The geopolitical madness of US sanctions hits Bentley, Porsche and Audi cars at US ports in one piece.
Volkswagen is under pressure to abandon its joint venture in China
The Wall Street Journal reported Volkswagen is under pressure to abandon its joint venture in China
Pressure is mounting on Volkswagen to withdraw from a joint venture in China's Xinjiang region in the latest example of geopolitical tensions colliding with the business priorities of Germany's largest manufacturers.
Volkswagen said the United States had detained thousands of its Bentley, Porsche and Audi cars at US ports because the cars contained a part made by a Chinese supplier on a sanctions list for using forced labor in Xinjiang.
“A small portion,” a VW spokesman said, adding that it was in the process of retooling the vehicles and delivering them to dealers. “We're really trying, but this shows how difficult it is to know everything that's going on in complex supply chains.”
Last week, German chemicals giant BASF said it would accelerate its plans to divest itself of two joint ventures in Xinjiang, citing the market environment, the carbon footprint of products produced there and news reports that claimed its joint venture partner was involved in human operations. -Rights violations.
This move does not mean BASF's exit from China. On the contrary, it plans to invest up to 10 billion euros, equivalent to about $10.7 billion, in the country by 2030 while reducing its footprint in Germany due to rising energy bills. Volkswagen, which made 35% of its sales in China last year, has no plan to reduce its presence in the market.
“Ironically, China was the winner in Trump's trade war.said Jürgen Mattis, head of international economic policy at the German Economic Institute, an independent think tank. “It benefited in the form of additional investments while Germany borne the costs“.
“I've been saying for months that companies importing cars into the United States need to know the origin of every component in the car;said Sen. Ron Wyden (D-Ore.), Chairman of the Senate Finance Committee.
Down to the back of the mosquito
The United States does not tell American companies what they can or cannot do, and the United States also demands the right to tell the entire rest of the world what it can or cannot do, right down to the mosquito's butt, with absolutely zero tolerance.
German chemical giant BASF is in the same boat as Volkswagen. It will be transported from one region of China to another.
Surprisingly, Germany turned to China because Germany's reckless energy policy made it expensive to manufacture things in Germany.
For discussion please see The days of Germany's industrial superpower are over. Is it a green victory?
Trump and Biden, no difference
In the United States, there is no difference between Trump and Biden regarding sanctions or tariffs.
They both demand the right to tell the world what they can and cannot do. Costs rise as a direct result.
A law expert friend of mine who has argued cases in the Supreme Court commented, “Oh my God. This is very strange. Generally speaking, the importer can pay a fine for the part that violates Section 337.”
337 refers to US Section 337 of the Tariff Act of 1930.
How does China get around US sanctions on semiconductors?
Yesterday I got stuck How does China get around US sanctions on semiconductors?
The United States is far ahead of China in technology, but China is advancing on the ground faster than anyone imagined.
The US wanted to restrict China's access to 7nm chips, but now it appears China is making its own 5bn chips, and the smaller the better.
Motivation to break sanctions
China lags behind the United States in technology, but the direct result of the sanctions is that China now produces its own chips rather than buying them from the United States.
On December 29, 2023 I noticed How does Russia mock US sanctions in one photo?
On September 19, 2023, she was suspended Today's lesson: Sanctions do not work because they create new markets
The irony of punishment
The irony of this madness is that US sanctions have made Russia and China profitable, punished US allies, and raised costs for US companies and US consumers.
People believe that inflationary pressures have been eliminated. What a sorry hoot.
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