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EU politicians use the Covid-19 pandemic as an excuse for protectionism in areas such as vaccine production and face masks, according to one of Europe’s leading industrialists.
Jacob Wallenberg, the Swedish business leader, whose family controls large stakes in companies from AstraZeneca and Ericsson to ABB and Nasdaq, told the Financial Times that the vaccines had worked well as they were treated at a “truly international level. “, while most facial masks came from China.
Using this as “an excuse for remodeling goes too far,” he said. “When I listen to politicians, I hear about the concept of reshoring, the concept that Europe should do more at home. My concern is that it will end up having more protectionist tendencies. “
The European Commission and key politicians have argued that the EU should have “open strategic autonomy” in certain sectors and trade areas to ensure that the region has independent supply chains.
In statements as head of the European Trade Roundtable Committee on Trade and Market Access for Industry (a group of 60 top executives and presidents across the continent), Wallenberg warned that this strategy risked creating barriers. in global supply chains, which had actually helped Europe navigate the pandemic.
“There has been discussion about how to start producing vaccines in all countries, including mine,” the Swedish industrialist said. “I think the fact that the vaccines were treated at a truly international level is the reason why we got vaccines as quickly as we did. There, the avoidance of autonomy has been very important.
France’s decision early in the pandemic to confiscate millions of face masks sent to the rest of the EU by Mölnlycke, owned by the Wallenberg family’s holding company, upset both the industrial and Swedish governments.
In May, the European Commission presented an update on its industrial strategy, which called for action to address supply chain vulnerabilities identified during the pandemic. The commission identified 137 products in the most sensitive ecosystems, such as raw materials, batteries, pharmaceutical ingredients, hydrogen, semiconductors and cloud technologies, where the EU depended heavily on imports from third countries, particularly China.
In a report to be released on Monday, the European Round Table warns that any intervention to increase the resilience of European supply chains, even on critical goods, “should be the exception, not the norm”.
He called for more openness to European supply chains and a greater commitment to industry in relations with China, despite growing tensions over repression in Hong Kong and human rights abuses in Xinjiang.
Earlier this year, the interests of the Wallenberg family were followed by Sweden’s ban on access to Huawei’s 5G networks.
Wallenberg, who had publicly criticized Huawei’s Swedish ban, said the only way forward was to “find a common ground” with China. As the world’s second largest economy, China was “our very important partner,” he said. “The alternative is to stop doing this. . . it is a dramatic change in the world. “
However, he added that the EU must be prepared to defend its companies against unfair practices. “I think it’s important for the EU to have a strong stance and to stand up for that,” he said.
Wallenberg welcomed European initiatives to take a closer look at foreign investment.
“I think it’s very appropriate that we have tools of this nature in place. I think it’s a matter of making sure that the principles of a level playing field can be applied, “he said.” If we end up in a situation where this doesn’t work… Of course, there must be consequences. ”
The European Round Table called on Brussels to form a unit dedicated to managing relations with China.
He stressed that while the United States remained a key strategic partner, Europe should not “copy and paste” the more aggressive stance taken by Washington with respect to relations with China. Europe had to “stand up,” he said.
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