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In Davos, the EU denounced the race to attract green industries of the future
Europe on Tuesday in Davos denounced the race to attract green industries of the future to China and the United States, encouraging investment in the face of climate change but at the same time fueling fears of rising protectionism. at the meeting organized in Switzerland by the World Economic Forum, the President of the European Commission, Ursula von der Leyen, denounced “aggressive attempts” and “unfair practices” aimed at attracting industrial capacities from Europe with subsidies, including those related to clean energy, “in China and elsewhere”. And to warn that the EU will not hesitate to “open investigations” if it considers that foreign subsidies are distorting the market. taken in particular by Beijing, which “openly encourages energy-intensive companies located in Europe and elsewhere to move all or part of their production to the territory”, and at the same time “massively subsidizes its industry and restricts access to its market for EU companies”. But he also recalled the “concerns” raised in Europe by American President Joe Biden’s major investment plan for the climate (Inflation Reduction Act, IRA), which provides a huge boost for companies founded in the United States in the sector of electric vehicle or renewable energies. Europeans are currently trying to get exemptions from the American plan, to reduce the risk that their companies or European products will suffer. Europe is working with the United States “to find solutions” and “to avoid any disruption to transatlantic trade and investment”, assured Ms. von der Leyen. Chinese Vice Premier Liu He, who spoke immediately after him, for his part called for “letting go of the Cold War mentality”, speaking in favor of more international cooperation at a time of rising tensions between Washington and Beijing on economic and trade policies, but also on the subject of Taiwan. Liu He will also have the opportunity to address the topic directly this week with Secretary of the American Treasury Janet Yellen, who did not go to Davos this year but is scheduled to meet with him in person on Wednesday in Zurich.- Challenging globalization – The American IRA , added to the migration efforts of many countries since the Covid-19 pandemic, which has disrupted global supply chains , has fueled fears of a challenge to globalization, a concept dear to Davos, which favors re-establishing barriers in trade between the main economic blocs, the United States United, China and Europe take the lead.” Public interventions are adopted in the name of economic or national security” risk leading to “unintended consequences”, or “used to obtain an economic advantage at the expense of others”, warned the manager this Monday rector of the International Monetary Fund, Kristalina Georgieva in a blog on Monday. for the rest of the world, during the debate in Davos.” The reaction of other countries should not be : + oh my God, you shouldn’t do this, it puts us in an unfair position +. Do it too .Everyone should do the same to speed up this process even more”, he said. The European Commission will also propose legislation to aim for “an industry with net zero emissions” in greenhouse gases, and therefore carbon neutral, by promoting green technologies, the president said on Tuesday. “This new regulation (…) will set clear goals for clean technology in 2030. The goal is to focus investments on strategic projects along supply chains” and “to simplify and accelerate the authorization procedures for new production areas” of green technologies, he said. It could also involve relaxing European rules on state aid, he added.bur-soe/alb/eb