Not until there's a cheaper alternative. Until then they will not care, the life will be just more expensive for everyone in the EU.
Suppose some item from China costs $100. Now EU will add, say, $15 tax to it, for the total price of $115. So, $100 is going to China, as previously, and $15 tax paid by EU citizens is redistributed among EU citizens. And no, do not expect Chinese companies to just eat the tax, because their profit margins are usually already thin, as they are competing on price in many markets.
This may change, eventually, if Europe finally learns to manufacture things themselves, but that's a long and hard way. For at least the next decade they will have no choice but eat the tax and continue buying from China.
> And no, do not expect Chinese companies to just eat the tax, because their profit margins are usually already thin, as they are competing on price in many markets.
That's the point. From the article:
> Under the new regime, an importer of Chinese steel will have to purchase carbon credits that correspond to the same rate as steel produced in the European Union.
Europe already produces this stuff, they're just being outcompeted by China subsidizing their costs using the environment. Since China and Europe happen to be share big parts of the environment, Europe feels environmental effects no matter where the steal is produced.
Yes, I am suggesting they were already paying for this (just not with money). I think the EU is too.
* EU product 115€
* China product 100€
After:
* EU product 115€
* China product 115€
So chinese product can't just outcompete on price. And the money may actually sty in the EU.
Or if not. The tax helps pay for the negative externalities.
Forderung: demand, requirement Förderung: financial support (what you mean)
I guess the price spikes happen because demand spikes in these situations..
You have umlauts on your keyboard, yay! Vielen Dank und viele Grüße.
> I guess the price spikes happen because demand spikes in these situations..
Seems like a lot of people, and the government, guess like you. Everyone's kinda bummed in Germany that Förderung becomes available, resellers jack prices up, Förderung ends up in the pocket of the reseller. Typical money grab. Viel Öko.
As the gov is already regulating the market, they can opt to regulate the price cap for something they fund anyway. No? Same with solar panels.
I mean, it's not like the government has their own money. People of Germany fund Förderung. So people fund it in taxes so they can get in Förderung so that a group of people gets rich on the wave of the Förderung. It would be okay if people weren't forced into this technology.
Oh, what would one give to be on the drawing board of the Klimawandel and have the first hand knowledge of what people are going to be strong-armed into. Sounds like a perfect condition to put oneself in a position to greatly benefit out of it.