Electric vehicles and technology wars As much as the Chinese government has been able to handle the economic situation within its borders, there are
Contents
Electric vehicles and technology wars
As much as the Chinese government has been able to handle the economic situation within its borders, there are the problems internationally posed by its dealings with Russia. While China continues to be a major player in the country’s economic affairs, it will face five sets of challenges including:
1. Another rivalry emerges with the USA
The most obvious realization on the part of Beijing after the January swearing-in of Donald Trump will be the resumption of a highly aggressive U.S. policy stance. Trump has already warned China and other countries with additional 60 percent tariff threats, which serve an unmistakable signal that the trade war is on course with no end in sight.
The troubling relationship with the United States is a major headache for China. But it is really not that Beijing is unprepared for it. It had learned lessons from the last U.S. trade war. This, one can see, is that Chinese companies such as Huawei have tried to reduce their reliance on U.S. markets and technologies by branching into other sectors.
In retaliation, China stocks another measure to retaliate by banning rare earth minerals from being exported to the U.S. This means Beijing is in a much stronger position today to conduct a trade war than it was back in 2017.
2. The global technology race
While tariffs may take the upper hand in any way in commerce, Taipei’s resisting the technology race would provide some challenge for the United States. Technology was becoming one of the most decisive factors in China’s strategizing to achieve full employment and production in the sector with exports.
Equally restricting this sector is a priority in America as we have evidence of restricting China from accessing semiconductor technology. This has become one aspect of the new war. Besides mastering key technologies, it is another battle of setting standards for such technology.
This draws from something called the ‘Beijing Effect’ which refers to be China’s effort to set standards for digital infrastructure in a similar vein to how the European Union has set standards for data management and privacy through its General Data Protection Regulation law. This type of move could become a real threat to much of the international community in the technology arena.
Related: Plug-in Hybrid Electric Vehicles: 7 Things You Need to Know
3. European Union Tariffs
The trade dispute between China and Europe is also too complicated, which involved retaliation against a number of tariff measures. For instance, Beijing levied an import tariff on French brandy as an answer to the European Union’s limit on imports of Chinese electric vehicles sold in member states.
These tariffs are coming at a time when China is entering into technologies which had belonged only to others. That is a trade war against the European Union, which would give the head ache for Beijing, as well as the hard talk going on about the increased NATO presence in Asia. Especially if it leads to greater alignment between Brussels and Washington. But possibly that has benefits for China because of Trump’s established hostility towards the European Union-once again, because it works for an EU bloc that seeks other partners.
4. Alliance with Russia
Superficially, Russia became increasingly important for China in terms of natural resources and markets, while for Moscow China is an important source of economic cooperation. However, it adversely reflects on China also in the eyes of European states. Some have begun referring to Beijing as an enabler in Russia’s war in Ukraine The same way, the Russian invasion and war in Ukraine could serve as a distraction for Beijing to draw America’s focus away from China.
A successful Trump’s proposed peace plan for the Ukraine war could set the stage for the US to refocus on China. Such resolution of the issue could also take off the reconciliation track between Washington and Moscow, which will be a loss for Beijing.
Related: Cost-effective EVs Electric Vehicles Under $40,000
5. Conflicts in the Middle East
One of the aspects that are worrying China quite a bit is the instability of the Middle East. Its value to China is its resources and markets, much the same way as Russia, which was evidenced by the Zhuhai Air Show where countries in the region were major consumers of Chinese weaponry. Another concerning aspect to China is an impending territorial conflict that could occur between Iran and Israel, the primary oil provider to China.
Complete interruption of supplies due to armed conflict might lead one to create more problems for Beijing. The revival of civil war in Syria might fuel more problems. Chinese Uyghurs (a mainly Muslim ethnic group) have taken the field among the forces which overthrew President Bashar al-Assad-most noticeably as part of the Turkestan Islamic Party.
Some members of the TIP threatened to launch a prolonged war with weapons acquired in Syria for one independent state in China’s Xinjiang region, where people with unwillingness to become Chinese citizens comprise the Uighurs. In just a few years, Xi Jinping’s forces have rounded up nearly one million of the Uyghurs, confined them in concentration camps, and exposed them to a policy of re-education and stringent surveillance. The whole world criticizes China for these tactics and authoritarian behavior.
As the time point indicates, China faces problems in 2025. However, there are favorable indications that will weaken them on the other side. The most important thing is that China considers the system of sanctions that the West establishes against Russia, because then this system may as well be applied to China in case of a conflict about Taiwan. 2025 holds promising times for Beijing because it will determine whether to build new allies, move towards new markets, or create new economic power in technology.
COMMENTS