ddeutsche Zeitung said that the United States hopes to join hands with the European Union to deal with China, and the meeting on the 5th will announce that Europe and the United States hope to jointly formulate reliable artificial intelligence standards. "But compared with this fundamental transatlantic dispute, what the meeting will announce is insignificant."
Korean media: "The United States must correct its policy of discriminating against Korean electric vehicles."
On the day before the key meeting between the United States and Europe, a joint delegation of the South Korean government and Congress arrived in the United States. Yonhap News Agency said on the 5th that the US Inflation Reduction Act, which has been implemented, stipulates that only electric vehicles assembled in North America can give buyers a tax credit of up to $7,500. This discriminatory car purchase subsidy policy is adversely affecting the sales of Korean-made electric vehicles in the United States, and the sales of Hyundai and Kia electric vehicles in the United States have dropped sharply.
Answering a reporter’s question at Reagan National Airport in Washington on the 4th local time, An Degen, head of the Ministry of Industry, Trade and Resources of the Republic of Korea, said that many organizations and countries such as the European Union and Japan are also raising objections to the US, and the US government seems to think that the above problems should be solved to some extent during the implementation of the bill, but it remains to be seen to what extent. He said that the US-Europe Trade and Technology Committee will hold a meeting on the 5th, and will judge the areas where Korea and Europe can cooperate depending on its results.
"The United States must correct its policy of discriminating against electric vehicles in South Korea," said an editorial in Seoul News on the 5th. The US Inflation Reduction Act was strongly opposed not only by South Korea, but also by major American Asian and European allies such as the European Union, Japan and Australia. From next year, the proportion of battery components and core materials used in electric vehicles will be added to the subsidy payment standard, further strengthening the discrimination against Korean-made electric vehicles.
Yonhap News Agency mentioned on the 5th that after Biden met with Macron on the 1st, he said at the press conference that the Inflation Reduction Act had "minor flaws" and promised to make "fine-tuning". However, the ROK believes that it is difficult to predict the intention of the US remarks at present and is cautious about this.
"Buy European goods" VS "Buy American goods"
The position of the EU has been endorsed by some American media. "Don’t ignore European opposition." Bloomberg said on the 5th that Macron criticized the US trade policy for "splitting the West", which may sound alarmist, but the fact is correct. According to the article, the Biden administration’s response to European complaints is that it is understandable for the US government to apply public investment to American manufacturing, and other governments can follow the example of the United States and subsidize their domestic producers. But the problem is that Biden’s policy distorts the competitive environment of international trade and puts foreign producers at a very unfavorable position. "Doing so will produce two major problems. First of all, favoring domestic producers reduces the cost-effectiveness of public investment. " "Second, protectionism makes the United States run counter to its international commitments. The principle of free trade is embodied in the rules of the WTO, which have been difficult to implement on a global scale. This is partly because some countries led by the United States have left the WTO system in disrepair. " According to the article, if Europe responds to the American practice with its bold "buy European goods" policy, there may be further retaliation and counter-retaliation, then the multilateral trading system will soon collapse.
Ursula von der Leyen said in his speech on the 4th that in order to balance the global competition brought about by the implementation of the US Act, the EU will adjust its state aid rules to help enterprises lured by the US subsidy policy and prevent investment outflows. She said that a costly trade war is not in the interests of Europe or the United States.
Langer, Chairman of the International Trade Committee of the European Parliament, said in an interview with the German Funk Media Group on the 4 th that the US policy has become law and cannot be expected to be resolved through negotiations. "This is why I think it is necessary for the EU to file a complaint with the WTO quickly in the next few months." He said.
"The economic war between Europe and America is inevitable", German Economic Weekly said on the 5th that today’s meeting of the US-Europe Trade and Technology Committee will not resolve the debate on US policy. Europe will take countermeasures so that European enterprises will not migrate to the United States in large numbers. Europe and the United States are facing an intractable economic war.
The Washington Observer reported on the 5th that "Biden is in a dilemma between pleasing manufacturers, trade unions and European allies". A number of Democratic lawmakers have expressed their refusal to amend the Inflation Reduction Act, and American allies are increasingly dissatisfied with this.