When will I have a long tassel?
Chapter 557 Hedging your bets
"You are right." Carmine nodded and said, "However, in the Group of Seven, other countries except the United States do not have only one position. Not to mention Japan and Canada, even among several European countries, Everyone has different thoughts. So..."
"I see."
Thorat didn't need Carmine to say what he said before he already understood what he meant.
The concept of the G7 sounds awesome and united, but which of these seven countries is the most fuel-efficient? Everyone comes together to benefit themselves, and no one will do anything that is not good for themselves. Because of this, every G7 meeting is actually a chaotic battle of intrigues. The seven countries can set up 14 WeChat groups, and the complexity of their relationships is second only to university dormitories.
From the standpoint of European countries, it is undoubtedly best to choose neutrality between the United States and China. But Japan and Canada in the Group of Seven do not think so, because if Europe chooses neutrality, the United States will inevitably let these two countries become cannon fodder. On the contrary, if Europe is also dragged into the water, the pressure on Japan and Canada will be much less.
Although they are both European countries, the UK, Germany, France and Italy have different positions. Britain prides itself on being the big cousin of the United States, and wants to use the power of its "cousin" to have more say in Europe. Therefore, it favors the United States in many matters. For it, Europe's interests can only be ranked second. second.
If you exclude these few young people, how can even the three countries of Germany, France and Italy be able to work together with one heart and one mind? When everyone was chatting privately, they all said that they should unite to resist the pressure from the United States, but when the matter comes, no one wants to stand out. This is not the first time such a situation has occurred.
"So, what does the cabinet mean?" Solat brought the topic back to the topic. He can't control national affairs, so he should first understand Carmine's purpose.
"The cabinet believes that China's rapid development in the past 40 years has been both an opportunity and a challenge for France. It is also necessary to suppress China's development speed at the appropriate time, and it can also make China realize that France importance," Carmine said.
"In other words, do we also have to increase tariffs on China?" Solat asked.
"That's not the case," Carmine said. "Raising tariffs does not make much sense. Judging from the practice of the United States over the past year or so, the import taxes that the General Administration has increased on Chinese goods will ultimately be It is borne by American consumers and has not caused any visible blow to China.
"In fact, the United States asked its allies to take joint action at this G7 meeting because their previous phase of the trade war based on tariffs failed. If it were not for the immediate removal of the increased tariffs, the commander-in-chief would It’s embarrassing, I’m afraid he’s already going to take back this measure.”
"So, what is the new method?" Sorat asked.
"Technical blockade," Carmine said.
"I thought it was some clever method." Thorat shrugged his shoulders and said disdainfully, "From Batumi to Wassenaar, haven't we always been imposing a technological blockade on China? The result is that China continues to develop despite this blockade."
Carmine said: "The commander-in-chief believes that the reason why technological blockades in the past have not worked is because there are too few blocked projects. In fact, the Wassenaar Agreement only blocks technologies that may be used for military purposes. Civilian The technical aspects are completely liberalized.”
"Are you sure?" A sneer expression appeared on Sorat's face.
"I admit that we have indeed blocked some high-tech civilian technologies from China in the name of possible use for military purposes, but this is only a small part after all, right?" Carmine said.
We are all understanding people, and we all know what we have done in the past.
The Wassenaar Agreement was launched in the context of the end of the Cold War. In order to deceive others, it used the guise of "avoiding sensitive technologies" and claimed that it was only for security reasons and had no economic motives.
In fact, in the name of the Wassenaar Agreement, it is a very routine operation to restrict the export of technology and equipment to China that may improve China's scientific and technological level. Its real purpose is to curb China's technological development, maintain the West's technological advantage over China, and keep China at the bottom of the industrial chain forever.
However, what Carmine said makes sense. The Wassenaar Agreement is essentially contrary to international trade rules, so Western countries have to be more restrained when using the Wassenaar Agreement as an excuse. It is impossible to define all technologies as "sensitive technologies."
Of course, the more important reason is that Western capitalists are profit-seeking. They are reluctant to give up a large market like China, so they will also find ways to lobby their own governments to persuade them to abandon some unnecessary blockades.
It is also difficult for various countries to be consistent on the issue of technological blockade against China. Seeing that other countries have relaxed their standards, they are not willing to be taken advantage of. This is also the reason why China can obtain some cutting-edge technologies from the West.
"So, is the G7 planning to block all civilian technologies from China this time? For example, ban the export of French perfume and red wine to China?" Solat asked.
"That's not true." Carmine shook his head. Of course he knew that Thorat was making fun of him. In fact, from the fact that he came to Kailan Machine Tool Company in person, Thorat could definitely guess the purpose of the cabinet.
"Several large-scale milling machines produced by Kailan Company have been included in the new list of restricted exports to China. The U.S. intelligence agency suspects that the Chinese military industry sector uses these milling machines in the manufacture of several new weapons." Carmine said, At the same time, a list was handed to Solat, and what was listed on it were several milling machines of Kailan Company.
Thorat took the list and glanced at it, then handed it to Domic who was aside. At the same time, he said to Carmine: "You clearly know that these types of milling machines are used to process large gears on wind turbines. They cannot have other Uses. Have wind turbines also become China’s new weapon?”
"Maybe the Chinese have a way to make these milling machines play other roles." Carmine said.
He also knew that his statement was too insulting to the other party's intelligence. Before Thorat could refute, he rushed to say: "Solat, we are old friends, so we don't have to say some things too directly, right?
"China has made great progress in the field of wind power, and European wind power companies have also been under great pressure. Restricting the export of Kailan's milling machines to China may be able to give some help to European wind power companies, which is why we are willing to take this step. One of the reasons for action.”
"But who will make up for our losses?" Solat asked, "European wind power companies lag behind China not because we exported milling machines to China, but because these wind power companies themselves did not work hard enough.
"Domik has been to China, and he has inspected many wind power companies in China. He can tell you how hard the Chinese have worked. They can catch up from behind and defeat European wind power companies only because of themselves."
"Indeed." Domik took the opportunity to speak and quickly agreed, "Mr. Carmine, I don't think banning the export of Kailan machine tools to China will be a fatal blow to China's wind power industry. China Wind Power The competitiveness of the industry comes from many aspects, and the role played by Kailan machine tools is minimal."
"But it still has some effect after all, doesn't it?" Carmine said.
"It's just a very small effect." Domik said, "Even if we stop exporting milling machines to China, the Chinese can find substitutes in a very short time, and their production will not be interrupted."
Carmine said: "If that's the case, that would be better. You should know that the cabinet does not want to offend China too much."
"So that's it..." Thorat was speechless.
The quarrel has been going on for a long time, and the cabinet only wanted to make a symbolic gesture. After all, it was decided at the G7 meeting, and it would be fine if France did not make some gesture. But at the same time, France wants to maintain contacts with China and does not want to stand out, so it cannot offend China too hard.
After all, France is hedging its bets at this time and is unwilling to follow the United States.
"Kailan's main business is in China. The milling machines listed on the list are the most important models Kailan exports to China. If the cabinet wants to ban us from exporting these types of milling machines to China, it must give us Necessary compensation," Solat said.
"This requires you to submit a report," Carmine said.
"We will submit this report to the cabinet soon. However, we will not stop exporting these milling machines to China until the cabinet approves compensation for us." Solat said.
"Don't worry, the cabinet will respond soon." Carmine said.
Carmine left, and he had to go to several other companies to convey the same request. This is not a pleasant job. Fortunately, the cabinet also knows the difficulty of this matter and has given him a lot of authorization, including promising to provide necessary compensation to various companies.
These compensations naturally come from the national finance. Cabinet must seek parliamentary approval to pay the additional cost. As for whether the parliament will agree to this expenditure, the cabinet is not particularly worried, because the MPs are behind these companies that have received compensation. As long as the amount of compensation can satisfy the enterprise, what reason does the parliament have not to approve it?
Seeing Carmine walking away, Thorat ordered Domic:
"Domic, you go to China immediately, meet with our old friends, and explain to them what happened this time. Explain that we were just forced to do it under pressure from the cabinet. Fortunately, we made preparations in advance and promised the Chinese Our technology can be used in the event of force majeure, so their production will not be affected...
"Oh, my God, Domic, I remembered that the technology use agreement we signed with the Chinese was proposed by the Chinese themselves. Tell me, did the Chinese foresee what happened today? Already?"
Thorat remembered something and couldn't help but exclaimed.
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