Europe is not in direct competition with china. China shouldn't retaliate the same way. Unlike USA which has more people. Even with a EU, but european individual nations are smaller and could use the human resources that china provide. And it shows that europe has a lower tariff rate than the USA. Germany is willing to make cars under german brand and import it back to germany at 20% vs Chinese brand at 33%. China can take advantage of this. This way china gets to build things in its factory. Europe can't control what is not within its border which means China can also sell chinese cars cheaply to developing nations for natural resources putting chinese companies to work. Natural resources are cheaper than made products. Which means china can acquire the natural resources like oil and steel to power its industries. Through trade europe ended with a colonial empire, china can enrich itself through trade. Xi JIng Ping is right china should be open to foreign businesses that fuel china's factory even if china pays a tariff to europe. Selling cars and products to middle east, sell to africa for its uranium and build factory in mexico to sell cars to latin america. This is how the west began to be rich through trades. This is what wealth of nation taught me. Of course china won't be able to colonize and use military to confiscate the goods, but chinese can use its soft power to enrich the nation.
Germany brand cars imported from china is only 20%
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