Tariffs and Tactics: The EU's struggle with China’s electric vehicles and ancient wisdom

Yesterday, while we were walking down a Brooklyn street with the children, my son asked me about my father, his grandfather. At that moment, I had a thought in mind, but I didn't dwell on it, fearing the topic might be too complicated for our light stroll.

My father had always had a passion for military history, both Chinese and the world. He particularly enjoyed discussing the Spring and Autumn (771–256 BCE) and Warring States (475–221 BCE) periods of ancient China, believing they offer rich lessons about human nature, politics, power dynamics, and even social and economic reform—insights that remain relevant today.

I didn't fully grasp this until recently when I read about the EU's decision regarding Chinese electric vehicles (EVs).

During the Warring States period, two major diplomatic strategies were employed: 合纵连横 (hé zòng lián héng), which means "vertical and horizontal alliances." The vertical alliance strategy involved smaller or weaker states uniting against a dominant power, while the horizontal alliance as a counter strategy enabled the dominant power to forge individual alliances with neighboring states to prevent their unity.

In the EU’s recent decision to impose heavy tariffs on Chinese electric vehicles, the bloc seemed to be adopting a vertical alliance strategy by collectively resisting Chinese imports. Meanwhile, China employed a horizontal alliance approach, reaching out to individual EU countries—particularly those with significant trade ties, like Germany—to prevent a unified EU response.

These strategies culminated in a pivotal vote, where ten EU members supported the tariffs, five voted against, and twelve abstained.

Ultimately, the vote on the EU tariffs on Chinese electric vehicles highlights the complexities of Europe's relationship with China, especially regarding economic and industrial strategy. It underscores the EU's fragmentation, where national interests, trade dependencies, and economic alliances can often override a cohesive unifying approach. This fragmentation makes it easier for China to navigate challenges than it would be against a united Western front.

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10 responses
Yanwen Xia upvoted this post.
This ancient wisdom seems very distant from reality today
"vertical and horizontal alliances." Great one!
7 visitors upvoted this post.