Latest news with #trade imbalance
CNN
24-07-2025
- Business
- CNN
China's Xi urges EU to make ‘the right strategic choice' amid international turbulence at key summit
Asia China European Union War in UkraineFacebookTweetLink Follow Chinese leader Xi Jinping told visiting European Union leaders that Europe should make 'the right strategic choice' and enhance cooperation with China for global 'stability,' as the two sides tackle deep-seated grievances at a key summit. Xi met with European Council President Antonio Costa and European Commission President Ursula von der Leyen in Beijing on Thursday morning, China's state broadcaster CCTV reported. The European leaders are in Beijing for what is expected to be a contentious summit, at a time of growing tension and mistrust between the two sides over their gaping trade imbalance, China's ongoing support for Russia in the Ukraine war, and – most recently – Beijing's chokehold on the rare earths supply chain. Von der Leyen told Xi that the EU's economic ties with China – running at a trade deficit of 300 billion euro (US$350 billion) last year – had reached 'an inflection point.' 'As our cooperation has deepened, so have imbalances,' she said. 'Rebalancing our bilateral relation is essential…It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.' The summit, which has been whittled from a planned two days to a single-day event, is ostensibly meant to celebrate 50 years of diplomatic ties between Beijing and the EU. But expectations are low, and instead, it is expected to showcase a widening rift between the two sides – even though both had signaled hopes for a reset in relations just months earlier as they faced down US President Donald Trump's global tariff war. On Thursday, Xi told Costa and von der Leyen at the Great Hall of the People that the challenges currently faced by Europe 'do not come from China,' and that there are 'no fundamental conflicts of interest or geopolitical contradictions' between Beijing and the bloc, according to a readout from China's Foreign Ministry. 'In the face of accelerating changes not seen in a century and a turbulent international landscape, China and EU leaders must once again demonstrate strategic vision and responsibility, making the right strategic choices that meet the expectations of the people and stand the test of history,' Xi said, according to CCTV. Without directly mentioning Trump's trade war, Xi emphasized that both China and the EU are 'constructive forces that support multilateralism and advocate for openness and cooperation.' 'The more severe and complex the international situation becomes, the more China and the EU need to strengthen communication, enhance mutual trust, and deepen cooperation, so as to provide more stability and certainty to the world through a stable and healthy China-EU relationship,' Xi was quoted as saying. The EU was far from shy about its concerns in the lead up to the summit. Officials in recent weeks have reiterated concerns over what they say are inexpensive Chinese goods 'flooding' European markets, Beijing's recent move to squeeze the rare earths supply chain, and 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.' A day later, 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. 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. 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 were 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 told 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. It roiled the global manufacturing industry after placing export controls on some such minerals in April 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.'
CNN
24-07-2025
- Business
- CNN
China's Xi urges EU to make ‘the right strategic choice' amid international turbulence at key summit
Chinese leader Xi Jinping told visiting European Union leaders that Europe should make 'the right strategic choice' and enhance cooperation with China for global 'stability,' as the two sides tackle deep-seated grievances at a key summit. Xi met with European Council President Antonio Costa and European Commission President Ursula von der Leyen in Beijing on Thursday morning, China's state broadcaster CCTV reported. The European leaders are in Beijing for what is expected to be a contentious summit, at a time of growing tension and mistrust between the two sides over their gaping trade imbalance, China's ongoing support for Russia in the Ukraine war, and – most recently – Beijing's chokehold on the rare earths supply chain. Von der Leyen told Xi that the EU's economic ties with China – running at a trade deficit of 300 billion euro (US$350 billion) last year – had reached 'an inflection point.' 'As our cooperation has deepened, so have imbalances,' she said. 'Rebalancing our bilateral relation is essential…It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.' The summit, which has been whittled from a planned two days to a single-day event, is ostensibly meant to celebrate 50 years of diplomatic ties between Beijing and the EU. But expectations are low, and instead, it is expected to showcase a widening rift between the two sides – even though both had signaled hopes for a reset in relations just months earlier as they faced down US President Donald Trump's global tariff war. On Thursday, Xi told Costa and von der Leyen at the Great Hall of the People that the challenges currently faced by Europe 'do not come from China,' and that there are 'no fundamental conflicts of interest or geopolitical contradictions' between Beijing and the bloc, according to a readout from China's Foreign Ministry. 'In the face of accelerating changes not seen in a century and a turbulent international landscape, China and EU leaders must once again demonstrate strategic vision and responsibility, making the right strategic choices that meet the expectations of the people and stand the test of history,' Xi said, according to CCTV. Without directly mentioning Trump's trade war, Xi emphasized that both China and the EU are 'constructive forces that support multilateralism and advocate for openness and cooperation.' 'The more severe and complex the international situation becomes, the more China and the EU need to strengthen communication, enhance mutual trust, and deepen cooperation, so as to provide more stability and certainty to the world through a stable and healthy China-EU relationship,' Xi was quoted as saying. The EU was far from shy about its concerns in the lead up to the summit. Officials in recent weeks have reiterated concerns over what they say are inexpensive Chinese goods 'flooding' European markets, Beijing's recent move to squeeze the rare earths supply chain, and 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.' A day later, 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. 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. 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 were 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 told 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. It roiled the global manufacturing industry after placing export controls on some such minerals in April 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.'
CNN
24-07-2025
- Business
- CNN
China's Xi urges EU to make ‘the right strategic choice' amid international turbulence at key summit
Chinese leader Xi Jinping told visiting European Union leaders that Europe should make 'the right strategic choice' and enhance cooperation with China for global 'stability,' as the two sides tackle deep-seated grievances at a key summit. Xi met with European Council President Antonio Costa and European Commission President Ursula von der Leyen in Beijing on Thursday morning, China's state broadcaster CCTV reported. The European leaders are in Beijing for what is expected to be a contentious summit, at a time of growing tension and mistrust between the two sides over their gaping trade imbalance, China's ongoing support for Russia in the Ukraine war, and – most recently – Beijing's chokehold on the rare earths supply chain. Von der Leyen told Xi that the EU's economic ties with China – running at a trade deficit of 300 billion euro (US$350 billion) last year – had reached 'an inflection point.' 'As our cooperation has deepened, so have imbalances,' she said. 'Rebalancing our bilateral relation is essential…It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.' The summit, which has been whittled from a planned two days to a single-day event, is ostensibly meant to celebrate 50 years of diplomatic ties between Beijing and the EU. But expectations are low, and instead, it is expected to showcase a widening rift between the two sides – even though both had signaled hopes for a reset in relations just months earlier as they faced down US President Donald Trump's global tariff war. On Thursday, Xi told Costa and von der Leyen at the Great Hall of the People that the challenges currently faced by Europe 'do not come from China,' and that there are 'no fundamental conflicts of interest or geopolitical contradictions' between Beijing and the bloc, according to a readout from China's Foreign Ministry. 'In the face of accelerating changes not seen in a century and a turbulent international landscape, China and EU leaders must once again demonstrate strategic vision and responsibility, making the right strategic choices that meet the expectations of the people and stand the test of history,' Xi said, according to CCTV. Without directly mentioning Trump's trade war, Xi emphasized that both China and the EU are 'constructive forces that support multilateralism and advocate for openness and cooperation.' 'The more severe and complex the international situation becomes, the more China and the EU need to strengthen communication, enhance mutual trust, and deepen cooperation, so as to provide more stability and certainty to the world through a stable and healthy China-EU relationship,' Xi was quoted as saying. The EU was far from shy about its concerns in the lead up to the summit. Officials in recent weeks have reiterated concerns over what they say are inexpensive Chinese goods 'flooding' European markets, Beijing's recent move to squeeze the rare earths supply chain, and 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.' A day later, 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. 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. 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 were 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 told 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. It roiled the global manufacturing industry after placing export controls on some such minerals in April 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.'
South China Morning Post
24-07-2025
- Business
- South China Morning Post
European firms call for return to free and fair trade at China-EU summit
European companies called for a return to the spirit of free and fair trade at Thursday's highly anticipated China-European Union summit in Beijing , urging leaders to settle their policy differences and promote a level playing field for businesses in both markets. They expected the European side to press China on issues including reducing the bilateral trade imbalance, lowering market access and regulatory barriers, and ensuring equal treatment for foreign companies operating in the country. 'I think that one of the main expectations shared by many industries would be to preserve free trade … anything that becomes an obstacle to this free trade is, in our view, a problem,' an EU industry source told the Post on Wednesday. 'The core of today's debate between the European Union and China is how to maintain this idea of free trade, while recognising that certain sectors may be more competitive on one side than the other. The goal is to ensure that, when free trade happens, it takes place on fair and equitable terms,' the source said. The European Union Chamber of Commerce in China (EUCCC) said it expected both sides to identify areas where 'cooperation is still possible and necessary', highlighting in particular the need to step up cooperation on the green transition and climate change, in a statement published on Tuesday. Environmental regulations – specifically the gap between European and Chinese environmental laws – are one of the two main concerns for the EU industry source, the other being the subsidies enjoyed by China's state-owned enterprises. The key question is how Europe can keep pushing ahead as a global leader in building cleaner, more sustainable industries without undermining its own competitiveness, the source said.
Yahoo
14-07-2025
- Business
- Yahoo
Hundreds of Cambodia's Garment Factories Unsure About Operations Beyond 3 Months
That the White House lowered Cambodia's so-called 'reciprocal' tariff figure from a 'Liberation Day' high of 49 percent to a potential 35 percent this week will come as little comfort for the Southeast Asian nation, which has less than three weeks to secure a deal that could lower customs duties for the clothing and footwear that make up more than half of its $26 billion in annual exports, a sizable portion of which is destined for the United States. In Prime Minister Hun Manet's version of what has essentially been a boilerplate letter, President Donald Trump said that the tariff rate would redress what he described as an 'unfair' and 'persistent' trade imbalance between the two countries. More from Sourcing Journal Trump Announces 30% Duties on EU, Mexico US Apparel Imports From China Fell to a 22-Year Low in May Amid Trade War Escalation US-Brazil Trade Battle Puts Shoe Firms in Crossfire 'Our trading relationship with Cambodia has been far from reciprocal,' he wrote, citing, by way of evidence, a $12.3 billion trade deficit in 2024. 'These tariffs are necessary to correct many years of Cambodia's tariff and non-tariff policies and trade barriers.' The implications of this are only beginning to hit Cambodia's roughly 900,000 apparel, footwear and travel goods workers, most of them women, because they've been clocking overtime hours to hurry out orders before the duty hike's original July 9 deadline, said Tharo Khun, program manager at the Center of Alliance of Labor and Human Rights, the workers' rights group better known as CENTRAL. But how major U.S. buyers such as Adidas, Nike, Gap Inc., Levi Strauss & Co., Puma, Under Armour, Calvin Klein owner PVH Corp. and The North Face parent VF Corp. react over the next few months, even weeks, could shift the fate of an entire country. All the brands either declined to comment, with some citing a quiet period before earnings results, or did not respond to requests. 'Surely having a 16 percent difference with Vietnam will pose huge challenges for us going forward vis a vis our competitiveness compared to Vietnam,' Ken Loo, secretary general of the Textile, Apparel, Footwear and Travel Goods Association of Cambodia, said of Vietnam's 20 percent tariff rate, which saw a marked reduction from the originally imposed 46 percent in April. Loo said there was still plenty to recommend Cambodia over Vietnam, such as what he said was a more abundant supply of labor and 'certainly' higher levels of compliance with mandatory International Labor Organization monitoring in all exporting apparel, footwear and travel goods factories. 'We hope there is a breakthrough in the next three weeks,' he added. Whether companies selling into the European Union will pick up the slack is also questionable, if not downright doubtful, following the trading bloc's partial withdrawal of Cambodia's Everything But Arms trade preferences in 2020 due to human rights concerns, including violations of freedom of expression. And the fact remains that the United States is the world's largest consumer market. 'I can't predict what will happen, but it's very, very concerning,' Khun said. 'This will affect the job security and livelihoods of workers.' Sun Chanthol, deputy prime minister and first vice president of the Council for the Development of Cambodia, moved to reassure factory owners and investors on Tuesday, spinning the rate as a 'success' because it involved the highest tariff reduction among the first tranche of 14 countries to which it belonged. Others, like Malaysia and Japan, saw their numbers tick up. 'I would like to take this opportunity to call on companies with factories in Cambodia to stay calm,' he said. 'The Royal Government has the full capability to protect employers, employees and Cambodia's national interests. We have both the capacity and the conditions to attract more investors, which in turn will help create more jobs for Cambodians.' But suppliers, facing a murky future beyond the short-term crunch, are already rattled. Nearly half (44 percent) of the more than 750 apparel, footwear and travel goods factories surveyed in May by Better Factories Cambodia, an International Labour Organization-backed program designed to improve working conditions in the country's garment sector, are uncertain if they will be able to sustain current operations beyond three months because that's when orders run out. Some 15 percent say they currently have no confirmed orders, or orders only for the next few weeks. More than one-quarter (27 percent) also reported that their buyers have requested reduced pricing for orders placed during the year, which Better Factories Cambodia said provided some indication of the 'willingness' of buyers to shift costs to suppliers in the case of a tariff-driven upswing. Among the respondents, 91 percent said that their factory exports at least a portion of their production to the United States. As with the 'demand shock' triggered by the Covid-19 pandemic, the report noted, sudden order disruptions could potentially result in negative repercussions that include worker retrenchments, suspensions and dismissals. While most factories are looking to expand their customer base, only 26 percent have secured new buyers or opportunities. All this comes at a time of growing concern about a skilled labor shortage, especially sewing and technical staff, because of increasing competition from new factories in provincial areas and a reluctance among workers to return after their relocation. This has resulted in high turnover, reduced production efficiency and greater operational instability that changing sourcing behavior will only exacerbate, Better Factories Cambodia said. 'While we don't currently have a formal projection on the consequences of the announced tariffs, a sustained increase in tariffs could place additional pressure on the sector, with potential implications for factories and workers,' said Froukje Boele, program manager at Better Factories Cambodia. 'We're continuing to engage with global brands under the Better Work program to better understand how the current trade developments may affect sourcing decisions and supplier operations.' Part of the reason why so much uncertainty looms over suppliers is because the vast majority of fashion's social and environmental initiatives have been voluntary, unilateral and top-down, which has allowed brands and retailers to rack up PR brownie points without requiring them to put any real 'skin in the game,' Christina Hajagos-Clausen, IndustriALL Global Union's director for the textile, garment, shoe and leather sector, told the audience at the Global Fashion Summit in Copenhagen last year. It was also at the summit that PVH Corp., together with Asos, H&M Group and Primark, announced that they had signed binding 'support' commitments with IndustriALL that obligated them to, among other things, ring-fence labor costs, guarantee specific volumes and pay into a skills development fund for workers. The idea—as channeled through the international union federation's global framework agreement on living wages, dubbed Action, Collaboration, Transformation, or ACT—was to incentivize or otherwise assure suppliers that signing collective bargaining agreements with trade unions to increase wages wouldn't result in price-sensitive buyers cutting and running whenever the stakes grew too high. One caveat was that the volume pledges would only kick into effect once a certain threshold of factories—as determined by the specific brand or retailer achievement—was achieved. PVH Corp. and a few other firms have conveyed to IndustriALL and its Cambodian affiliates that they will continue to place orders in the country, said Athit Kong, president of the Coalition of Cambodian Apparel Workers Democratic Union, which was involved in ACT's negotiations. While he hasn't heard from members about whether U.S. brands have paused or canceled orders, it's early days yet for that information to filter down, he added. Jason Judd, executive director of Cornell University's ILR Global Labor Institute, isn't holding his breath. Working in Phnom Penh as country director for the Solidarity Center and then for the International Labour Organization, he witnessed 'a decade of fierce wage suppression, fake unions, violence against workers, followed by climate brinksmanship and more' because trade and basic protections for workers are not connected. That applies to the United States, too, he said. 'A less stupid trade policy would connect U.S. tariffs and market access with outcomes for workers, not outcomes for Trump and, as we've seen in Vietnam, his family,' Judd added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
