Latest news with #EU-China
Nikkei Asia
5 hours ago
- Business
- Nikkei Asia
EU, China trade chiefs to hold 4th round of talks in June
BRUSSELS (Reuters) -- European Union trade chief Maros Sefcovic and Chinese Commerce Minister Wang Wentao agreed to hold a fourth round of trade talks this month ahead of an EU-China summit in July, a European Commission spokesperson said on Tuesday. Sefcovic met Wang on the sidelines of an Organisation for Economic Co-operation and Development ministerial meeting in Paris earlier on Tuesday.
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Business Standard
6 days ago
- Business
- Business Standard
European businesses report record-low optimism in China: Survey
Confidence among European businesses operating in China has fallen to a record low, according to the European Union Chamber of Commerce's annual survey released on Wednesday. The survey, based on responses from 503 member companies conducted in January and February, highlights growing concerns even before US-China trade tensions escalated further in April. Only 29 per cent of respondents said they were confident about growth prospects in China over the next two years, the lowest level since 2013. An equal 29 per cent expressed outright pessimism, the highest in the survey's history. Optimism regarding profitability dropped three percentage points from last year to just 12 per cent, another historic low. In contrast, 49 per cent expressed pessimism—setting a new record. EU firms urge China to enact promised reforms The EU Chamber of Commerce urged the Chinese government to fully implement newly announced reforms aimed at improving conditions for foreign businesses. Jens Eskelund, president of the Chamber, noted that concerns over China's domestic economy and persistent producer-price deflation were weighing heavily on both European and Chinese firms. 'Uncertainty resulting from escalating trade and geopolitical tensions, concerns about China's domestic economy, and persistent producer-price deflation weigh on the minds of both European and Chinese companies,' Eskelund said. Barriers to market access persist The survey also found that market access and regulatory hurdles remain ongoing challenges. About one-third of respondents said they do not expect significant progress in this area—unchanged from last year's sentiment. Beijing has promised to maintain an open market for foreign businesses. In February, it approved a new policy framework to attract overseas investment, removing restrictions on foreign manufacturing investments and expanding industries open to foreign firms. China's slowdown cited as top risk Of those surveyed, 71 per cent listed China's economic slowdown as one of the top three risks to their operations in the country. This was followed by US-China tensions and regional geopolitical conflicts. 'A new, more fragmented globalisation is taking shape, while China's economy is stabilising with slower growth and greater competition—signalling transformation rather than decline,' said Denis Depoux, global managing director of Roland Berger, which co-conducted the survey. He emphasised that companies must adapt by localising operations and forming stronger partnerships with domestic firms. Rising EU-China trade friction The report also noted intensifying trade tensions between the EU and China, with both sides launching multiple trade investigations in recent months. Eskelund highlighted the impact of China's April export controls on critical minerals, which have disrupted production across hundreds of European operations. 'A number of companies in Europe will be running out of some of these minerals and production this week,' Eskelund said.
Yahoo
23-05-2025
- Business
- Yahoo
China Gives EU Business Groups High-Level Meetings
(Bloomberg) -- China is giving European business leaders its warmest welcome in years, in an effort to strengthen ties as Beijing seeks to counter Donald Trump's tariff pressure and stabilize its slowing economy. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? NYC's War on Trash Gets a Glam Squad Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt UAE's AI University Aims to Become Stanford of the Gulf The Chinese government in recent weeks has offered delegations rare, unscripted access to senior policymakers and showered them with assurances of improved conditions, according to European business groups. After years expressing their discontent over limited access to Chinese authorities, business leaders are getting better meetings as President Xi Jinping makes a broader bid to deepen economic ties with the European Union and other economies to combat the impact of America's most disruptive tariff regime in nearly a century. In a rare sign of a thaw, Xi on Thursday replied to a letter from the founder of the Danish Chamber of Commerce in China, encouraging its member companies to make new contributions to enhance bilateral ties. China is an ideal, safe and promising destination for foreign investors, he wrote. 'Definitely, we are having a very high-level engagement right now,' said Jens Eskelund, president of the EU Chamber of Commerce in China. 'It's clear that there's a high degree of willingness to engage with the business community.' Eskelund noted similar outreach efforts post-Covid as local governments sought foreign investment, but described a newfound Chinese willingness to discuss possible solutions to challenges European companies face in China. 'Promise Fatigue' Beijing's apparent shift in tone comes as Xi looks to diversify trade ties to blunt the impact of US tariffs that are projected to wipe out a majority of Chinese exports to the country even after the recent truce. Earlier this month, Xi urged EU leaders to oppose unilateralism and promote inclusive economic globalization, a veiled rebuke of Washington. The same day, China publicly confirmed for the first time it was suspending sanctions imposed in 2021 against five European lawmakers that had hampered mutual exchanges in a gesture of goodwill, if largely symbolic. Despite these overtures, skepticism remains ingrained among European trade officials. Jorge Toledo, the EU's top envoy to China, has repeatedly voiced dissatisfaction with Beijing's treatment of the EU and European firms. At an event in Shanghai in early May, he accused Beijing of ignoring the EU's concerns over trade barriers for two decades. 'Something is wrong, we must recognize it and we must examine how to fix it,' Toledo said. Wendy Cutler, a former senior US trade negotiator now at the Asia Society Policy Institute, said Washington's policies created an opening for improved EU-China relations. But she pointed out there remains substantial disputes on matters including massive state support for Chinese companies competing with European firms, which EU officials have criticized as an unfair practice. 'While modest improvements are likely, a major reset in EU-China relations is not in the cards,' she said. Fueling this caution is what foreign investors have often described as 'promise fatigue' by the world's second-largest economy. China's widening trade surplus with the EU, hitting a record $90 billion in the first four months of this year, only amplifies concerns that the bloc could become a dumping ground for cheap Chinese goods, particularly as US tariffs divert trade flows. In an interview with Bloomberg TV last week, the EU's economy chief urged China to show 'some self restraint' in terms of diverting goods to avoid triggering actions to protect domestic markets and companies. The EU already imposes steep tariffs on imports of Chinese electric vehicles, alleging that state subsidies gave them an unfair advantage. On Monday, China's Foreign Minister Wang Yi told his German counterpart Johann Wadephul he hoped for the speedy resolution of the dispute to boost China-EU relations. The EV probe, to which Beijing responded with an anti-dumping investigation of EU brandy exports, underscores tensions between their partnership and rivalry. That further muddies the business environment for European firms in China that are already grappling with weak consumer demand and intensifying competition from domestic players. 'The biggest obstacles of deepening economic ties lie in Europe's anxiety from the decline of the bloc's competitiveness,' said Wang Yiwei, professor of international relations at Renmin University and a former Chinese diplomat in Europe. 'China and Europe's economic relations have shifted from one of complementary to one of systemic competition.' --With assistance from Martin Ritchie, Jorge Valero, Chunying Zhang, Amber Tong, Shirley Zhao, Danny Lee and James Mayger. (Removes comments from Inaki Amate, chairman of the European Chamber of Commerce in Hong Kong, in third, fourth and fifth paragraphs after he retracted the remarks, saying they were inaccurate.) 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Business Standard
15-05-2025
- Business
- Business Standard
Trump or not, the EU has no plans to revive 2020 investment deal with China
The European Union has categorically ruled out any revival of the stalled Comprehensive Agreement on Investment (CAI) with China, with a top EU official stating there is 'absolutely no intention' to reinitiate negotiations, even as Beijing signals openness to rekindling economic ties. Marjut Hannonen, head of trade at the EU delegation in Beijing, made the remarks during a panel discussion marking 50 years of diplomatic relations between the EU and China, reported the South China Morning Post (SCMP). Speaking at the EU-China forum on May 14, Hannonen said relations had 'steadily deteriorated' over the past two decades, pointing to increasing market barriers and what the EU sees as unfair trade practices from China. What is the Comprehensive Agreement on Investment between EU and China? The CAI, finalised in 2020 but never officially signed, was once hailed as a landmark economic agreement to deepen investment flows between Brussels and Beijing. But the deal hit a deadlock in 2021 after the European Parliament froze it in response to retaliatory sanctions from China over the EU's criticism of alleged human rights abuses in Xinjiang—claims that Beijing continues to deny. Under the agreement, China had pledged to provide fairer treatment to European Union companies, enabling them to compete more equally within the Chinese market. The commitments included measures related to state-owned enterprises, greater transparency around subsidies, and safeguards against forced technology transfers. China also accepted provisions on sustainable development, including commitments addressing climate change and the issue of forced labour. Additionally, both parties agreed to continue negotiations on investment protection and dispute resolution, with a target to conclude these discussions within two years of the agreement's signing. China's quiet lobbying for CAI restart met with EU resistance Since the deal fell through, Chinese officials have lobbied quietly to restart the dialogue, including overtures from Fu Cong, China's former ambassador to the EU. Last month, China lifted sanctions on five Members of the European Parliament and the subcommittee on human rights—a move widely seen as an olive branch. Yet EU officials remain unconvinced. 'We have quite some issues with China to address,' Hannonen noted, urging focus on existing trade barriers, market access limitations, and industrial overcapacity rather than revisiting the shelved investment pact. EU flags Chinese overcapacity in EVs, solar and steel as major concern Among the most pressing concerns voiced by the EU is China's industrial overcapacity, particularly in sectors such as electric vehicles (EVs), steel, and solar panels. European leaders argue that state subsidies in China allow firms to export products at artificially low prices, undercutting local industries and creating a growing trade imbalance. 'The overcapacity problem is huge, it's growing, it's massive and it goes across the sectors,' Hannonen said, according to SCMP. 'On the other hand, they are just doubling down on more manufacturing capacity.' The EU has already responded with defensive trade measures. In 2024, Brussels imposed significant tariffs on Chinese-made EVs, citing anti-subsidy concerns. Beijing retaliated with countermeasures, escalating trade tensions further. However, in an attempt to ease the ongoing friction, a new proposal has reportedly emerged where China would set a floor price on EV exports to Europe in return for a softening of EU duties. The deal could also involve Chinese investment in the European EV supply chain, creating local jobs and facilitating technology transfer, according to EU sources quoted in the report. EU caught between US pressure under Trump and Chinese diplomacy The EU's strategies are further complicated by its positioning between the United States under Donald Trump and China, two rival powers increasingly locked in economic and technological competition. According to diplomats cited by the South China Morning Post, the EU faces a 'high-wire act' in balancing its interests. While Washington has urged allies to decouple from Chinese supply chains, Europe fears being left isolated if Beijing and Washington strike a bilateral breakthrough. Although Beijing recently lifted sanctions on some EU lawmakers, others—including researchers and diplomats—remain blacklisted. The partial rollback has not restored trust.
Yahoo
15-05-2025
- Business
- Yahoo
Trump is pushing the EU and China closer. Is this a full reset, or just strategic readjustment?
The EU and China have, historically, had a complex relationship. This was encapsulated in the European Commission's 2019 EU-China strategic outlook, which referred to China as both a 'strategic partner', but also an 'economic competitor' and 'systemic rival promoting alternative models of governance'. Since the outlook's publication, tensions have only increased between the two powers. More recently, disagreements over China's responsibility for the origin of the COVID pandemic and China's position on the war in Ukraine have contributed significantly to the worsening of the relationship. However, Donald Trump's return to the White House is a potentially game-changing development. The US president's ongoing trade war, which targets both the EU and China, could lead these actors to a rapprochement that would allow them to better resist Washington's onslaught. Many analysts are now pointing to a 'reset' in EU-China relations, but the situation is anything but clear cut. Leer más: The idea of a sudden 'reset' in EU-China relations is dubious on at least two fronts. Firstly, the EU's pursuit of renewed relations with China is not solely a consequence of the new US administration's policies. It has been ongoing for at least two years, as Ursula von der Leyen and Emmanuel Macron travelled to China in April 2023 with the explicit goal of a 'reset' in relations. Secondly, a strategy of rebalancing towards China vis-à-vis the US was already being weighed up by the European Union as far back as 2017, during the first Trump Administration, though this push failed to produce any significant results. In order to properly assess the chances of a far-reaching change in EU-China relations, two questions must be asked: to what extent is this a real change and not just rhetoric? And what is each of the two actors willing to concede in order to improve the relationship? China regards the EU as weak and divided and, contrary to the EU's aspirations, continues not to take it seriously. Consequently, China believes that a few declarations and symbolic gestures – such as lifting the sanctions it imposed on MEPs and their families in retaliation for EU sanctions imposed on China for human rights violations in Xinjiang – will be enough to send the EU, desperate in the face of US policies, into China's waiting arms. Confirmation of this attitude can be seen in China's recent appointment of Lu Shaye – known for his tough 'wolf warrior' style of diplomacy when serving as ambassador to France – as Special Envoy for Relations with Europe. For Brussels, there are various issues preventing the possibility of a clean slate in relations with China, not least the increasingly close ties between Beijing and Moscow, which were bolstered by Xi Jinping's recent attendance at Russia's Victory Day military parade in Moscow on May 9. China's contribution – both by action and omission – to Russia's invasion of Ukraine is one of many other obstacles that will be difficult to overcome. The diplomatic strain is evident at the highest levels of the EU. High Representative of the European Union for Foreign Affairs and Security Policy, Kaja Kallas, has unequivocally stated that 'China is the key enabler of Russia's war'. Leer más: In its dealings with China, Brussels ought to take a pragmatic and calculated approach that allows it to compensate, even if only partially, for the problems arising from the Trump administration's trade policy, but without renouncing its values and interests. Moreover, the European Union remains aware of the risks associated with Chinese investment in strategic and high-tech sectors, as well as of the risks associated with those sectors and activities which could endanger data protection. In the case of the EU, what we are seeing is therefore not a radical shift but a tactical adjustment. The idea is to introduce a relaxation of language – the Commission now speaks of a 'transactional' relationship and 'constructive engagement' with China – and to build a relationship that grants the EU more options and room for manoeuvre in its dealings with the US. This must all be done, however, without abandoning the logic of derisking in the continent's relationship to China. Este artículo fue publicado originalmente en The Conversation, un sitio de noticias sin fines de lucro dedicado a compartir ideas de expertos académicos. Lee mas: Russia-China ties on full display on Victory Day – but all is not as well as Putin is making out To split Moscow from Beijing, Trump is reviving Nixon's 'madman diplomacy'. It could backfire badly The US and China have reached a temporary truce in the trade wars, but more turbulence lies ahead Gracia Abad Quintanal no recibe salario, ni ejerce labores de consultoría, ni posee acciones, ni recibe financiación de ninguna compañía u organización que pueda obtener beneficio de este artículo, y ha declarado carecer de vínculos relevantes más allá del cargo académico citado.
