This episode contains segments on:
- EU’s definitive tariffs on battery electric vehicles imported from China;
- China’s foreign direct investment from January to September;
- Industrial profits in the first three quarters; and
- Finnish President’s official visit in China.
The September/October edition of the Chamber’s bimonthly magazine, EURObiz, is available to download from the Chamber’s website.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
EU tariffs on BEV imports from China
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5589
https://www.mofcom.gov.cn/xwfb/bldhd/art/2024/art_7d36bbdf108c47fba2bd3fb2ea47ff75.html
China January-September FDI (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2024/art_911c061b76804c4f8cdfafb5fd34e367.html
China January-September industrial profits (NBS)
https://www.stats.gov.cn/sj/zxfb/202410/t20241027_1957183.html
Finnish President’s official visit in China
https://www.presidentti.fi/en/president-stubb-meets-president-of-china-xi-jinping/
https://english.www.gov.cn/news/202410/30/content_WS67216d3fc6d0868f4e8ec6b4.html
EURObiz September/October 2024
https://www.europeanchamber.com.cn/en/publications-archive/1270/EURObiz_September_October_2024
Transcript:
XINHE: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
XINHE: This episode was recorded on 30th October 2024.
(MUSIC)
XINHE: On 29th October, the European Union imposed definitive countervailing duties on battery electric vehicles imported from China for a period five years.
MARIANN: The tariffs, which range between 7.8 and 35.3 per cent, entered into force on 30th October, a day after their publication in the Official Journal of the EU. The decision still allows room for negotiation, with the Commission’s official press release highlighting that the EU and China are continuing to work towards finding alternative solutions.
On 25th October, European Commission Executive Vice President and Commissioner for Trade Valdis Dombrovskis held a video call with Chinese Minister of Commerce Wang Wentao to discuss outstanding issues related to the matter.
The two sides reaffirmed their commitment to finding a solution that is agreeable to both. Dombrovskis said that from the EU’s perspective this would mean a solution that is compatible with WTO rules, and effectively maintains the level playing field in the EU market. During the call, Dombrovskis expressed concerns about China’s investigations into EU brandy, pork and dairy imports, highlighting that the EU finds these probes unsubstantiated. Wang Wentao stressed that the investigations were launched at the request of Chinese domestic players in the relevant industries and are in accordance with WTO rules as well as Chinese laws.
(MUSIC)
XINHE: According to official data released by China’s Ministry of Commerce on 25th October, foreign direct investment flows into China continued to drop, with the pace of decrease accelerating at the end of the third quarter of 2024.
MARIANN: In the January-September period, China’s actual use of foreign investment totalled 640 billion yuan, over 30 per cent lower than during the same period last year. The rate of decline slightly improved from a 31.5 per cent peak recorded in the first eight months. A breakdown of the data showed that nearly 70 per cent of FDI was utilised in the services sector.
The Chamber’s Business Confidence Survey 2024 found a year-on-year increase in investments moving out of China: 13 per cent of respondents said that their company had already shifted or had taken the decision to shift existing investments elsewhere. While 65 per cent said that their company is maintaining current investments in the country, this rate stood at 58 per cent with regard to future investments. The top three beneficiaries of this trend were the Association of Southeast Asian Nations, Europe and India.
(MUSIC)
XINHE: Data published by China’s statistics bureau on 27th October showed a year-on-year fall in the cumulative profits at larger industrial firms during the first three quarters, breaking an eight-month streak of moderate growth.
MARIANN: Profits at large industrial companies in China dropped 3.5 per cent in the January-September period, compared to the first three quarters of last year. Notably, annual industrial profits have been in decline for the second year running in 2023.
The Chamber’s Business Confidence Survey 2024 indicated that macroeconomic and demand factors both had a significant negative impact on over a quarter of respondents’ net profit margins in China in 2023. With concerns over China’s economic slowdown weighing heavily on company outlooks, respondents’ expectations for their profitability in China over the upcoming two years were the gloomiest on record, with almost half of respondents expressing pessimism in this regard.
(MUSIC)
XINHE: Finnish President Alexander Stubb held talks with Chinese President Xi Jinping and Chinese Premier Li Qiang during his official visit in Beijing on 29th October.
MARIANN: According to a press release from Finnish President’s office, the discussions between the two presidents primarily focussed on security policy issues, including the war in Ukraine, as well as issues related to bilateral and trade relations, climate change and the environment. The two sides renewed their Joint Action Plan, which forms the basis of their bilateral relationship for the period between 2025 and 2029. During the state visit, the two sides signed several trade agreements and documents on bilateral cooperation, including in the areas of education, water resources and environmental protection. China also extended its visa-free trial programme for Finnish passport holders during the visit.
(MUSIC)
XINHE: Foreign companies operating in China face a range of human resource issues when operating their businesses. The September/October edition of the Chamber’s bimonthly magazine EURObiz, explores some of the biggest HR headaches faced by companies and some possible approaches to tackling them.
MARIANN: The latest edition also contains articles introducing the key takeaways of the Chamber’s recently published Position Paper 2024/2025 and explaining China’s new Company Law.
XINHE: You can download the magazine for free from the Chamber’s website.
(MUSIC)
MARIANN: Thanks for listening, and don’t forget to tune in again next week.
XINHE: In the meantime, please find useful links in the episode notes.