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Jokowi says ‘fully supports' party chaired by son, but is the ex-president eyeing a bigger political vehicle?

Jokowi says ‘fully supports' party chaired by son, but is the ex-president eyeing a bigger political vehicle?

CNA4 days ago
JAKARTA: In his most extensive remarks on his next potential political vehicle after stepping down as Indonesia's seventh president, Joko 'Jokowi' Widodo has said he will fully support the Indonesian Solidarity Party (PSI) chaired by his youngest son.
Analysts said that by throwing his weight behind PSI, there will be public expectation for the former president to help it perform better in the 2029 general election than its abysmal showing in previous polls.
But his involvement in PSI remains unclear and is far from certain, given that Jokowi is not even a PSI member and does not have a formal leadership role, observers said, adding that he could be eyeing a position in another bigger party.
The Indonesian Democratic Party of Struggle (PDI-P) had backed Jokowi's political career and two successful presidential bids, but he had to leave the party in 2024 after deciding not to endorse PDI-P presidential candidate Ganjar Pranowo.
Jokowi enjoyed high approval ratings during his two terms in office.
But since stepping down as president in October 2024, signs are that Jokowi's influence is waning amid speculation over his health and whether he would take up a leadership role in a party as a vehicle to retain political relevance.
So all eyes were on him last weekend as he spoke at the PSI Congress in Solo, where his son Kaesang Pangarep, 30, expectedly won a re-election as chairman of the youth-driven party.
'I will fully support PSI… I will work hard for PSI,' Jokowi told party members and supporters last Saturday (Jul 19).
Jokowi also urged the party to finalise its organisational structure to help PSI better understand the aspirations of people across Indonesia. Typically, after a party congress, its chairman will decide other leadership positions.
'If the target for 2029 is simply to enter Senayan (parliament), I think that shouldn't be the target—because that must happen. It's too small if our goal is only to get into Senayan,' said Jokowi.
When asked by reporters the next day what form his support for PSI might take, Jokowi simply reiterated that he would offer his 'full support'.
'It will be full support, which means working hard. I can be at the front, behind, or even in the middle,' said Jokowi, as quoted by news outlet Tempo.
WHAT IS PSI?
PSI was founded in November 2014 by a group of young activists promoting clean, transparent, and diversity-driven politics. Its first leader was Grace Natalie, a former journalist of Chinese-Indonesian descent.
The absence of a strong influential figure has contributed to PSI's poor performance in the past two elections, said analysts.
In the 2019 election, PSI secured only 1.89 per cent of the vote—well below the 4 per cent parliamentary threshold to win a seat.
PSI then sought to rebrand itself by appointing Giring Ganesha, a former rock band vocalist, as its new leader. He was later replaced in 2023 by Kaesang after the party hit a low point and aimed to attract younger voters.
PSI appointed Kaesang as party chairman just two days after he officially joined the party.
Prior to that, Kaesang was a businessman with no political experience.
Kaesang's leadership did help PSI increase its vote share to 2.80 per cent in last year's legislative elections, but it still fell short of the electoral threshold.
PSI founder Jeffrie Geovanie admitted that appointing Kaesang in 2023 was a strategic move to capitalise on the Jokowi family name. Without that, he said, the party risked collapse due to declining popularity.
'If we don't even get even a drop of blood, a single support from the Jokowi family—or Jokowi himself — we might as well shut the party down,' Jeffrie said at the PSI congress over the weekend, recounting what he told party members before Kaesang was first appointed chairman in 2023.
Kaesang was re-elected last weekend as chairman after securing more than 60 per cent of the votes, defeating two other candidates.
JOKOWI AS PSI PATRON OR IS HE AIMING FOR SOMETHING BIGGER?
Observers suggest that Jokowi's support for PSI may be in the form of a patron rather than a formal leadership post alongside his son.
'PSI's weakness all along has been its lack of a strong patron,' Ambang Priyonggo, assistant professor of political communication at the Multimedia Nusantara University, told CNA.
'Jokowi can influence public perception, so he will support the party from behind the scenes.'
Agung Baskoro, a political analyst from the think tank Trias Politika Strategis, agreed, adding that the relationship between Jokowi and PSI is a mutually beneficial one.
'PSI needs a figure like Jokowi. Meanwhile, Jokowi needs a political vehicle to shield himself and his family from political attacks, as well as to protect his legacy and influence,' said Agung.
Political communication analyst and KedaiKOPI survey institute founder Hendri Satrio noted that Jokowi now carries a big responsibility to elevate PSI's reputation, and will likely go 'all out' to do so, as PSI's resurgence would also help restore his own public image.
'If PSI collapses, the embarrassment falls on Jokowi. The party is trying to shift the burden of raising voter support onto the Jokowi family,' Hendri told CNA.
According to Ambang of Multimedia Nusantara University, it is likely that Jokowi has not joined PSI as a leader or member because he sees his stature as bigger than that of the party.
'Someone of Jokowi's calibre is too big for PSI,' Ambang said.
Furthermore, saying that he supports PSI does not preclude him from officially joining a more established party.
'There's a chance Jokowi could join another political vehicle. There's one party clearly affiliated with him — he could be recruited by that party: Golkar,' said Ambang.
Agreeing, Made Supriatma, a visiting fellow at Singapore's ISEAS–Yusof Ishak Institute, believes that Jokowi is aiming to align with another party beyond PSI, calling "Golkar the ultimate prize".
'PSI has major limitations. It's run by Gen Z youth with minimal experience and no grassroots base,' Made told CNA.
'They're not from circles accustomed to political manoeuvring — unlike Golkar.'
Golkar was part of Jokowi's two governments when he was president and had consistently supported his policies.
Speculation about Jokowi joining Golkar has circulated since last year, though it has yet to materialise.
Following the resignation of its leader Airlangga Hartarto in August 2024, Golkar appointed Energy and Mineral Resources Minister Bahlil Lahadalia, a key Jokowi ally, as its chairman.
Made said that Golkar, founded in the 1960s during the New Order era, is arguably the most suitable party for Jokowi.
However, he added that such a move would not be easy given Jokowi's waning political influence and the view among some in Golkar of him as someone who never contributed to building the party.
Ambang also pointed out internal divisions within Golkar between factions that support Jokowi and those that oppose him.
JOKOWI'S POLITICAL STANDING
Observers whom CNA spoke to generally agreed that Jokowi still holds some political sway due to his former presidential status, but his influence is on the decline.
'In terms of electoral coattail effects, Jokowi likely doesn't have the same pull as before. His term is over, and issues like the fake diploma allegations have eroded his image,' said Ambang, referring to lawsuits filed based on such claims which have been denied by Jokowi and his university.
Made of ISEAS Yusof-Ishak Institute added that many of Jokowi's former supporters have turned against him.
This is especially after his other son Gibran Rakabuming Raka became vice-president following a controversial Constitutional Court ruling that lowered age requirements for presidential candidates and allowed the then 36-year-old to contest in last year's election.
'It's almost impossible for Jokowi to return to power. The post-Prabowo era will belong to the younger generation,' Made said, referring to President Prabowo Subianto.
Analysts also downplayed the significance of Prabowo's recent visit to Solo to meet Jokowi for an hour, reportedly to brief his predecessor about the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement.
Negotiations for the agreement had started during Jokowi's term and had taken 10 years before concluding earlier this month.
Made said that the visit was just a way for Prabowo to still show respect to Jokowi, whom Prabowo had said played a crucial role in securing his victory in last year's presidential election.
'He didn't go there to report anything. There's no downside for Prabowo in continuing to respect Jokowi,' Made said.
met with PDIP chair Megawati Soekarnoputri.
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Vietnam, Indonesia, the Philippines have secured lower tariffs with the US - lessons for other ASEAN states?
Vietnam, Indonesia, the Philippines have secured lower tariffs with the US - lessons for other ASEAN states?

CNA

time2 days ago

  • CNA

Vietnam, Indonesia, the Philippines have secured lower tariffs with the US - lessons for other ASEAN states?

JAKARTA: With three Southeast Asia countries having struck trade deals with the United States, their approach offers a possible template for other countries in the region still trying to negotiate a lower tariff rate with the superpower, say analysts. They point to some similarities in what Indonesia, Vietnam and the Philippines have done as lessons their neighbours could potentially adopt: Offering zero tariffs on US goods, buying more US products and speaking directly to President Donald Trump. However, observers added that these factors may not apply in the same way to all Southeast Asia countries. Furthermore, Trade and investment expert Andry Satrio Nugroho from the Institute for Development of Economics and Finance (INDEF) said that it remains unclear whether the three deals announced so far would be the best, given that other Southeast Asian countries are still negotiating with Washington. 'We still don't know whether Vietnam and Indonesia are countries whose tariffs can be classified as much lower than those of other countries, especially in ASEAN,' he said, referring to the 10 member states of the Association of Southeast Asian Nations. 'Because there could be (better) opportunities for Thailand or Malaysia or other Southeast Asian countries.' Still, Andry and other experts CNA spoke to said Southeast Asian countries could look to the agreements that Vietnam, Indonesia and the Philippines each have with the US to negotiate their own favourable deals before Aug 1, the day Trump's tariffs will take effect. The Philippines is the latest Southeast Asian country to close a deal with the US. Trump announced the agreement on Tue (Jul 22) and said that the US would impose a 19 per cent tariff on goods from the Philippines, just below the 20 per cent he had threatened earlier this month, but still above the 17 per cent rate set in April. He had announced on Jul 15 that the US had struck an agreement with Southeast Asia's biggest economy, Indonesia. This deal placed a 19 per cent tariff on Indonesian goods entering the US, down from 32 per cent. Two weeks previously, Trump had announced that his country and Vietnam reached an agreement under which goods from Vietnam entering the US would be subject to a 20 per cent tariff, a sharp drop from the 46 per cent announced in April. He lauded Hanoi's willingness to charge zero per cent tariffs on US products. 'Vietnam will do something that they have never done before, give the United States of America total access to their markets for trade,' said Trump on Jul 2 in a social media post. CONCESSIONS AND AGREEMENTS FROM THE PHILIPPINES, INDONESIA AND VIETNAM Besides levying zero tariffs on US goods, both the Vietnam and Indonesia agreements contained a clause on transshipment, a practice involving the exports of goods originally from another country. In Vietnam's case, transshipped goods face a 40 per cent tariff, double the 20 per cent baseline rate, signalling Washington's intent to clamp down on workaround routes that have long benefitted Chinese exporters. Trump has accused Vietnam of being used to ship Chinese products so that Beijing can avoid the high tariffs the US imposes on China, according to Andry from INDEF. However, few details are known about the agreement between Hanoi and Washington, with some media outlets reporting that Vietnam is still attempting to negotiate a better deal. Some media reports also said that Trump's announcement caught Vietnam by surprise, as it had thought the tariffs agreed upon were 11 per cent. Like Vietnam, Indonesia will open its entire market to the US without any restrictions. Alongside the 19 per cent tariffs on Indonesian goods coming to his country, Trump announced that the archipelago will also purchase US$15 billion in US energy, US$4.5 billion in American agricultural products, and 50 Boeing jets, many of which are 777s. If there is any transshipment from a higher tariff country exported from Indonesia, then that tariff will be added to Indonesia's current baseline tariff. On Tuesday, the White House issued a joint statement with Indonesia saying that Indonesia has agreed to eliminate tariffs on more than 99 per cent of US goods and scrap all non-tariff barriers facing American firms. Among other things, Indonesia has agreed to remove export restrictions on industrial commodities, including critical minerals, according to the joint statement. It would also remove local content requirements, which require companies to use components made in Indonesia in their manufacturing processes for products entering the archipelago. Indonesia also will remove recently enacted pre-shipment inspections and verifications of US exports that have posed problems for US agricultural exports and contributed to a growing US farm trade deficit, the statement said. Negotiators for both countries would finalise the actual agreement in coming weeks, said a fact sheet issued by the White House. Speaking at a panel discussion on Trump's tariffs in Jakarta on Wednesday, Fithra Hastiadi, a senior advisor of the Indonesian Presidential Communication Office, said the agreement is a win-win for both countries. 'We consider this a first win,' said Fithra. 'But we're aiming to achieve - as the joint statement suggests - that some of our products that are not directly competing with the US, for example, nickel, coffee, cinnamon, spices, CPO (crude palm oil), other agricultural products, minerals, and also aircraft components, can be actually aimed to zero per cent.' However, Andry from INDEF and economic researcher Dandy Rafitrandi from the think tank Center for Strategic and International Studies (CSIS) are both concerned about the lifting of restrictions on critical mineral exports to the US. Andry said this may trigger other countries to want the same, a move which Indonesia is unlikely to give, given that it is focused on its downstream industry. For the past decade, Indonesia has tried to process its raw minerals locally to create higher-value finished products as it aims to increase economic growth. "They could ultimately protest why the US is given special privileges while other countries aren't. So, it's considered unfair in terms of trade treatment,' he said. Meanwhile, the deal with the Philippines reportedly includes a zero tariff on goods such as imported US cars. Additionally, Marcos said the Philippines would import more soy, wheat and pharmaceutical products from the US. The Philippines president, whom Trump described as 'a very tough negotiator', said that there were still many details to be ironed out in terms of other products that could potentially be affected by the deal. 'One (percentage point) might seem like a very small concession. However, when you put it into real terms, it is a significant achievement,' he said. However, some critics called the deal "unfair", and expressed concern over the potential concessions to the US. '(The) 19 per cent against zero (per cent) tariffs is definitely not the most fair deal between decades-old friends or allies like the United States and the Philippines,' said Philippines Senator Panfilo Lacson in a statement on Wednesday. ZERO PER CENT TARIFFS: KEY TO NEGOTIATIONS? Economic researcher Dandy from CSIS said that Vietnam, Indonesia and the Philippines held several negotiation talks with the US before reaching an agreement. He added that the zero per cent tariff on US goods could be an example for other ASEAN countries to follow if they are looking to secure their own deals quickly. 'The key to negotiations between Indonesia, Vietnam and the US is the zero per cent tariff,' he said. He added that the exception so far is Japan, which also struck a deal with Washington on Tuesday, but managed to get a 15 per cent tariff - lower than the three Southeast Asian countries. Trump said the deal would include improved market access into Japan for American goods including automobiles, rice and other agricultural products. Japanese autos, which account for more than a quarter of the country's exports to the US, will see existing tariffs cut to 15 per cent from levies totalling 27.5 per cent previously. Japan will keep its existing tariffs on imports of U.S. agricultural products. The country will import more rice from the United States but within the existing tariff-free quota, Japanese Prime Minister Shigeru Ishiba said. "Japan seems to be an exception, because they're clearly a source of investment from the United States," said Dandy. He added that the zero-tariff tactic is applicable to most countries in Southeast Asia, apart from Singapore, where US goods are already duty-free. Instead, Singapore may work on other deals, such as those involving weapon purchase, he said. But not every country may want to impose a zero tariff for the US, experts noted. Indonesia has reached a deal with the US because it is committed to buying US products, said Andry from INDEF, and it can do so because it is a large market. Smaller Southeast Asian countries may not be able to do this as they don't need large quantities of (imported) products, said Andry. However, he and Made Supriatma, a political expert and visiting research fellow at Singapore's ISEAS-Yusof Ishak Institute, said that Indonesia's talks to purchase 50 Boeing aircraft were already in place during the previous Joe Biden administration, so it is not new. 'The same goes for the export of agricultural products - that was also part of Biden-era agreements. Now Trump is trying to claim them as his own,' said Made. Manufacturing countries like Thailand may not be able to adopt the same approach of granting zero tariffs on US goods, said Andry. He said Thailand, which faces 36 per cent of tariffs, usually imports spare parts. It does not typically import whole products, since it has a strong domestic manufacturing sector, he added. In any case, Thai economist Somjai Phagaphasvivat said in an interview with the Bangkok Post that the Kingdom cannot offer the same kind of trade proposals to the US as Vietnam. 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Philippines President Ferdinand Marcos Jr is in the US this week, the first visit by an ASEAN head of state since Trump took office in January, while the leaders of Vietnam and Indonesia had phone calls with Trump. This could be key to getting a negotiation, but Andry from INDEF said that many countries must have done the same, in particular, phone calls. 'I think there are a lot of phone calls. I mean, let's not even talk about ASEAN - 75 countries are already nervous about facing these Trump tariffs,' said Andry. 'What is important to note is … who gets Trump's attention, in my opinion.' In early July, To Lam, Vietnam's General Secretary of the Communist Party of Vietnam, had a phone call with Trump during which he reiterated an invitation for the American leader to visit Hanoi. Meanwhile, Prabowo spoke with Trump on the phone during his foreign visits. Upon landing in Jakarta on Jul 16, Prabowo also said he will go to the US in September or October. So, whether these phone calls matter or not - or an actual visit is even better - remains to be seen, said Dandy from CSIS. 'It's very unpredictable. We can't decode what formula Donald Trump has because, frankly, no one can predict it,' he said. 'But if you say the template already exists, I think it does. Indonesia has tried Vietnam's template, and it works. So, maybe other countries can use the same template.'

As the US cuts trade deals across Asia, how is China feeling the heat?
As the US cuts trade deals across Asia, how is China feeling the heat?

CNA

time2 days ago

  • CNA

As the US cuts trade deals across Asia, how is China feeling the heat?

BEIJING/SHENZHEN: First, Vietnam and Indonesia. Now, the Philippines and Japan. As the United States strikes a wave of trade deals across Asia, offering lower tariffs to key partners, analysts say Beijing may be pushed to respond, whether by deepening engagement with non-Western partners or showing greater flexibility in talks with traditional ones. This includes the European Union (EU), which is set to hold a high-level summit with China in Beijing on Thursday (Jul 24). While some Chinese businesses in Europe are hoping for meaningful outcomes, observers caution that longstanding sticking points, such as industrial overcapacity and unequal market access, could limit progress. 'There may be some low-lying branches that the EU and China may reach for. Those would be a bonus for the bilateral relationship,' Lim Tai Wei, an East Asian affairs observer and professor at Soka University's business faculty, told CNA. Still, analysts say China is under growing pressure from Washington's economic manoeuvres in Asia. 'Pressure on the PRC (People's Republic of China) will come in the form of exports from other economies being more competitive,' Chong Ja Ian, associate professor of political science at the National University of Singapore (NUS), told CNA. Observers say Beijing is likely to be especially wary of clauses in the US trade deals that could directly or indirectly undermine its export interests. One example is the US-Vietnam agreement, which imposes far steeper tariffs on goods identified as being transshipped. The Trump administration's transshipment clause is aimed at Chinese firms that use countries in Southeast Asia as conduits for their products to avoid higher US tariffs. ART OF THE DEAL The US under President Donald Trump has been securing bilateral trade agreements across Asia, part of its wider 'reciprocal tariff' strategy that rewards compliance with lower duties while penalising countries that do not play ball. As of Wednesday, Japan, the Philippines, Vietnam, and Indonesia have all reached deals that reduce the tariff threats they initially faced, while deepening trade and investment ties with the US. Trump announced the latest deals with Tokyo and Manila on Tuesday, just over a week ahead of his Aug 1 deadline. Japan will face 15 per cent duties, down from 25 per cent, alongside a sweeping investment commitment into the US worth more than US$550 billion. In a post on his Truth Social media platform, Trump hailed the deal with Japan as 'massive', claiming the US would receive '90 per cent of the profits'. "This deal will create hundreds of thousands of jobs - There has never been anything like it," he wrote. Meanwhile, the Philippines secured a 19 per cent tariff rate, a touch below the 20 per cent levy floated earlier this month. The announcement followed a meeting between Trump and Philippine President Ferdinand Marcos Jr at the Oval Office. Analysts say the US trade deals across Asia underscore how countries in the region continue to view the US as an integral economic partner. 'The eagerness for deals with the Trump administration suggests that most economies see the United States as indispensable, at least for now,' said NUS' Chong. At the same time, American dealmaking across Asia is turning up the heat on China by giving its regional export rivals a potential edge in accessing the world's largest consumer market, say observers. China is the largest trading partner for Indonesia and Vietnam. Bilateral trade between China and Indonesia reached US$147.8 billion in 2024, a 6.1 per cent year-on-year increase, while China-Vietnam trade surged 14.6 per cent year-on-year to 1.85 trillion yuan (US$257.8 billion) that same year, according to China's customs data. China has also long been Japan's largest trading partner, and one of the largest investment destinations for Japanese companies. Meanwhile, trade with the Philippines remains robust, although rising tensions in the South China Sea have cast a shadow over broader relations. Experts say China will be scrutinising the fine print of the US trade deals across Asia, wary of any provisions that could directly or indirectly undermine its economic interests. Particular attention is likely to focus on clauses targeting transshipments, the practice of rerouting Chinese goods through third countries to bypass tariffs. For example, in the case of the US-Vietnam agreement, goods identified as transshipped face a 40 per cent tariff, double the 20 per cent baseline rate, signalling Washington's intent to clamp down on workaround routes that have long benefited Chinese exporters. Such provisions threaten to shut off a critical pressure valve in China's trade strategy, raising costs for exporters and potentially diverting orders to rival manufacturing hubs that now enjoy more favourable terms. This would also pile further economic stress on the Chinese economy, which is already contending with sluggish domestic demand, weak private investment and mounting demographic headwinds, including an ageing population and a shrinking workforce. 'Chinese pressure and displeasure can be expected if actual implementation of the deals damages Chinese economic interests such as reducing demand for their exports,' Hoo Tiang Boon, an associate professor at Nanyang Technological University's (NTU) school of social sciences, told CNA. China has consistently voiced strong opposition to any deal between the US and its trading partners that come at the expense of Chinese interests. 'If proven to damage Chinese interests … China may impose targeted sanctions such as curtailing exports which those countries need; or impose additional tariffs commensurate with those imposed by the Americans on Chinese goods,' he said. Beijing and Washington are now nearing the end of an uneasy 90-day trade truce agreed in May, which put a pause on escalating tit-for-tat tariffs. With the Aug 12 deadline looming, officials from both sides are set to meet in Stockholm next week to discuss a possible extension and narrow the gaps toward a broader trade agreement. Given its sputtering economy, it would be unwise for Chinese policymakers to adopt an aggressive diplomatic stance against the US, said Benjamin Ho, assistant professor at the S Rajaratnam School of International Studies' (RSIS) China Programme. 'It would attempt to buy time in order to diversify its economic exports. But the West still remains very much the main consumer market,' he said. AS US DEALS, CHINA REVIEWS ITS HAND Indeed, as Washington deepens its economic dealmaking across Asia, analysts say China will likely keep up its diversification strategy - strengthening ties with partners such as the EU, BRICS and ASEAN, in a bid to balance the scales. '⁠⁠The current deals with the United States could encourage the PRC to work more with others, including the European Union,' said NUS' Chong. While Beijing will increasingly seek new partners for technological collaboration, potentially creating new business opportunities, Chong also warned of potential ripple effects. 'The diversion of PRC exports away from the United States could further flood other markets with cheap PRC goods, creating pressures on their enterprises,' he said, adding that thorny issues like overcapacity and intellectual property protection also remain. CNA previously reported on how China's export engines are increasingly aimed at Southeast Asia as Chinese products lose their lustre in the West, and how this would bring more benefits for consumers but also challenges for businesses in the region. Against this backdrop, the upcoming EU-China summit on Thursday is set to be closely watched for signs of whether Beijing is prepared to offer trade concessions or recalibrate its approach to longstanding issues. European Council President Antonio Costa and European Commission President Ursula von der Leyen will be attending the summit in Beijing, and are set to meet with Chinese President Xi Jinping and Chinese Premier Li Qiang. Analysts have signalled low expectations for any breakthrough as trade frictions persist, and Europe remains wary of Beijing's support for Russia's war in Ukraine, as well as its broader challenges to international law and global institutions. While the expectation of any immediate deal is low, China may be more flexible in addressing a wider range of issues and positioning itself as a 'free trade enabler', Gary Ng, senior economist at Natixis and research fellow at the Central European Institute of Asian Studies, told CNA. 'It can be the removal of certain sanctions or commitment to market access, or easing some anti-dumping duties,' he said. European Commission spokesperson Olaf Gill has said that the upcoming summit provides an opportunity to address these concerns. 'That relationship … must be based on fair competition and on a level playing field,' he said at a regular press briefing on Jul 10. 'There are a number of trade-distorting measures, unfair competition and an unlevel playing field - challenges that the EU wants China to meaningfully address.' Chinese businesses have urged EU and Chinese leaders to come together and reach a deal to reduce trade barriers. 'We the business community hold high expectations, hoping that China and Europe can seize this historic opportunity to achieve substantive results (at the summit)', said Fang Dongkui, secretary general of the China Chamber of Commerce to the EU. The chamber hopes the two sides can broker a deal to remove trade barriers in several areas, including the EU's tariffs targeting Chinese electric vehicles, Fang told the South China Morning Post. Soka University's Lim said there is a possibility both sides could come to an agreement on 'low-lying branches' such as brandy and on other secondary issues that could help ease pressure in the broader bilateral relationship. In the lead-up to the summit, Chinese Foreign Minister Wang Yi met Estonian Prime Minister Kaja Kallas in Brussels on Jul 3. In a statement released by China's Foreign Ministry, Wang said China does not see the EU as an adversary and called for managing differences through dialogue. 'China and the European Union should not be regarded as opponents because of differences, nor should they seek confrontation because of disagreements,' he said. A day later, China excluded major cognac producers Pernod Ricard, LVMH and Remy Cointreau from planned anti-dumping duties on European brandy. The move stood out as a rare positive signal amid persistent trade tensions with Brussels, as both sides continue to clash over EU tariffs on Chinese-made electric vehicles, with Beijing signalling possible retaliation. While gestures such as those on European brandy offer a potential path forward, NUS' Chong said they remain largely symbolic without concrete follow-up. 'The manufacture and sales of these luxury items do not replace the effect from automobiles, for example,' he said.

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