This episode contains segments on:
- EU’s tariffs on battery electric vehicles imported from China;
- Retail sales and industrial production data in May;
- Consumer and producer prices in May;
- Group of Seven’s stance on trade relations with China.
From the Chamber’s side, a high-level meeting with vice minister of the State Administration for Market Regulation took place. Also, listeners are invited to join a midsummer business reception in Beijing on 27th June to connect with European business and diplomatic community while enjoying the elegant and relaxed atmosphere.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
European Commission’s pre-disclosure of provisional countervailing duties on Chinese BEVs
https://ec.europa.eu/commission/presscorner/detail/en/qanda_24_3232
MOFCOM announcement of anti-dumping probe into EU import of pork and pork byproducts
http://trb.mofcom.gov.cn/article/cs/202406/20240603516928.shtml
China June macroeconomic data (NBS)
https://www.stats.gov.cn/sj/zxfb/202406/t20240617_1954710.html
G7 Leaders’ Communiqué
https://www.consilium.europa.eu/media/fttjqncg/apulia-g7-leaders-communique.pdf
European Chamber meets SAMR vice-minister Tian Shihong
https://www.cfsn.cn/news/detail/22/251567.html
European Chamber Midsummer Business Reception
Transcript:
RUI: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 19th June 2024.
(MUSIC)
RUI: On 12th June, the European Commission announced provisional countervailing duties on battery electric vehicles imported from China, underlying the urgency of finding solutions to the imbalances in the commercial relationship between Europe and China.
MARIANN: The provisional tariffs, which range between 17.4 and 38.1 per cent, will be introduced on 4th July if discussions with the Chinese side do not lead to a solution to the matter. However, as the EU’s anti-subsidies investigation is just entering its provisional stage, definitive measures, if taken, will only be confirmed at the end of the year.
After the Commission’s announcement, China’s Ministry of Commerce said that China would take all necessary measures to defend the legitimate rights and interests of Chinese companies. Five days later, on 17th June, the ministry launched an anti-dumping investigation into pork and pork byproducts imported from the EU.
The European Chamber has been consistently advocating for fair competition and a level-playing field, and encourages both sides to take action to depoliticise the business environment and find ways to address underlying causes.
(MUSIC)
RUI: Data disclosed by the National Bureau of Statistics on 17th June showed that in China, retail sales and industrial production both continued to expand in May compared to the same period last year.
MARIANN: The total value of retail sales in China increased 3.7 per cent year-on-year in May. This was the strongest rate of year-on-year growth of the past three months. About 90 per cent of the total value was contributed by sales of goods, with the remaining 10 per cent accumulated through catering sales.
Production at larger industrial firms expanded 5.6 per cent compared to the same period last year. The rate of growth dropped more than one percentage point from the previous month, which was largely due to a relatively moderate increase in production in the mining industry and among utilities producers and providers.
The surveyed urban unemployment rate remained unchanged from April at 5 per cent.
(MUSIC)
RUI: Chinese consumer prices remained subdued, and even though the fall in producer prices slowed in May, deflationary pressures remain.
MARIANN: Consumer prices edged up 0.3 per cent year-on-year in May, as the drop in food prices was almost twice as much as the uptick in non-food prices.
Producer prices dropped 1.4 per cent year-on-year, which was the most moderate rate of decline recorded in 15 months. China’s producer price index has been indicating a continuous fall since September 2022.
(MUSIC)
RUI: Between 13th and 15th June, leaders of the Group of Seven—Italy, Canada, France, Germany, Japan, the United Kingdom, and the United States of America—held their annual summit in Italy, with the President of the European Council and the President of the European Commission representing the European Union at the event. A communique issued at the summit detailed the group’s stance on trade relations with China, reiterating that the group is de-risking and diversifying supply chains where necessary and appropriate and is acting together to foster economic resilience.
MARIANN: G7 leaders recognised the important role China occupies in the international community, and called cooperation with the country necessary to address global challenges, including climate change and pollution. They reiterated their commitment to advancing free and fair trade and called for strengthening the multilateral, rule-based trading system with the World Trade Organization at its core. While the communique stressed that the G7 group is not decoupling or turning inwards, they are concerned about some of China’s policies and practices that were described as “leading to global spillovers, market distortions and harmful overcapacity in a growing range of sectors”.
(MUSIC)
RUI: On 14th June, a European Chamber delegation led by Chamber President Jens Eskelund met with Tian Shihong, vice minister of the State Administration for Market Regulation and administrator of the Standardisation Administration of China.
MARIANN: The two sides had an in-depth exchange on economic and trade relations between Europe and China, as well as on standards and conformity assessment, testing and certification, intellectual property protection, anti-monopoly enforcement and food safety regulation. The vice minister recognised the Chamber’s role in promoting communication between the government and European business and vowed to listen to the Chamber’s views and work to create favourable conditions for European companies to invest in China.
(MUSIC)
RUI: Each year, the European Chamber’s signature Midsummer Business Reception provides a unique platform to connect and engage with the European business and diplomatic community.
MARIANN: Join our exclusive event on 27th June at the garden terrace of the Bulgari Hotel, which offers an oasis of calm and sophistication in the middle of bustling Beijing. Enjoy a delicious cocktail menu and a wide selection of refreshments while taking part in insightful discussions, exchange innovative ideas and uncover opportunities for collaboration.
(MUSIC)
RUI: Thanks for listening, and don’t forget to tune in again next week.
MARIANN: In the meantime, please find useful links in the episode notes.