logo
China's foreign minister dismisses European worries over rare earths, World News

China's foreign minister dismisses European worries over rare earths, World News

AsiaOne10 hours ago
BERLIN — China's foreign minister downplayed European worries over rare earth exports restrictions on Thursday (July 3), saying it was standard practise to control dual-use goods exports but that Europe's needs could be met if applications were submitted.
Wang Yi was speaking in Berlin during a joint news conference with his German counterpart, on the second leg of a European tour seeking to lay the groundwork for a summit between EU and Chinese leaders later this month.
"Rare earths have not been, are not, and will not be a problem between China and Europe, or between China and Germany," Wang said. "If legal applications are submitted, Europe's and Germany's normal needs can be met."
China, which controls over 90 per cent of global processing capacity for rare earths used in everything from automobiles to home appliances, had imposed restrictions in early April requiring exporters to obtain licenses from Beijing.
German Foreign Minister Johann Wadephul said the restrictions were causing "great concern" and tarnishing China's image in Germany as a reliable trade partner.
"We are on the path to finding sustainable joint solutions that will bring the necessary detente," he said.
But when Wang was asked if an agreement could be reached on restrictions ahead of the EU-China summit, he said: "This is not an issue between China and Europe... controlling dual-use goods is standard practice. China and Germany both have the right to do so."
The Chinese Ministry of Commerce already has a fast-track procedure in place to ensure that normal approvals are processed as quickly as possible, he added.
Wang came to Berlin from Brussels, where he met with EU officials including the bloc's high representative for foreign policy Kaja Kallas, who also urged Wang to end rare earth export restrictions.
Wadephul said the two foreign ministers also discussed Russia's invasion of Ukraine, Taiwan and the crisis in the Middle East.
"We believe China can play a constructive role in relation to Iran," he said.
[[nid:668005]]
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

China's intense EV rivalry tests Thailand's local production goals
China's intense EV rivalry tests Thailand's local production goals

Business Times

time20 minutes ago

  • Business Times

China's intense EV rivalry tests Thailand's local production goals

[BANGKOK] Hyper-competition in China's electric vehicle sector is spilling over to its biggest market in Asia, Thailand, as smaller players struggle to compete with dominant BYD, putting ambitious local production plans at risk. Neta, among the earliest Chinese EV brands to enter Thailand in 2022, is an example of a struggling automaker finding it difficult to meet the requirements of a demanding government incentive programme meant to boost Thai EV production. Under the scheme, carmakers are exempt from import duties, but were obligated to match import volumes with domestic production in 2024. Citing slowing sales and tightening credit conditions, carmakers asked the government to adjust the scheme and the 2024 production shortfall was rolled over into this year. Neta has said that it cannot produce the required number of cars locally and the government has withheld some payments to the EV maker, said Excise Department official Panupong Sriket, who received a complaint filed last month by 18 Neta dealers in Thailand seeking to recover over 200 million baht (S$7.9 million) of allegedly unpaid debt. The complaint, a copy of which was reviewed by Reuters, also detailed missed payments by Neta related to promised support for building showrooms and after-sales service. 'I stopped ordering more cars in September because I sensed something was wrong,' said Neta dealership owner Saravut Khunpitiluck. 'I'm currently suing them.' Neta's parent company, Zhejiang Hozon New Energy Automobile, entered bankruptcy proceedings in China last month, according to state media. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Neta and its Chinese parent did not respond to Reuters' requests for comment. Market share decline Neta's share of Thailand's EV market peaked at around 12 per cent of EV sales in 2023 when the industry was growing, according to Counterpoint Research data, with BYD having a 49 per cent share that year. In Thailand, a regional auto production and export hub, Chinese brands dominate the EV market with a combined share of more than 70 per cent. The number of Chinese EV brands has doubled in the last year to 18, placing pressure on those that lack the reach of BYD, which has taken over from Tesla as the world's biggest EV maker. In the first five months of this year, new registration of Neta cars – a proxy for sales – slumped 48.5 per cent from the prior year and its share of EV registrations was down to 4 per cent, according to government data. 'Neta's downturn in Thailand reflects the fragility of second-tier Chinese EV brands both at home and abroad,' said Abhik Mukherjee, an automotive analyst at Counterpoint Research. 'Intense price competition and the scale advantages of dominant players have made survival increasingly difficult for smaller companies, particularly in export markets, where margins are slim and robust after-sales support is essential.' In Thailand, Neta's biggest international market, it sells three models, with the cheapest Neta V-II Lite priced at 549,000 baht before discounts, compared to market leader BYD's entry-level Dolphin model that is priced at 569,900 baht. Thailand's domestic auto market has become increasingly competitive amid a sluggish economy. 'Some Chinese brands have slashed prices by more than 20 per cent,' said Rujipun Assarut, assistant managing director of KResearch, a unit of Thai lender Kasikornbank. 'Pricing has become the main strategy to stimulate buying.' China's EV overcapacity and price war have pushed automakers to expand abroad, but markets like Thailand are now mirroring the same hyper-competitive pressures, exposing smaller firms to similar risks. 'No confidence' Three years ago, Thailand unveiled an ambitious plan to transform its car industry, long dominated by Japanese majors like Toyota and Honda, to ensure at least 30 per cent of its total auto production was EVs by 2030. The country, which exports about half of its auto output, has drawn more than US$3 billion in investments from a clutch of Chinese EV makers, including Neta, who were partly lured to South-east Asia's second-largest economy by the government incentive scheme. 'Neta's case should give the Thai policymakers pause,' said Ben Kiatkwankul, partner at Bangkok-based government affairs advisory firm, Maverick Consulting Group. Last December, after a sharp sales contraction, Thailand's Board of Investment gave EV makers an extension to the initial local production timeline to avoid oversupply and a worsening price war. Under the original scheme, local EV production in 2024 was required to match each vehicle imported between February 2022 to December 2023 or the automaker would incur hefty fines. Car manufacturers avoided those fines with the extension carrying over unmet production into this year, but at a higher ratio of 1.5 times imports. Thailand's Board of Investment did not respond to a Reuters request for comment. Siamnat Panassorn, vice-president of the Electric Vehicle Association of Thailand, said Neta's issues were company-specific and did not reflect flaws in Thai policies or the market. But external shocks, including geopolitical tensions and the spectre of higher tariffs, have added to the pressure felt by the sector, he said. For Thai Neta dealers like Chatdanai Komrutai, the crisis is deepening. The brand's car owners have taken to social media in droves to share maintenance issues and limited after-sales support and a consumer watchdog agency is inspecting some of those complaints. 'Selling cars is difficult right now,' Chatdanai said. 'There's no confidence.' REUTERS

Tesla has a problem – and it's not just the Elon Musk backlash
Tesla has a problem – and it's not just the Elon Musk backlash

Business Times

time26 minutes ago

  • Business Times

Tesla has a problem – and it's not just the Elon Musk backlash

[AUSTIN] Tesla is in a sales slump, with deliveries of its electric vehicles on track to decline for the second full year in a row. The polarising politics of chief executive officer Elon Musk have alienated car buyers in major markets. Customers have yet to flock back to showrooms after Musk stepped away from his activities in Washington and ended up in a very public feud with President Donald Trump. But Tesla's problems run deeper than the consumer backlash seen over the past few months. While the automaker has given its most popular model – the Model Y – a facelift, it is lacking a new, more affordable car to revitalise its dated lineup. That has left the company vulnerable to competitors, particularly those hailing from China. Tesla's US$1 trillion market capitalisation suggests investors remain buoyant. The value they ascribe to the company is increasingly rooted in Musk's vision of a future filled with autonomous vehicles and humanoid robots, rather than the human-driven EVs in the here and now. What's happened to Tesla's sales? Deliveries hit an almost three-year low in the first quarter. The drop was due in part to the process of redesigning the Model Y, as Tesla paused output at each of its assembly plants to retool production lines for the revamped SUV. The company was counting on the spruced up Model Y to boost sales in the second quarter. Overall deliveries instead slid 13 per cent from a year earlier, undermining Musk's claim in mid-May that sales had 'already turned around.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up By Musk's own admission, Europe is the company's weakest major market. The number of new Teslas registered across the region plunged 37 per cent during the first five months of the year, according to the European Automobile Manufacturers' Association – even as the broader market expanded. Industrywide battery-electric vehicle sales in Europe were up 28 per cent. Tesla's struggles have created an opening for rival BYD. The Chinese automaker sold more fully electric cars in Europe than Tesla for the first time ever in April, in what one analyst called a watershed moment. Some are predicting BYD will pull ahead of Tesla globally for the full year – and that's without BYDs even being available in Tesla's home market, the US. Cox Automotive estimates Tesla's US vehicle sales fell 15 per cent in the first half. Tesla is still the top-selling EV brand in the US, but its share of electric-car sales has shrunk from more than 75 per cent in 2022 to under 50 per cent as of 2024, according to Cox-owned Kelley Blue Book. In China, the world's biggest EV market, Tesla's shipments from its Shanghai plant – destined both for domestic customers and for export – declined for eight consecutive months year-on-year before ticking up in June, according to the China Passenger Car Association. Why is Tesla losing ground in the EV market? Musk has stuck to a less-is-more approach to Tesla's lineup. The company only sells five vehicles – the Model S (which debuted in 2012), Model X (2015), Model 3 (2017), Model Y (2020) and the Cybertruck (2023) – and not all of these are available globally. BYD, by contrast, offers substantially more models and most of them are cheaper than Tesla's best-sellers, the Model Y and Model 3 sedan. BYD also announced in March that it had developed an EV battery system that can charge within five minutes, which could make the brand even more competitive. New entrants are threatening Tesla's standing, particularly in what was an already-crowded and competitive Chinese EV market. The most noteworthy newcomer has been Xiaomi, the smartphone maker that's branched into car manufacturing. The company secured almost 300,000 pre-orders for its second electric vehicle, the YU7, within the first hour of making the SUV available. At around US$35,000, it's cheaper than Tesla's Model Y. A sub-US$30,000 car has long been seen as key to further sales growth for Tesla. But the affordable vehicle Musk has been promising since his first 'Master Plan' in 2006 has yet to materialise. In recent years, the company instead launched the Cybertruck, an expensive pickup that's fallen well short of its CEO's volume expectations. Tesla told investors in April that new vehicles, including more affordable models, were on track to go into production during the first half of this year. But there's still no sign of any cheaper new cars, leading analysts to speculate they may have been delayed. It's unclear whether Tesla will make meaningful adjustments to its lineup anytime soon. In the near term, it could just introduce stripped-down, lower-priced versions of existing models and look increasingly out of step with competitors' fresher designs. How much are politics at play in Tesla's slump? The starkest sign that Musk's close links to Trump and the Republican Party were beginning to drag on Tesla came from California, the Democratic stronghold where the EV maker's registrations fell in all four quarters last year. The backlash intensified after the US election in November, as Musk got to work dismantling federal agencies in his role as the government's efficiency czar and cheered on far-right politicians in Europe. Musk's politicking sparked the 'Tesla Takedown' movement, whose organisers arranged protests at showrooms globally and called for a boycott of the company's products and its shares. The EV maker has also dealt with incidents of vandalism and arson. Musk has acknowledged 'blowback' from his involvement in the Trump administration, though he also insisted he's opened paths to consumers on the political right that could counter the sales he was costing Tesla on the left. That has yet to show up in the company's quarterly figures, and now Musk's ties to Trump have come under strain due to his scorching criticism of the president's tax bill. With the bromance days in the rearview, Republican lawmakers did not spare Tesla when putting the US$7,500 tax credit for EV purchases on the chopping block. As the Trump administration looks to ease fuel-economy and tailpipe-emission standards, Tesla's billions of US dollars in revenue from selling regulatory credits that help other automakers comply with the rules could come under pressure. What is Tesla doing to try to recover? Musk has assumed oversight of sales in Europe and the US after the departure of longtime confidant Omead Afshar, according to people familiar with the matter. Afshar's exit followed a string of senior-level departures this year, including Milan Kovac, the engineering lead for Tesla's Optimus robot programme, and David Lau, who ran software for over a decade. Musk's deeper involvement comes at a time when analysts estimate Tesla will fall short of the 1.79 million cars it sold last year. That would stand in contrast with a growing global market, with BloombergNEF forecasting sales of battery-electric vehicles will climb 19 per cent in 2025. As Tesla's EV momentum slows, Musk has been hyping up what he sees as the company's true calling: self-driving cars and humanoid robots. Both endeavours are some way off from starting to 'move the financial needle,' as Musk put it during an earnings call in April. Tesla's ambition is to have a driverless ride-hailing network that initially uses its consumer vehicle models before incorporating a purpose-built Cybercab, which will have no steering wheel or pedals. After roughly a decade of predicting Teslas should soon be able to drive autonomously, the company launched its long-awaited robotaxi service in late June. It was a modest debut, with Tesla only offering rides to a small contingent of fans in a confined area of Austin. Footage of several journeys drew scrutiny from federal safety regulators after the vehicles appeared to violate traffic laws. The challenge for Tesla now is to scale these operations to prove that its future is indeed in autonomy rather than automaking. 'The central question is, do you believe cars will be autonomous and electric in the future? If the answer is yes, Tesla will pull through and will be in a really good place,' said Gene Munster, managing partner of Deepwater Asset Management. BLOOMBERG

Exclusive-Google's AI Overviews hit by EU antitrust complaint from independent publishers
Exclusive-Google's AI Overviews hit by EU antitrust complaint from independent publishers

CNA

timean hour ago

  • CNA

Exclusive-Google's AI Overviews hit by EU antitrust complaint from independent publishers

BRUSSELS :Alphabet's Google has been hit by an EU antitrust complaint over its AI Overviews from a group of independent publishers, which has also asked for an interim measure to prevent allegedly irreparable harm to them, according to a document seen by Reuters. Google's AI Overviews are AI-generated summaries that appear above traditional hyperlinks to relevant webpages and are shown to users in more than 100 countries. It began adding advertisements to AI Overviews last May. The company is making its biggest bet by integrating AI into search but the move has sparked concerns from some content providers such as publishers. The Independent Publishers Alliance document, dated June 30, sets out a complaint to the European Commission and alleges that Google abuses its market power in online search. "Google's core search engine service is misusing web content for Google's AI Overviews in Google Search, which have caused, and continue to cause, significant harm to publishers, including news publishers in the form of traffic, readership and revenue loss," the document said. It said Google positions its AI Overviews at the top of its general search engine results page to display its own summaries which are generated using publisher material and it alleges that Google's positioning disadvantages publishers' original content. "Publishers using Google Search do not have the option to opt out from their material being ingested for Google's AI large language model training and/or from being crawled for summaries, without losing their ability to appear in Google's general search results page," the complaint said. The Commission declined to comment. The UK's Competition and Markets Authority confirmed receipt of the complaint. Google said it sends billions of clicks to websites each day. "New AI experiences in Search enable people to ask even more questions, which creates new opportunities for content and businesses to be discovered," a Google spokesperson said. The Independent Publishers Alliance's website says it is a nonprofit community advocating for independent publishers, which it does not name. The Movement for an Open Web, whose members include digital advertisers and publishers, and British non-profit Foxglove Legal Community Interest Company, which says it advocates for fairness in the tech world, are also signatories to the complaint. They said an interim measure was necessary to prevent serious irreparable harm to competition and to ensure access to news. Google said numerous claims about traffic from search are often based on highly incomplete and skewed data. "The reality is that sites can gain and lose traffic for a variety of reasons, including seasonal demand, interests of users, and regular algorithmic updates to Search," the Google spokesperson said. Foxglove co-executive director Rosa Curling said journalists and publishers face a dire situation. "Independent news faces an existential threat: Google's AI Overviews," she told Reuters. "That's why with this complaint, Foxglove and our partners are urging the European Commission, along with other regulators around the world, to take a stand and allow independent journalism to opt out," Curling said. The three groups have filed a similar complaint and a request for an interim measure to the UK competition authority. The complaints echoed a U.S. lawsuit by a U.S. edtech company which said Google's AI Overviews is eroding demand for original content and undermining publishers' ability to compete that have resulted in a drop in visitors and subscribers.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store