Europe Has Come to a Fork in the Road on Trade | RealClearWorld

It’s time to choose a side.  - Michael Lucci

Having lost access to the U.S.’ $23 trillion consumer market, China will see the EU’s $14 trillion consumer market as the only one that can absorb a meaningful share of the glut...

• But the balance of trade has always favored China...
• Instead of winning in China’s market, European companies will eventually lose in their own. 
• One would be naïve to believe that Europe can keep its foothold in China’s marketplace indefinitely, or that the predatory Red Dragon won’t turn on and feed upon its European competitors. 
• Those eventualities are already coming to pass. 

Last fall, Volkswagen’s ebbing fortunes forced it to sell a plant in China. 

And under pressure from state-subsidized (lower-priced) Chinese EV imports, the carmaker nearly shuttered German facilities but instead opted for 35,000 job cuts by 2030. 

Mercedes plans a 10% cut in production capacity at its German plants by 2027...