The USA close, the China opens: if Donald Trump impose duties commercial to “make America great again”, XI Jinping focus on Ftz (Free Trade Zone) without duties to attract foreign capital.
One of the symbols of this opening is Linganga new frank zone near Shanghai, as a symbol of its economic opening: zero duties, incentives tax for foreign investments, simplifications customs and industrial High-tech industrial hubs.
The free trade zones of Lingang
China tries to strengthen relations with Europe, taking advantage of the transatlantic frost, and is preparing to sign new economic agreements with the countries of Southeast Asia. The goal is clear: to respond to US protectionism with renewed Chinese globalization. Although Italy has retired from the Silk Road, Beijing continues to court the companies of the Bel Paese.
Lingang is part of a net of free trade Chinese zones born to encourage international trade and attract advanced technologies and foreign talents. And it seems to work: Tesla He built here one of his most important Gigafactory, with a construction started in 2018. But Tesla is one of the 75,000 companies A total foreign capital landed in the area. Stellantis It will create a vehicle recycling center e Venchi It will build an hub for the Asia-Pacific market.
Washingtonwho with the duties believed he played the winning point in the world economy match, reacts negatively to the Chinese gimmick: the Treasury Secretary Scott Beesent said that an approach to China would be for Europe “how to cut the throat”.
The Chinese FTZ strategy began along the Huangpu river in 2013 with the first Franca area, to which in 2017 seven and more were added. And the impression is that others will arrive.
In the upside -down world the US, home of liberalism, close. China, on the other hand, which in its history has known a series of closures to the West, today opens the doors more than ever.
Opening of China towards Southeast Asia
But we are currently only at the beginning: XI Jinping will visit Vietnam, Malaysia and Cambodia between 14 and 18 April. The goal is to strengthen economic integration with neighbors. Only for Vietnam, the signature of about 40 economic agreements is expected.
In the meantime, dialogues have been started with theEuropean Union also on theelectric: The EU has launched a maxi rescue plan of the automotive sector which has its nucleus in the push of battery vehicles, respecting the decarbonisation objectives. But, at the same time, the old continent does not seem to be able to produce enough batteries. From here, dialogue with China.
China’s response to US duty
The strategy of further approach to the Europe of the People’s Republic of China is part of the response to the escalation triggered by the USA, which suspended the duties for 90 days for everyone, except for Beijing. Indeed, against China, the US rates have been increased to 145%. Xi Jinping replied 125% duties on US goods. Then the hand stretched to Europe:
“Beijing and the European Union should take on their international responsibilities, safeguard together the economic globalization and the international entrepreneurial environment and resist together with any unilateral coercion”.
