China retaliates against EU ban with import restrictions on medical devices
European Union
that exceed 45 million yuan ($6.3 million) in value, in retaliation to Brussels' own curbs last month.
Tensions between Beijing and Brussels have been rising, with the European Union imposing tariffs on China-built electric vehicles and Beijing slapping duties on imported brandy from the bloc. The European Union said last month it was barring Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros ($70 billion) or more per year after concluding that EU firms were not given fair access in China.
The measure announced by the European Commission was the first under the EU's
International Procurement Instrument
, which entered into force in 2022 and is designed to ensure reciprocal market access.
China's countermeasures were expected after its commerce ministry flagged "necessary steps" against the EU move late last month.
"Regrettably, despite China's goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers," the commerce ministry said in a separate statement on Sunday.
Live Events
"Therefore, China has no choice but to adopt reciprocal restrictive measures."
The EU delegation office in Beijing did not immediately respond to a request for comment.
China will also restrict imports of medical devices from other countries that contain EU-made components worth more than 50% of the contract value, the finance ministry said. The measures come into force on Sunday.
The commerce ministry said products from European companies made in China were not affected.
The world's second- and third-largest economies are due to hold a leaders' summit in China later in July.
On Friday, China also announced duties of up to 34.9% for five years on brandy originating in the European Union, most of it cognac from France, after concluding an investigation largely believed to be a response to Europe's EV tariffs.
Major cognac producers Pernod Ricard, LVMH and Remy Cointreau were spared from the levies, however, provided they sell at a minimum price, which China has not disclosed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
9 minutes ago
- Economic Times
The more deals Trump gets, the more confidence markets gain
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The world's investors are enjoying a confidence boost after months of uncertainty as President Donald Trump finally starts signing trade stocks extended a record, risk-sensitive currencies strengthened and bonds fell after a trade agreement with Japan contained lower tariffs than Trump had threatened earlier this month. The big picture takeaway seems to be a light at the end of a negotiating tunnel that will further fuel investor optimism that the worst of their fears on trade are behind a major trading partner, the Japan deal is potentially a big step forward toward the conclusion of tariff-related uncertainties, according to Jane Foley, head of FX strategy at Rabobank.'Overall the deal will justify the market's rolling back of the fears related to US recession and inflation seen earlier in the year and should help support risk appetite,' she said. 'It raises pressure on the European trade negotiators, though at the same time it will also raise hope that they can still pull something out of the bag ahead of the deadline.'The deal with Japan sets tariffs on the nation's imports at 15%, including for autos — by far the biggest component of the trade deficit between the two countries. A separate agreement with the Philippines set a 19% rate, the same level as Indonesia agreed and a percentage point below Vietnam's 20% baseline level, signaling that the bulk of Southeast Asia is likely to get a similar the deals, effective tariff rates still remain much higher than at the beginning of the year, but below the more punitive rates suggested Topix Index rallied more than 3% to hit a one-year high, with Toyota Motor Corp. surging as much as 16%, the most since 1987. Hopes that the deal could pave the way for an agreement in Europe also boosted shares in the region, with Europe's Stoxx 600 gauge rising 1.2%, the most in a month, led by automakers such as Porsche, Volkswagen and Stellantis, each up more than 6%.Shares in other sectors such as pharma and construction — which have a big exposure to the US market — also rallied on Wednesday, while the yield on US 10-year Treasuries rose three basis points to 4.38%, halting five days of Auto Stocks Set for One of Best Days in 2025 | Porsche, Stellantis and Volkswagen among key gainersEarlier this year, Trump's rapidly-shifting tariff policies sent global markets spiraling amid recession fears and worries about the outlook for US equities, bonds and even the status of the dollar as the world's reserve currency. But risk assets have rebounded as investors saw signs of progress in negotiations and the greenback has steadied.'Since this news counters the 'Sell America' trade that was exhibited in the first 5 months of the year, if should help support short-covering in the dollar,' Rabobank's Foley deal might be setting a precedent for trade negotiations happening with Europe, according to Fabien Yip, a market analyst at IG in Australia. That will provide some optimism for global markets in their expectations for what will eventually happen with Europe and China, she said.'It looks like Trump has been making a few concessions with several key trading partners, including Vietnam, Indonesia, and now Japan,' Yip said. 'So the deal today will be quite meaningful for the global rally.'With a deal with Beijing still a key factor for the global economy, US Treasury Secretary Scott Bessent will meet his Chinese counterparts in Stockholm for their third round of trade talks aimed at extending a tariff truce and widening the discussions. European Union and US negotiators are still in intensive talks, as they seek to clinch a trade deal by Aug. 1.'Collectively, this more positive trade news has really helped to ease investor fears that tariffs are about to snap back higher on August 1,' wrote Deutsche Bank AG's Jim Reid in a note to clients. 'But of course, the threat of much higher tariffs still remains for several large economies, including the 30% on the EU, 35% on Canada and 50% on Brazil.'Mohit Kumar, the chief European strategist at Jefferies International sees trade agreements signed in the near term with the rest of the US's key trading partners.'While a negative from a macro point of view, the world can live with 15% or so tariffs,' he said.
Time of India
9 minutes ago
- Time of India
Chinese automakers gain ground in contracting European market, data shows
Car registrations across Europe declined in June, with a 4.4% year-on-year drop to 1.25 million vehicles, data from Jato Dynamics showed on Wednesday. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. While overall demand softened, Chinese automakers continued to gain ground, taking a record market share and squeezing several established European brands, the research data showed. WHY IT'S IMPORTANT Chinese automakers are expanding in Europe, breaking into a market traditionally dominated by European and American brands supported by their cheaper pricing amid a shift towards electric vehicles . This has stoked trade tensions between Brussels and Beijing, including a row over EU tariffs on Chinese-made EVs, imposed to protect European producers. BY THE NUMBERS Chinese brands nearly doubled their combined share of the European market to 5.1% in the first half of 2025, just shy of Mercedes-Benz's 5.2per cent, the report said. Registrations of Chinese vehicles surged 91% since the start of the year. BYD , Jaecoo, Omoda, Leapmotor and Xpeng were the five names fuelling the surge, with BYD alone registering 70,500 units in the first six months of 2025, a 311per cent jump from a year ago. Stellantis saw the steepest market share decline among major automakers, to 15.3% from 16.7% a year earlier. The second biggest decline came from Tesla , to 1.6% in the half-year period versus 2.4% last year. Registrations of battery electric vehicles (BEV) surpassed one million for the first time in the first half, with a 25per cent rise to 1.19 million units — 17.4per cent of the market. KEY QUOTES "Persistently high prices, geopolitical and economic tensions with Europe's trading partners, and the postpandemic market reality are behind the decline," Felipe Munoz, global analyst at JATO Dynamics, said. "The updated Tesla Model Y has so far failed to provide the expected sales boost for the brand," Munoz said. "At the same time, competition from BYD and Volkswagen Group is making it harder for Tesla to maintain its leadership position."
News18
25 minutes ago
- News18
Global markets gain, deal on Trumps tariffs lifts Japans Nikkei 3.5 per cent
Tokyo, Jul 23 (AP) Global shares rallied on Wednesday, with Tokyo's benchmark Nikkei 225 index gaining 3.5 per cent after Japan and the US announced a deal on President Donald Trump's tariffs. France's CAC 40 added 1.4 per cent in early trading to 7,854.75, while Germany's DAX gained 0.9 per cent to 24,260.62. Britain's FTSE 100 rose 0.6 per cent to 9,075.46. The future for the S&P 500 gained 0.4 per cent while that for the Dow Jones Industrial Average was up 0.5 per cent. The tariff agreement as announced calls for a 15 per cent US import duty on goods from Japan, apart from certain products such as steel and aluminum that are subject to much higher tariffs. That's down from the 25 per cent Trump had said would kick in on August 1 if a deal was not reached. 'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it," Trump posted on Truth Social, noting that Japan was also investing 'at my direction" USD 550 billion into the US. He said Japan would 'open" its economy to American autos and rice. Japan's benchmark Nikkei 225 surged as much as 3.7 per cent, closing at 41,171.32. Hong Kong's Hang Seng jumped 1.6 per cent to 25,538.07, while the Shanghai Composite index was little changed, gaining less than 0.1 per cent to 3,582.30. Australia's S&P/ASX 200 edged up 0.7 per cent to 8,737.20 and the Kospi in South Korea edged 0.4 per cent higher to 3,183.77. 'President Trump has signed two trade deals this week with the Philippines and Japan which is likely to keep market sentiment propped up despite deals with the likes of the EU and South Korea remaining elusive, for now at least," Tim Waterer, chief market analyst at Kohle Capital Markets, said in a report. There was a chorus of no comments from the Japanese automakers, despite the latest announcement, including Toyota Motor Corp, Honda Motor Co and Nissan Motor Corp. Japanese companies tend to be cautious about their public reactions, and some business officials have privately remarked in off-record comments that they hesitate to say anything because Trump keeps changing his mind. The Japan Automobile Manufacturers' Association also said it had no comment, noting there was no official statement yet. Japan's Prime Minister Shigeru Ishiba welcomed the agreement as beneficial to both sides. Toyota stock jumped 14 per cent in Tokyo trading, while Honda was up more than 11 per cent and Nissan added 8 per cent. In other sectors, Nippon Steel, which is acquiring US Steel, rose 2.7 per cent while video game maker and significant exporter Nintendo Co added 0.7 per cent. Sony Group surged 4.3 per cent. But Takeshi Niinami, chairman of the Japan Association of Corporate Executives, which groups about 1,600 top executives, issued a note of caution about the nation having to be resilient and pushing free trade, while welcoming the tariff deal. 'I hope this US-Japan tariff deal can work as a starting point to further strengthen US-Japan relations," he said. He noted the US policy of putting America first was unlikely to change, and that meant Japan, too, must make policy adjustments, such as making an aggressive push in artificial intelligence. Trump has also said that he reached a trade agreement with the Philippines following a meeting Tuesday at the White House, that will see the US slightly drop its tariff rate for the Philippines without paying import taxes for what it sells there. On Tuesday, the S&P 500 added 0.1 per cent to Monday's all-time high. The Dow Jones Industrial Average rose 0.4 per cent, while the Nasdaq slipped 0.4 per cent. Also early Wednesday, US benchmark crude oil lost 23 cents to USD 65.08 a barrel. Brent crude, the international standard fell 21 cents to USD 68.38 a barrel. The US dollar fell to 146.38 Japanese Yen from 146.64 Yen. The Euro cost USD 1.1736, down from USD 1.1754. (AP) SKS NPK NPK view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
