> It's 100% protectionist politics once you start doing more interesting things :)
So its aggressive economic politics now if country A buy less from country B, by making the stuff it needs itself? That doesn't compute.
> They can simply retaliate by forcing EU-related companies out.
Sure, they can do that. Only, given that the EU is their most important trading partner, and forcing companies out would probably spiral China into a recession, destroying decades worth of economic growth in the process, I somewhat doubt that China is willing to shoot itself in the foot just to throw a tantrum.
> So its aggressive economic politics now if country A buy less from country B, by making the stuff it needs itself? That doesn't compute.
Yes it is. The problem with modern manufacturing (and services to lesser extent) is not to build something, but find a market for it.
> Sure, they can do that. Only, given that the EU is their most important trading partner, and forcing companies out would probably spiral China into a recession, destroying decades worth of economic growth in the process, I somewhat doubt that China is willing to shoot itself in the foot just to throw a tantrum.
China is already doing all sort of protectionist practices. And West does not retaliate. Furthermore, it plays along to make a quick buck in massive Chinese market.
Do you want what would send China into a recession for sure? Chinese economy is export-driven. If West limited import from China (effectively capping Chinese export), that'd do a lot of damage to China. And China knows that very well.
So its aggressive economic politics now if country A buy less from country B, by making the stuff it needs itself? That doesn't compute.
> They can simply retaliate by forcing EU-related companies out.
Sure, they can do that. Only, given that the EU is their most important trading partner, and forcing companies out would probably spiral China into a recession, destroying decades worth of economic growth in the process, I somewhat doubt that China is willing to shoot itself in the foot just to throw a tantrum.