Europe after the United States launched an attack on China to the detriment of the economy

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www.vsyako.netPhoto: Carlos Barria / Reuters

On the background of the pandemic COVID-19, which had a paralysing effect on the world economy, the European Union after the United States launched an attack against China’s economic expansion and intensified efforts to concentrate production at home, or closer to the borders. However, the vast majority of the national companies (over 80 percent) are not ready to reorient production to other markets, as this may cause damage, writes Bloomberg.

So, according to the founder of the Italian footwear brand Baldinini gimmi Baldinini, for the release of the sporting goods company uses a factory in Shenzhen China, which reduces costs by 75 percent. Production is possible to move only if the Italian government will reduce taxes and labor costs.

The initiative of the European Union covers a wide range of issues. Strategy of development of pharmaceutical sector a priority. According to the German company Stada Arzneimittel AG, China manufactures about 40 percent of the active pharmaceutical ingredients. Therefore, as Bloomberg reports, to ensure strategic autonomy in this area will not be easy for the EU.

Difficulties remain also in the automotive industry, especially for Germany, which are more dependent on global suppliers — they account for 17 percent of production. In particular, China provides around 40 percent of supply for German automaker Volkswagen AG. France and Germany decided to join forces to challenge China as the leading manufacturer of batteries for electric vehicles. In the coming years it is planned to invest about 8.2 billion euros.

According to experts, the European economy started to gradually recover from the effects of the crisis caused by the coronavirus. Significantly improved the mood of society regarding the scope of employment, however, in some sectors the figures are 60 percent lower than they were before the epidemic.

Video, photo All from Russia.

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