Carlos Tavares warns of huge geopolitical risks in China
“There has been a clear politicization of the business climate in China for four or five years”, warns Carlos Tavares this Thursday, July 28. “It is the application of a document of the Chinese Communist Party of 2010, continues the general manager of Stellantis. We are heading towards growing tensions between the Western world and China. Western societies in very difficult situations,” he adds. Carlos Tavares already sees the proof of this in car sales in the former Middle Kingdom: “sales of German vehicles are down 20%, those of American manufacturers by 19%, Japanese brands by 14%, while that Chinese firms increase them by 11%”! This is the logic of the priority given to national manufacturers by Beijing, denounces the leader. As a result, according to him, “Western manufacturers who will have a strong industrial footprint in China will suffer and I would not like to be in the place of Volkswagen or General Motors”!
Last April, the World Trade Organization (WTO) had published a study in which it pointed to the risk of “disintegration of the world economy” generated by the war in Ukraine. The organization feared the appearance of several blocs that could jeopardize international trade. The war between the United States and China in the race for world economic leadership notably threatens the rules of cooperation, points out economist Dani Rodrik, professor at the Ford Foundation for international economic policy. Now, the sanctions imposed by the West as part of the Russian invasion of Ukraine may well accelerate the process of de-globalization and the emergence of new blocs.
It is always my pleasure to provide insightful information on important topics and if you have learned something from my article then I thank you for taking the time to share it with your friends or family.
We put a lot of heart and invest a lot of time trying to bring you the most interesting articles.
You would encourage us to do it even better in the future. Thank you!