US-China trade war notably affects biz confidence of EuroCham members
Insights Though there has been a relatively limited direct impact of the recent escalation of US-China tariffs and trade measures on members of the EU Chamber of Commerce in China, the trade war has resulted in significantly heightened uncertainty for firms operating in China, a survey revealed.
Over two-thirds of respondents said they have been unaffected by such tariffs.
Though there has been a relatively limited direct impact of the recent escalation of US-China tariffs and trade measures on members of the European Union (EU) Chamber of Commerce (EuroCham) in China, the trade war has resulted in significantly heightened uncertainty for companies doing business in China, an online survey revealed.
EuroCham members are most affected by China's tariffs on US goods, with almost half of respondents reporting this to be the case.
Though there has been a relatively limited direct impact of the recent escalation of US-China tariffs and trade measures on members of the EU Chamber of Commerce in China, the trade war has resulted in significantly heightened uncertainty for firms operating in China, a survey revealed. Over two-thirds of respondents said they have been unaffected by such tariffs.
By contrast, over two-thirds of respondents stated that they have been unaffected by US tariffs on imports from China. This can be attributed to the 'in China, for China' approach that many Chamber members have adopted, a release from the chamber, which conducted the flash survey, noted.
The trade war has significantly affected business confidence, however, with 59 per cent of respondents stating that doing business has become more difficult since 2025 began, more than 60 per cent expecting intensified competition and 58 per cent concerned about future profits.
While 57 per cent of respondents reported that their business strategy has not changed, they continue to monitor the situation. Of those that have already taken action, 17 per cent are making changes to their sourcing, 14 per cent are delaying investments or expansion plans in China and an equal percentage are looking to increase their investments in the country.
'It is difficult to overstate how much uncertainty this trade war has created for our members,' said Jens Eskelund, president of the chamber. 'But we believe that China can turn crisis into opportunity and demonstrate that it is a stable and predictable investment destination.'
Fibre2Fashion News Desk (DS)
Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.
Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
36 minutes ago
- Business Standard
Xi's message to Trump: Rein in the hawks trying to derail the truce
By Daisuke Wakabayashi and Berry Wang During his phone call with President Trump, Xi Jinping leaned on a maritime analogy to try to salvage the fragile trade truce that seemed to be fracturing from a series of escalating punitive economic measures. The Chinese leader compared the relationship between the United States and China to a large ship, with the two men serving as powerful captains holding the rudder firmly to maintain the proper course. The analogy also came with a warning. Do not let others steer the ship off course and jeopardize the relationship. For weeks, the White House seemed to openly lobby for a direct conversation between the two leaders — a point underscored by China stating that Mr. Xi had agreed to the call on Thursday at Mr. Trump's behest. With the United States ratcheting up the pressure on Beijing with technology and other restrictions, China may have acquiesced partly out of concern in Beijing that the China hawks in Mr. Trump's administration were succeeding in undermining the truce, analysts said. 'China is quite concerned about this,' said Wu Xinbo, the dean of the Institute of International Studies at Fudan University in Shanghai. 'There has to be communication at the leadership level to stop the momentum of the rapid deterioration of the US-China relationship.' The call between Mr. Trump and Mr. Xi came at an especially precarious moment. Less than one month after the two countries agreed to roll back punishing tariffs for 90 days and negotiate a trade deal, the truce seemed to be crumbling. Want to stay updated on what's happening in China? Sign up for Your Places: Global Update, and we'll send our latest coverage to your inbox. China continued to throttle the exports of rare earth minerals, throwing the supply chains of US manufacturers into disarray. In response, the United States imposed restrictions on the sale of chip design software to China. It barred American companies from using artificial intelligence chips from the Chinese technology giant Huawei. It suspended some sales to China of components and software used in jet engines. In addition, the Trump administration proposed a plan to revoke visas for some Chinese students. Yun Sun, director of the China program at the Stimson Center, a Washington think tank, said China saw an opportunity to use 'top leader diplomacy' to send this message to Mr. Trump directly: 'Hold off your hawks. The responsibility is on the top leaders. If you want a good relationship, don't let your cabinet members or team run freely with their crazy ideas.' Mr. Wu, of Fudan University, said the measures taken by the United States since last month's trade agreement demonstrated how different members of the Trump administration were pursuing their own agendas, pointing to the Commerce Department imposing export controls and the State Department saying it would revoke visas. China has maintained a tough posture, refusing to back down in response to Mr. Trump's tariffs, unlike other countries that have treaded carefully so as not to antagonize the United States. In April, before the truce, Beijing engaged in a tit-for-tat tariff escalation, raising import duties on American goods to 125 percent after the United States pushed its taxes on Chinese imports to 145 percent. China appears ready to withstand the hardship from a prolonged trade war with the United States, with the economic levers to make life equally difficult for Americans and test Mr. Trump's resolve. At the same time, China has its own economic vulnerabilities and probably wants to avoid a full decoupling with the United States. The country's economy is struggling to rebound from a real estate crisis. Already grappling with high levels of youth unemployment, China's manufacturing sector, a key provider of jobs, could bear the brunt of a trade war that closes off the US market and escalates fears in the rest of the world about the flood of inexpensive Chinese imports. China had resisted overtures from Mr. Trump for direct engagement with Mr. Xi for months, reflecting Beijing's cautious approach. Mr. Xi may have accepted such a call now to buy his government more time to prepare for a prolonged fight. The two leaders seemed to take away different things from the call. In a post on social media, Mr. Trump implied that they had resolved the dispute over the export of critical minerals, but China's readout mentioned no such thing. China's official summary included a warning from Mr. Xi to Mr. Trump that the United States should handle the Taiwan issue 'prudently' to prevent a dangerous conflict, while Mr. Trump characterized the call as being focused almost entirely on trade. China has responded angrily to remarks by Defense Secretary Pete Hegseth last week urging America's Asian allies to work with the United States to deter China from trying to seize Taiwan, a self-governed island democracy. Mr. Trump and Mr. Xi did agree that both sides would work once again to implement the agreement from last month and that further talks for a more permanent deal would proceed. Mr. Trump also said the talks with China will now include Commerce Secretary Howard Lutnick, in addition to Treasury Secretary Scott Bessent and Jamieson Greer, the US Trade Representative. And Mr. Xi urged the United States to withdraw 'negative measures' against China. To some extent, China could claim a win from the call, as Mr. Trump seemed to soften his administration's stance on Chinese student visas. Last week, Secretary of State Marco Rubio, one of Mr. Trump's hawkish advisers, said the United States would 'aggressively' revoke the visas of Chinese students, specifically those associated with the Communist Party or studying in critical fields. But Mr. Trump, on Thursday, rolled out the red carpet. 'Chinese students are coming. No problem,' Mr. Trump said during a briefing from the Oval Office. 'It's our honor to have them.' Before the call, Mr. Trump wrote on social media that Mr. Xi was 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH.' In his summary of the call, Mr. Trump sounded gracious, noting that the two leaders had invited each other to visit their respective countries. Scott Kennedy, a senior adviser at the Center for Strategic and International Studies, a Washington research group, said the call could signal that the two countries had shifted into a 'fragile equilibrium' after having demonstrated their willingness to turn up the pressure on each other. Mr. Kennedy noted that China is the only country to win concessions from the United States since Mr. Trump launched his global 'reciprocal' tariff campaign in April. 'I think they feel they probably figured Trump out and that this is a manageable relationship,' he said. 'If this agreement falls apart again, they know what buttons to push to make the Trump administration take notice.'
Time of India
an hour ago
- Time of India
Tariffs May Impact Growth of US Cardiovascular Device Market: GlobalData
Data and analytics company GlobalData has stated that US-imposed tariffs introduced during the Trump administration are disrupting global supply chains and could impact the growth of the country's cardiovascular device market . According to the company, pulsed field ablation (PFA) systems often manufactured overseas for reasons of cost and material access are now subject to higher tariffs, leading to increased costs and uncertainty for hospitals and manufacturers. The company states that the electrophysiology market has seen significant growth in recent years, driven by advances in medical device technology. In the past year, PFA systems have rapidly gained ground, replacing other advanced electrophysiology tools. Some PFA systems have gained market traction in recent years, driven by factors such as shorter procedure times, improved clinical outcomes, and enhanced safety for patients. Boston Scientific and Medtronic have both reported strong performance in their cardiovascular portfolios, with PFA systems contributing to this growth. David Beauchamp, Medical Analyst at GlobalData, noted that continued US tariffs could dampen the strong growth of the cardiovascular device market. With the US being the largest market and PFA systems still limited to a few countries due to regulatory constraints, manufacturers may face a choice between absorbing higher costs or increasing prices. GlobalData estimates the US PFA market to be worth $535.9 million in 2024, with a projected compound annual growth rate (CAGR) of 31.65 per cent through 2034. This outlook may be affected by tariff-related cost pressures within the medical device supply chain. 'In very high-growth markets, including the PFA market, supply chain disruption and manufacturing cost increases may result in healthcare providers preferring other, cheaper options, which could result in possible slowdown for the growth of PFA systems,' said David Beauchamp
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Musk's Starlink gets licence to offer satellite internet services in India
The government has granted a licence to Elon Musk 's Starlink to operate satellite internet services in India, more than two years after the US-based company applied for it, officials in the Department of Telecommunications (DoT) said. Starlink now officially joins Airtel-backed Eutelsat OneWeb and Jio Satellite Communications Ltd in India's satellite communications (satcom) race. The company can begin marketing its services and open customer registrations in India, they added. The Global Mobile Personal Communication by Satellite (GMPCS) licence, required to offer satellite-based broadband services in India, was granted to Starlink exactly a month after it received a Letter of Intent (LoI) from the DoT on 7 May, officials said. The company can now apply for trial spectrum to test its technology and is expected to receive allocation within 15–20 days of submitting its application. It was not immediately clear whether Starlink had also received the final clearance from the Indian National Space Promotion and Authorisation Centre (IN-SPACe). Amazon's Project Kuiper remains the last major satcom contender yet to secure a greenlight from the Indian authorities. Starlink currently provides satellite internet services in over 125 countries through a constellation of more than 7,600 low Earth orbit (LEO) satellites operated by SpaceX, the aerospace and satcom company founded by Musk. In April, Starlink received provisional registration from Pakistan's space regulator, with Islamabad expressing hope that full clearance would be granted by end-2025. In May, Bangladeshi telecom authorities issued the necessary licences to the company, following Bhutan's lead—it became the first country in the subcontinent to get Starlink connectivity in February. In April, telecom majors Bharti Airtel and Reliance Jio announced separate agreements with Starlink to distribute its equipment and services to their respective customer bases in India. Currently the world's largest space-based communications network, Starlink has increasingly focused on providing services in developing and low-income countries. Earlier this week, it launched operations in the Democratic Republic of the Congo. Surge in action Starlink's application for a GMPCS licence had been under review since November 2022. It was delayed due to the company's failure to comply with mandatory ownership disclosure norms regulated by the Department for Promotion of Industry and Internal Trade (DPIIT). The company had also clashed with Indian authorities over requirements that satcom licensees provide call data records to security agencies upon request and suspend services during national emergencies if directed by the government. Last month, the DoT introduced a more stringent regulatory regime for satcom services in India, leading many industry analysts to write off Starlink's chances of gaining clearance in the near term. The new security rules mandate separate clearances for each satellite gateway in India, localisation of all lawful interception capabilities, and special protocols to allow targeted services during periods of conflict. However, in a surprise development, Starlink was granted the LoI just two days after the directive was issued, having committed to comply with all regulatory conditions. Two days later, the Telecom Regulatory Authority of India (Trai) released its long-awaited recommendations on pricing and allocation guidelines for satellite spectrum. These recommendations have drawn criticism from telecom operators, who said the proposal to charge satellite spectrum at 4 per cent of adjusted gross revenue (AGR) is 'unjustifiably low' and 'based on incorrect assumptions'. Operators argue that Trai's stance undermines competition and risks distorting the level playing field by favouring satellite firms while threatening the viability of traditional terrestrial services.
