Latest news with #Europe-made
Egypt Independent
2 days ago
- Business
- Egypt Independent
Both targets of Trump's tariffs, the EU and China still can't get along
Hong Kong CNN — As the two biggest economic targets in Donald Trump's trade war, some analysts thought the European Union and China could move closer together and stake out common ground. But a summit between the two sides in Beijing on Thursday is instead expected to showcase the deep-seated frictions and mistrust that are widening a rift between the two heavyweights. European Council President Antonio Costa and European Commission President Ursula von der Leyen are set to meet Chinese leader Xi Jinping and hold summit talks with Chinese Premier Li Qiang in Beijing. The meeting comes as both countries have faced heightened tariffs on their exports to the US – with uncertainties in US trade relations driving Beijing to look to tighten ties with the EU and other major economies. But a list of grievances between the two sides are setting that goal out of reach. The EU was far from shy about its concerns in the lead up to the summit. Officials in recent weeks have reiterated their long-standing concerns over what they say are inexpensive Chinese goods 'flooding' European markets, raised alarms about Beijing's move to squeeze the rare earths supply chain, and decried its ongoing backing for Russia as it wages war in Ukraine. Beijing has lashed out against those concerns, including the 27-member bloc's move last year to raise tariffs on its electric vehicles, launching a range of its own trade probes in apparent retaliation. European Commission President Ursula von der Leyen shakes hands with Chinese leader Xi Jinping after holding a trilateral meeting including French President Emmanuel Macron in Paris in May, 2024. Christian Liewig/Corbis/Getty Images After the EU last month announced it was barring Chinese companies from participating in public tenders for medical devices over a certain value, Beijing hit back with its own curbs on government purchases of Europe-made devices. On Monday, China's Ministry of Commerce slammed the EU decision to include two Chinese banks and a handful of other firms in its latest sanctions against Russia over its invasion of Ukraine. It claimed the move would have a 'severely negative impact on China-EU economic and trade relations.' China's Commerce Minister Wang Wentao lodged solemn representations — diplomatic speak for formally expressing serious discontent — over the sanctions in a video call with EU trade chief Maros Sefcovic on Tuesday. The two officials had 'candid and in-depth' discussions on China-EU economic and trade cooperation and key issues of concern, the Chinese Commerce Ministry said in a statement. All this sets the stage for a contentious summit, ostensibly meant to celebrate 50 years of relations, that's already been whittled from a planned two days to a single-day event. 'We should expect a very difficult moment and not a deal making moment,' said Abigaël Vasselier, head of the Foreign Relations team at MERICS think tank in Germany, during a media briefing this week. And in some ways that mirrors frictions between the China and the US, she added: 'China has created leverage over Europe, has gone into a tit-for-tat escalation with Europe, and has linked all issues. You could almost say this looks like a Trump playbook used by China on Europe.' The US effect Trump's trade war – and his negotiations with both major economies – is also casting a long shadow over the summit. There were signs earlier this year that Beijing hoped shared adversity in the face of tariff threats from the US could push China and Europe together. And earlier this month, Beijing granted a reprieve for Europe's major cognac makers following an anti-dumping probe widely seen as retaliation for the bloc's imposition of up to 45% tariffs on its electric vehicles last year. But in separate addresses to G7 leaders and European lawmakers in recent weeks, von der Leyen made clear the bloc's deep concerns about Beijing had been unresolved. 'China is using this quasi-monopoly (on rare earths) not only as a bargaining chip, but also weaponizing it to undermine competitors in key industries,' she said to G7 leaders meeting in Canada in June. Beijing has extensive control over supply chains for these critical minerals key in everything from EV batteries and cell phones to fighter jets and roiled global manufacturing after placing export controls on some such minerals amid its trade spat with the US. China agreed during a truce with the US in June to ease these controls. Von der Leyen also called for unified G7 action to pressure Beijing as it 'floods global markets with subsidized overcapacity that its own market cannot absorb.' Miners are seen at the Bayan Obo mine containing rare earth minerals, in China's Inner Mongolia in 2011. Reuters While von der Leyen has long been hawkish on Beijing, voices in China have seen her as pandering to the US to ease trade frictions – and are watching closely for signs that a potential US-EU trade deal could target their economy. But China's leaders are also joining this week's summit in what they see as a relatively strong position relative to the EU when it comes the US talks. Beijing sees its decision to play hardball with the US, by raising tit-for-tat levies and then showing the power of its rare earths leverage, as paying off – bringing the US to the negotiating table twice and resulting with an agreement for a trade framework. Even as frictions remain – including China's purchases of Russian oil and Washington's elevated tariffs on Chinese goods – Beijing has already chalked wins, like the announced resumption of sales of Nvidia's H20 AI chips to China, in a reversal of an April US export ban. The EU, meanwhile, is scrambling ahead of an August 1 deadline to cut a deal with the US to avert heavy tariffs – and may see more at stake than their Chinese counterparts. 'The worst-case scenario would be for Europe to find itself in a two-front trade war with the US and China at a time when Trump is pressing for some sort of Faustian bargain with Beijing,' said Noah Barkin, a Berlin-based visiting senior fellow at the German Marshall Fund of the United States think tank. 'Rebalance'? With this backdrop, chances for any concrete outcomes appear low to observers on both sides, who instead stress that dialogue can be a form of progress in itself. Europe has been clear that it doesn't want to cut ties with China, but rather 'rebalance' its economic relationship, which saw a more than 300 billion Euro deficit last year. It also aims to 'derisk' its supply chains, and work together with China on shared global issues like climate change – a potential area of agreement this week. But experts say a key hold-up for Europe has been a sense that Beijing is unmoved by Brussels' core concerns. 'We haven't had an EU-China summit that produced real deliverables for many years and this one won't be any different. That is a reflection of Beijing's refusal to address the EU's two biggest concerns: an increasingly imbalanced economic relationship that poses a growing threat to European industry and China's ongoing support for Russia,' said Barkin. China has rejected Europe's concerns about industrial overcapacity leading to a flood of exports as baseless, with one state media outlet recently saying that instead of 'rebalancing trade,' Europe to 'needs to recalibrate its mentality.' BYD electric cars at a vehicle presentation event in Berlin this May. Annegret Hilse/Reuters Instead, Beijing is expected to continue to push for setting minimum prices of Chinese-made EVs in Europe instead of tariffs, as well as unfettered access to European technology and markets. And even as Russia ramps up its assault on Kyiv, Beijing is unlikely to give any sign of a shift in that position on Moscow, its close partner. Chinese Foreign Minister Wang Yi reportedly told the European Union's top diplomat earlier this month that Beijing can't accept Russia losing its war against Ukraine as this could allow the United States to turn its full attention to China. China has long claimed neutrality in the war and defended its 'normal trade' with Russia, while ramping up purchases of its oil and shipping goods Western leaders say power Russia's defense industry. But observers in China still feel there's room for collaboration as the two sides sit down on Thursday. 'To solve challenges from climate change to AI and global conflicts, the European Union needs China, and China needs the European Union,' according to Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing. Alluding to the view that the EU can be a counterweight for China against US frictions and a partner in promoting globalization, he added: 'If China and the European Union seek win-win cooperation, the so-called new Cold War cannot prevail.'
CNN
2 days ago
- Business
- CNN
Analysis: Both targets of Trump's tariffs, the EU and China still can't get along
As the two biggest economic targets in Donald Trump's trade war, some analysts thought the European Union and China could move closer together and stake out common ground. But a summit between the two sides in Beijing on Thursday is instead expected to showcase the deep-seated frictions and mistrust that are widening a rift between the two heavyweights. European Council President Antonio Costa and European Commission President Ursula von der Leyen are set to meet Chinese leader Xi Jinping and hold summit talks with Chinese Premier Li Qiang in Beijing. The meeting comes as both countries have faced heightened tariffs on their exports to the US – with uncertainties in US trade relations driving Beijing to look to tighten ties with the EU and other major economies. But a list of grievances between the two sides are setting that goal out of reach. The EU was far from shy about its concerns in the lead up to the summit. Officials in recent weeks have reiterated their long-standing concerns over what they say are inexpensive Chinese goods 'flooding' European markets, raised alarms about Beijing's move to squeeze the rare earths supply chain, and decried its ongoing backing for Russia as it wages war in Ukraine. Beijing has lashed out against those concerns, including the 27-member bloc's move last year to raise tariffs on its electric vehicles, launching a range of its own trade probes in apparent retaliation. After the EU last month announced it was barring Chinese companies from participating in public tenders for medical devices over a certain value, Beijing hit back with its own curbs on government purchases of Europe-made devices. On Monday, China's Ministry of Commerce slammed the EU decision to include two Chinese banks and a handful of other firms in its latest sanctions against Russia over its invasion of Ukraine. It claimed the move would have a 'severely negative impact on China-EU economic and trade relations.' All this sets the stage for a contentious summit, ostensibly meant to celebrate 50 years of relations, that's already been whittled from a planned two days to a single-day event. 'We should expect a very difficult moment and not a deal making moment,' said Abigaël Vasselier, head of the Foreign Relations team at MERICS think tank in Germany, during a media briefing this week. And in some ways that mirrors frictions between the China and the US, she added: 'China has created leverage over Europe, has gone into a tit-for-tat escalation with Europe, and has linked all issues. You could almost say this looks like a Trump playbook used by China on Europe.' Trump's trade war – and his negotiations with both major economies – is also casting a long shadow over the summit. There were signs earlier this year that Beijing hoped shared adversity in the face of tariff threats from the US could push China and Europe together. And earlier this month, Beijing granted a reprieve for Europe's major cognac makers following an anti-dumping probe widely seen as retaliation for the bloc's imposition of up to 45% tariffs on its electric vehicles last year. But in separate addresses to G7 leaders and European lawmakers in recent weeks, von der Leyen made clear the bloc's deep concerns about Beijing had been unresolved. 'China is using this quasi-monopoly (on rare earths) not only as a bargaining chip, but also weaponizing it to undermine competitors in key industries,' she said to G7 leaders meeting in Canada in June. Beijing has extensive control over supply chains for these critical minerals key in everything from EV batteries and cell phones to fighter jets and roiled global manufacturing after placing export controls on some such minerals amid its trade spat with the US. China agreed during a truce with the US in June to ease these controls. Von der Leyen also called for unified G7 action to pressure Beijing as it 'floods global markets with subsidized overcapacity that its own market cannot absorb.' While von der Leyen has long been hawkish on Beijing, voices in China have seen her as pandering to the US to ease trade frictions – and are watching closely for signs that a potential US-EU trade deal could target their economy. But China's leaders are also joining this week's summit in what they see as a relatively strong position relative to the EU when it comes the US talks. Beijing sees its decision to play hardball with the US, by raising tit-for-tat levies and then showing the power of its rare earths leverage, as paying off – bringing the US to the negotiating table twice and resulting with an agreement for a trade framework. Even as frictions remain - including China's purchases of Russian oil and Washington's elevated tariffs on Chinese goods - Beijing has already chalked wins, like the announced resumption of sales of Nvidia's H20 AI chips to China, in a reversal of an April US export ban. The EU, meanwhile, is scrambling ahead of an August 1 deadline to cut a deal with the US to avert heavy tariffs – and may see more at stake than their Chinese counterparts. 'The worst-case scenario would be for Europe to find itself in a two-front trade war with the US and China at a time when Trump is pressing for some sort of Faustian bargain with Beijing,' said Noah Barkin, a Berlin-based visiting senior fellow at the German Marshall Fund of the United States think tank. With this backdrop, chances for any concrete outcomes appear low to observers on both sides, who instead stress that dialogue can be a form of progress in itself. Europe has been clear that it doesn't want to cut ties with China, but rather 'rebalance' its economic relationship, which saw a more than 300 billion Euro deficit last year. It also aims to 'derisk' its supply chains, and work together with China on shared global issues like climate change – a potential area of agreement this week. But experts say a key hold-up for Europe has been a sense that Beijing is unmoved by Brussels' core concerns. 'We haven't had an EU-China summit that produced real deliverables for many years and this one won't be any different. That is a reflection of Beijing's refusal to address the EU's two biggest concerns: an increasingly imbalanced economic relationship that poses a growing threat to European industry and China's ongoing support for Russia,' said Barkin. China has rejected Europe's concerns about industrial overcapacity leading to a flood of exports as baseless, with one state media outlet recently saying that instead of 'rebalancing trade,' Europe to 'needs to recalibrate its mentality.' Instead, Beijing is expected to continue to push for setting minimum prices of Chinese-made EVs in Europe instead of tariffs, as well as unfettered access to European technology and markets. And even as Russia ramps up its assault on Kyiv, Beijing is unlikely to give any sign of a shift in that position on Moscow, its close partner. Chinese Foreign Minister Wang Yi reportedly told the European Union's top diplomat earlier this month that Beijing can't accept Russia losing its war against Ukraine as this could allow the United States to turn its full attention to China. China has long claimed neutrality in the war and defended its 'normal trade' with Russia, while ramping up purchases of its oil and shipping goods Western leaders say power Russia's defense industry. But observers in China still feel there's room for collaboration as the two sides sit down on Thursday. 'To solve challenges from climate change to AI and global conflicts, the European Union needs China, and China needs the European Union,' according to Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing. Alluding to the view that the EU can be a counterweight for China against US frictions and a partner in promoting globalization, he added: 'If China and the European Union seek win-win cooperation, the so-called new Cold War cannot prevail.'
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
One of Europe's richest families searches for answers as they lose billions
The billionaire family controlling Puig Brands may weigh options — including buying its stock — to revive the Spanish beauty-products group's sagging shares, its chief executive officer said. Shares of Puig, owner of brands like Jean Paul Gaultier and makeup label Charlotte Tilbury, had tumbled more than 34 per cent since its splashy listing as Europe's biggest IPO in 2024. They rose as much as 2 per cent in Madrid on Monday. 'Over time we'll consider whether or not it makes sense to make any moves to help investors who have invested in the stock achieve the value they believe it deserves,' Marc Puig said in an interview, referring to a possible family led stock purchase or ways to increase the liquidity of its shares. 'No moves are planned in the short term.' The Puigs are among Europe's wealthiest families. They own Exea Empresarial, which controls 74 per cent of Puig's capital and 93 per cent of its voting rights. The family's fortune has shrunk about 19 per cent from just before the shares began trading to $US9.7 billion ($14.9 billion), according to the Bloomberg Billionaires Index. The decline stemmed largely from the drop in the company's stock. Puig shares have tumbled like those of others in the industry including L'Oreal and LVMH as they suffer from uncertainty over the effects of US President Donald Trump's tariff wars and concerns about sluggish consumer demand. For Puig, the decline has come even though it has consistently met targets. Loading 'I don't feel like we've let anyone down,' Puig said. 'We've delivered, we continue to grow.' Most analysts have a 'buy' recommendation on the stock. 'So far everything they've promised has happened,' said Xavier Brun, Head of Equity at Trea Asset Management, which holds Puig shares. On Wednesday, the company reiterated its forecast of 6 per cent to 8 per cent organic sales growth for the year, even after factoring in a 20 per cent US tariff on Europe-made products. Trump has threatened 30 per cent tariffs on products from the European Union. Puig said it expected little impact from the trade war in 2025 since most of the products are already in the US.
The Age
3 days ago
- Business
- The Age
One of Europe's richest families searches for answers as they lose billions
The billionaire family controlling Puig Brands may weigh options — including buying its stock — to revive the Spanish beauty-products group's sagging shares, its chief executive officer said. Shares of Puig, owner of brands like Jean Paul Gaultier and makeup label Charlotte Tilbury, had tumbled more than 34 per cent since its splashy listing as Europe's biggest IPO in 2024. They rose as much as 2 per cent in Madrid on Monday. 'Over time we'll consider whether or not it makes sense to make any moves to help investors who have invested in the stock achieve the value they believe it deserves,' Marc Puig said in an interview, referring to a possible family led stock purchase or ways to increase the liquidity of its shares. 'No moves are planned in the short term.' The Puigs are among Europe's wealthiest families. They own Exea Empresarial, which controls 74 per cent of Puig's capital and 93 per cent of its voting rights. The family's fortune has shrunk about 19 per cent from just before the shares began trading to $US9.7 billion ($14.9 billion), according to the Bloomberg Billionaires Index. The decline stemmed largely from the drop in the company's stock. Puig shares have tumbled like those of others in the industry including L'Oreal and LVMH as they suffer from uncertainty over the effects of US President Donald Trump's tariff wars and concerns about sluggish consumer demand. For Puig, the decline has come even though it has consistently met targets. Loading 'I don't feel like we've let anyone down,' Puig said. 'We've delivered, we continue to grow.' Most analysts have a 'buy' recommendation on the stock. 'So far everything they've promised has happened,' said Xavier Brun, Head of Equity at Trea Asset Management, which holds Puig shares. On Wednesday, the company reiterated its forecast of 6 per cent to 8 per cent organic sales growth for the year, even after factoring in a 20 per cent US tariff on Europe-made products. Trump has threatened 30 per cent tariffs on products from the European Union. Puig said it expected little impact from the trade war in 2025 since most of the products are already in the US.
Fashion Network
4 days ago
- Business
- Fashion Network
Billionaire Puig Empire to Weigh Share Buyback in Time, CEO Says
The billionaire family controlling Puig Brands SA may weigh options, including buying its stock, to revive the Spanish beauty products group's sagging shares, its chief executive officer said. Shares of Puig, owner of perfume brands like Jean Paul Gaultier and makeup label Charlotte Tilbury, have tumbled more than 34% since its splashy listing just over a year ago as Europe's biggest IPO in 2024. 'Over time we'll consider whether or not it makes sense to make any moves to help investors who have invested in the stock achieve the value they believe it deserves,' Marc Puig said in an interview, referring to a possible family led stock purchase or ways to increase the liquidity of its shares. 'No moves are planned in the short term.' The Puigs are among Europe's wealthiest families. They own Exea Empresarial, which controls 74% of Puig's capital and 93% of its voting rights. Puig shares have tumbled like those of others in the industry including L'Oreal SA and LVMH as they suffer from uncertainty over the effects of US President Donald Trump 's tariff wars and concerns about sluggish consumer demand. For Puig, the decline has come even though it has consistently met targets. 'I don't feel like we've let anyone down,' Puig said. 'We've delivered, we continue to grow.' Most analysts have a 'buy' recommendation on the stock. 'So far everything they've promised has happened,' said Xavier Brun, Head of Equity at Trea Asset Management, which holds Puig shares. On Wednesday, the company reiterated its forecast of 6% to 8% organic sales growth for the year, even after factoring in a 20% US tariff on Europe-made products. Trump has threatened 30% tariffs on products from the European Union. Puig said it expected little impact from the trade war in 2025 since most of the products are already in the US. Analysts like Patrick Folan at Barclays said the company has been less forthcoming about the outlook beyond this year. 'It would be helpful for Puig to come to market and explain what the current moderation in category growth means for them, and clearly state why they could be ok compared to the wider market,' he said. 'It's important to evolve the messaging from the IPO, as the IPO expectations of market growth may no longer be realistic next year or in 2027.' Puig plans to provide guidance for next year once he has more clarity on subjects like tariffs and the dollar. 'It'll be good to clarify these doubts to better measure consumer sentiment,' he said. For now, the executive, who's been at the helm for more than two decades, says the company's going to stick to doing what it does best — creating and selling fragrances. It will also focus on its make-up and skincare products, whose growth stood out in the most recent quarter even as fragrance sales moderated. That strategy of hunkering down and focusing on it core business has paid off for the company in the past. In the early 2000s, when Marc Puig took charge, the company faced financial difficulties and restructured the business to cut costs and allocate more resources toward building its perfume brands. Years later, that turnaround allowed it to stretch its fragrance portfolio. Puig now holds three spots in the world's top ten fragrance label rankings after Jean Paul Gaultier, its fastest growing brand, entered the list last year. Puig's focus on its prestige perfumes portfolio, which accounts about 70% of sales, and pipeline of products should sustain expansion and deliver better growth than its premium-beauty peers, Bloomberg Intelligence analysts Andrea Ferdinando Leggieri and Deborah Aitken wrote in a report on July 7. For Puig, much of the work of concocting new perfumes happens inside the glass-walled chamber high up in its new tower in Barcelona, which was inaugurated by King Felipe VI and Queen Letizia of Spain last year. Here, Gregorio Sola, a master perfumer, waxes lyrical about his trips around the world to find the finest ingredients: sandalwood oil from trees that have to grow for 30 to 40 years or a rare, signature rose. Fragrances inspired by the bold smells of the 1980s and 90s are making a comeback, Sola says. The growth of the market is being fuelled by young consumers' appetite for unique and expressive fragrances. Puig tapped that market early when it started acquiring niche brands like L'Artisan Perfumeur and Byredo, which often have unconventional compositions and limited distribution. Beginning over a century ago as a distributor of French perfumes, Puig made a major shift in the early 20th century to manufacture its own products like Spain's first homegrown lipstick. In the 60s and 70s, it began partnering with fashion designers like Paco Rabanne to launch fragrances — doubling down later by acquiring entire fashion houses like Carolina Herrera and Nina Ricci. The challenge for Puig is to continue to deliver on its promises. 'What we need to do is take risks, tell good stories, and make exceptional products,' he said. 'I'd like to think we're able to continue getting people excited about our products.'
