Latest news with #EUChamber
Yahoo
6 days ago
- Business
- Yahoo
China Blinks? Rare Earth Lifeline May Be Coming for Tesla and Europe's Chipmakers
China might be loosening its grip on rare earth exports, just weeks after throwing a wrench into global supply chains with sweeping new licensing rules. Following pressure from semiconductor firms in both China and Europe, Beijing held a closed-door meeting this week to hear out mounting frustrations. The outcome? State media is now floating the possibility that companies critical to the chip industry could get a faster lane through export controlsthough no formal pivot has been announced yet. Back in April, China added seven rare earths and related products to its export control list, forcing all exporters to apply for licensesno matter where the goods were headed or who the buyer was. A few approvals have trickled through since then, mostly for rare earth magnets used in EVs, chips, and defense. But the process has proven slow and confusing, with some applications stuck in customs for months. The European Chamber of Commerce says the delays could soon bring parts of the continent's high-tech manufacturing to a grinding halt. That's why this potential easing matters. Tesla (NASDAQ:TSLA), for instance, relies heavily on rare earths for its electric drivetrainsand so do European fabs trying to meet production targets. Jens Esklund, who leads the EU Chamber in China, didn't mince words: without faster approvals, many European production lines will come to a halt. If Beijing follows through, it could offer much-needed breathing room for chipmakers and automakers alike. Investors will be watching closelynot just for policy changes, but for clues about how China plans to balance control with commerce. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
6 days ago
- Business
- Yahoo
China Blinks? Rare Earth Lifeline May Be Coming for Tesla and Europe's Chipmakers
China might be loosening its grip on rare earth exports, just weeks after throwing a wrench into global supply chains with sweeping new licensing rules. Following pressure from semiconductor firms in both China and Europe, Beijing held a closed-door meeting this week to hear out mounting frustrations. The outcome? State media is now floating the possibility that companies critical to the chip industry could get a faster lane through export controlsthough no formal pivot has been announced yet. Back in April, China added seven rare earths and related products to its export control list, forcing all exporters to apply for licensesno matter where the goods were headed or who the buyer was. A few approvals have trickled through since then, mostly for rare earth magnets used in EVs, chips, and defense. But the process has proven slow and confusing, with some applications stuck in customs for months. The European Chamber of Commerce says the delays could soon bring parts of the continent's high-tech manufacturing to a grinding halt. That's why this potential easing matters. Tesla (NASDAQ:TSLA), for instance, relies heavily on rare earths for its electric drivetrainsand so do European fabs trying to meet production targets. Jens Esklund, who leads the EU Chamber in China, didn't mince words: without faster approvals, many European production lines will come to a halt. If Beijing follows through, it could offer much-needed breathing room for chipmakers and automakers alike. Investors will be watching closelynot just for policy changes, but for clues about how China plans to balance control with commerce. This article first appeared on GuruFocus.
Bloomberg
7 days ago
- Business
- Bloomberg
European Firms Lose Confidence in China Operations, Survey Shows
European companies operating in China are the most pessimistic about growth prospects since 2011, a new survey shows. Some 29% of respondents were downbeat on the outlook for their sector over the next two years, according to an annual report published on Wednesday by the European Union Chamber of Commerce in China.
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Business Standard
7 days ago
- Business
- Business Standard
As European economy slows, companies scale back investments in China
European companies are cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices, according to an annual survey released Wednesday. Their challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. "The picture has deteriorated across many key metrics," the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets. In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidised electric vehicle production. "I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner," Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. He applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. "It is just very difficult for everyone right now in an environment of declining margins," he said.
Asharq Al-Awsat
7 days ago
- Business
- Asharq Al-Awsat
European Companies Cut Costs, Scale Back Investments in China as its Economy Slows
European companies are cutting costs and scaling back investment plans in China as its economy slows and fierce competition drives down prices, according to an annual survey released Wednesday. Their challenges reflect broader ones faced by a Chinese economy hobbled by a prolonged real estate crisis that has hurt consumer spending. Beijing also faces growing pushback from Europe and the United States over surging exports. 'The picture has deteriorated across many key metrics,' the European Union Chamber of Commerce in China said in the introduction to its Business Confidence Survey 2025. The same forces that are driving up Chinese exports are depressing the business outlook in the Chinese market. Chinese companies, often enticed by government subsidies, have invested so much in targeted industries such as electric vehicles that factory capacity far outpaces demand. The overcapacity has resulted in fierce price wars that cut into profits and a parallel push by companies into overseas markets. In Europe, that has created fears that growing imports from China could undermine its own factories and the workers they employ. The EU slapped tariffs on Chinese EVs last year, saying China had unfairly subsidized electric vehicle production. 'I think there's a clear perception that the benefits of the bilateral trade and investment relationship are not being distributed in an equitable manner,' Jens Eskelund, the president of the EU Chamber in China, told reporters earlier this week. According to The Associated Press, he applauded efforts by China to boost consumer spending but said the government must also take steps to ensure that supply growth doesn't outpace that in demand. The survey results show that the downward pressure on profits increased over the past year and that a fall in business confidence has yet to bottom out, Eskelund said. About 500 member companies responded to the survey between mid-January to mid-February. 'It is just very difficult for everyone right now in an environment of declining margins,' he said.
