This episode contains segments on:
- EU tariffs on electric vehicles imported from China;
- Anti-dumping measures against EU brandy;
- Policies to stabilise the economy and boost investment; and
- Official purchasing managers’ index in September.
Also, listeners are invited to join an event on 18th October with Dr Pascale Massot on her new book China’s Vulnerability Paradox: How the World’s Largest Consumer Transformed Global Commodity Markets.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
EU tariffs on Chinese EVs
Anti-dumping measures against EU brandy
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2024/art_5bf8cf04b4fe495dbdcae9f0d03fcb94.html
Policies to stabilise the economy and boost investment
https://english.www.gov.cn/news/202410/08/content_WS6704d29dc6d0868f4e8eb91c.html
China Official PMIs, September (NBS)
https://www.stats.gov.cn/sj/zxfb/202409/t20240930_1956798.html
European Chamber event: Insight China Expert Talk – Navigating Vulnerability: China’s Role in Global Commodity Markets
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 9th October 2024.
(MUSIC)
RUI: On 4th October, EU Member States voted on whether to confirm tariffs on electric vehicles or EVs being exported from China to the EU. In the absence of a qualified majority in opposition, the tariffs were approved. An implementing regulation that includes the definitive findings of the Commission’s investigation will be published by 30th October, but the EU and China will continue to work on an alternative solution before that date.
MARIANN: The EU’s tariffs are intended to prevent companies that obtained subsidies in China not available to their competitors from gaining an unfair advantage in the EU’s single market, and target both Chinese and foreign-invested EV makers in China.
The European Chamber continues to believe that dialogue is the preferred avenue for resolving trade disputes. Our understanding is that the EU’s investigation and the application of tariffs has been carried out in compliance with WTO rules.
The relationship between Europe and China has created immense value in the past and has significant potential for future value creation. As such, the Chamber supports the EU and China to consider a negotiated solution with a view to ensuring a level-playing field in the relationship and addressing imbalances.
(MUSIC)
RUI: On 8th October, China’s Ministry of Commerce announced that starting from 11th October it will impose anti-dumping measures on brandy imported from the EU.
MARIANN: After the newly announced measures take effect, importers of EU brandy will be obliged to put down a security deposit ranging from 30.6 to 39 per cent of the products’ import value. The measures are being put in place following an anti-dumping investigation into EU brandy imports that was initiated in January.
European Chamber members were disappointed by the announcement. This action runs contrary to bilateral progress made in the food and beverage sector, as exemplified by the signing of the EU-China Geographical Indications Agreement, one of the few bright spots in the EU-China relationship in recent years.
(MUSIC)
RUI: On 8th October, during a symposium of the Politburo Standing Committee, Chinese Premier Li Qiang urged that policies to stabilise the economy are implemented promptly. On the same day, the National Development and Reform Commission announced it would expedite investment plans originally set for 2025 to boost investment and economic growth.
MARIANN: Li Qiang stressed the need to speed up the implementation of policies that have already been introduced while also accelerating the formulation of policies that are currently being studied.
The Chamber recently published its Position Paper 2024/2025, focussing on the urgent need for the Chinese authorities to follow through on reform pledges announced in the past year.
The NDRC said it would allocate two hundred billion yuan in advance from next year’s budget to spur investment. Specific to foreign businesses, the Commission said the catalogue of industries open to foreign investment will be expanded further, and new foreign-invested projects will be introduced.
(MUSIC)
RUI: According to data released by the National Bureau of Statistics on 30th September, China’s manufacturing activity contracted for the fifth month in a row in September, as demand still has not caught up with supply.
MARIANN: The official manufacturing purchasing managers’ index or PMI stood at 49.8 points, just below the 50-point benchmark separating growth form contraction. This was the strongest reading since April. While the subindex for new orders rose from the previous month, it still fell short of reaching 50 points. At the same time, production rebounded and increased at the sharpest rate in five months.
The non-manufacturing PMI sank to the lowest level recorded since March, standing exactly at 50 points in September. This was in no small part due to a contraction in services activity, which ended an eight-month long sequence of uninterrupted – albeit relatively modest – growth. Subindexes for new orders and employment were both weighing down on overall activity, dropping at sharp rates both in the services and in the construction sectors.
(MUSIC)
RUI: In today’s global economic landscape, China’s economic influence is becoming increasingly prominent. However, despite significant achievements in various sectors, China also exhibits vulnerabilities towards global commodity markets.
MARIANN: These vulnerabilities are linked to several historical factors, including the continued reliance on imports for most commodities, China’s late arrival on the global marketplace, and the unequal distribution of power in some markets.
RUI: Join us on 18th October for the upcoming session of our Insight China Expert Talk series, where our guest speaker Dr Pascale Massot, who will introduce the key findings of her recent book China’s Vulnerability Paradox: How the World’s Largest Consumer Transformed Global Commodity Markets.
(MUSIC)
MARIANN: Thanks for listening, and don’t forget to tune in again next week.
RUI: In the meantime, please find useful links in the episode notes.