The ICES Bulletin
- Bringing you the latest insights on China-Europe relations -
Dear ICES friends...
We are delighted to present you the latest issue of our bi-monthly
Newsletter. We warmly invite you to take a look at our takeaway, the events we participated on,
and this month's recommendations.
- Editor's Note -
Few relations are as crucial and valuable as the ones, past
present and future, connecting Europe with China. At the ICES, we believe regular
knowledge-sharing can be the bedrock that empowers mutually beneficial partnerships and the
foundation for fruitful collaborations. In this biweekly newsletter, we identify and
highlight the latest ideas and developments in a variety of fields, in view of improving
cross-continental communication and understanding.
The ICES' Takeaway from this edition:
China's recent efforts to attract foreign investment, especially in high-tech and financial sectors, indicate a desire for greater international engagement. Meanwhile, the commercial ties between China and Europe are overshadowed by concerns lingering among foreign businesses operating within China, particularly in the EU, and the initiation of new probes into Chinese subsidies which add tension to the bilateral relationship. Despite these challenges, upcoming diplomatic engagements, such as the visit of Chancellor Olaf Sholtz to China and the anticipated summit between Chinese President Xi Jinping and French President Macron, offer the potential for reshaping power dynamics. Simultaneously, the EU and the US are moving towards closer cooperation to address shared concerns about China, although this remains delicate due to differing views between the two and among the EU member states.
NEWS ROUND:
BUSINESS & TRADE
Ireland Welcomes New Chinese Enterprises
Despite the warnings raised by some analysts on the possibility of backfiring, the Irish
government is welcoming big Chinese-owned tech firms to help drive the country’s economy and
diversification.
Unease and Difficulties for Businesses Operating in China
The EU Chamber of Commerce in China (EUCCC) and the China Macro Group consultancy have released
a study urging Chinese leaders to do more to address the concerns raised by foreign companies
operating in the country. The study presents the concerns shared by American and European companies,
stating that doing business in China is becoming tougher and increasingly uncertain.
China Issues an Action Plan to Attract Foreign Investment
China’s State Council has issued a broad plan to attract foreign investment, with targeted
measures including expanding market access in the high-tech and financial sectors, facilitating
cross-border data flows and promoting international business travel. The plan comes as an effort
to boost confidence and address the claims raised by foreign investors.
EU Says CRMA is not Aimed at China
The recently adopted EU Critical Raw Materials Act (CRMA) is aimed at diversifying sources
of supply rather than at antagonising China, declared a senior EU official. In the context of
strengthening and diversifying the bloc’s economic security.
EU Launches Probe into Chinese Wind Turbine Subsidies
The Commission has announced a new investigation into Chinese suppliers of wind turbines and
the potential of state subsidies allowing Chinese producers to undercut domestic turbine manufacturers
under the auspices of the bloc’s Foreign Subsidies Regulation (FSR). As a response, China has
accused the EU of protectionism and “reckless distortion” of the definition of subsidies, and
the CCCEU has named the decision as an act of economic coercion.
German Firms Believe to Face Unfair Competition in China
A survey from the German Chamber of Commerce in China has found that a two-thirds majority
of businesses believes it faces unfair competition when operating in China, Germany’s largest
trading partner. The results reflect the latest difficulties perceived by foreign businesses
in the country, particularly around market access.
China Commerce Minister Visits Europe
Stopping in France and Italy, Minister Wang Wentao reiterated Beijing’s stance that Chinese
EV makers did not depend on subsidies to gain a competitive advantage and highlighted the
Chinese government would actively support firms to safeguard their legitimate rights and
interests. Wang also profited from the visit to reiterate that the Beijing’s cognac probe is
not linked to the EU’s EV case.
Dutch set to Comply with U.S. Demands in China Exports
Despite some reluctance from the Dutch government, public statements and national security
interests suggest the former will comply with US demands that ASML stops servicing some equipment
sold to Chinese customers. If adopted, the decision would entail a setback for China’s attempts
to build up its domestic chip industry.
China Commerce Minister Visits Europe
Stopping in France and Italy, Minister Wang Wentao reiterated Beijing’s stance that Chinese
EV makers did not depend on subsidies to gain a competitive advantage and highlighted the
Chinese government would actively support firms to safeguard their legitimate rights and
interests. Wang also profited from the visit to reiterate that the Beijing’s cognac probe is
not linked to the EU’s EV case.
BUSINESS & TRADE
Vestager Says G7 Need Tech Trust Tests to Counter China
European Commission Vice-President Margarethe Vestager stated that G7 countries, and other
like-minded partners, will have to develop a list of trustworthiness criteria for critical clean
technologies to counter Chinese influence.
EU Laws on Recycling and Human Rights to Sharply Affect Trade with China
The EU Council has voted to adopt new rules requiring big businesses to conduct human
rights and environmental audits of their overseas suppliers. Moreover, the body approved a
de facto ban on the import of recycled plastics from outside the EU. Altogether, the
legislations could damage Chinese business interests in Europe and complicate operations for
European firms in China, causing consternation inside and outside the bloc.
France to Balance the EU-China Relationship in Upcoming Visit
Before Chinese President Xi Jinping’s expected visit to Paris in May, it was reported that
China hopes to improve its relationship with the EU through France as France seeks to act as
a balancing power influencing China to put pressure on Russia. France’s objective has
already been witnessed through Foreign Minister Séjourné’s comments during the talks to
discuss closer bilateral ties with his counterpart Wang Yi in Beijing.
EU-US 6th Trade and Technology Council Ministerial Meeting has China in mind
In light of a potential Trump mandate, representatives from the two sides aimed to bolster
the council's continuity by agreeing in advancing transatlantic cooperation on AI, 6G and
critical technologies, promoting easier and more secure trade, and defending human rights
amidst evolving geopolitical digital challenges. However, the event was marked by a lack of
major announcements, and China’s looming shadow, ranging from where and how to address the
country, to committing to extend their cooperation on identifying disruptions in the
semiconductor sector.
8th Trilateral EU-US-China Summit on Product Safety
China, the US and the EU reached a new consensus on deepening cooperation on consumer
product safety during the 8th Trilateral EU-US-China Summit on Product Safety held in
Hangzhou, China. The three sides agreed to build common standards, deepen common
supervision, focus on common protection of consumer rights and interests, and strive to
protect the common safety of consumer products.
China Warns Dutch PM Rutte on Export Controls
Answering to the decision of imposing export controls on microchips gear, Chinese President
Xi Jinping has warned Dutch Prime Minister Rutte against creating “tech barriers”. The Chinese
leader added that nothing could stop the pace of China’s technological development and progress.
In turn, he offered to import more from the Netherlands as well as ramping up cooperation in
areas such as AI.
HAINAN
Hainan showcases green transformation with near-zero carbon demonstration area
The Boao near-zero carbon demonstration in Qionghai, Hainan, achieved self-sustaining electricity
consumption and began operations on 18 March 2024. The site holds promise as a global showcase
for China’s green and low-carbon development concepts, technology and practices, and encourages
tropical regions across the globe to follow.
Hainan Hosts the BFA Annual Conference 2024
The Province of Hainan hosted the 2024 Boao Forum for Asia Annual Conference, setting the
focus on how the international community can work together to address challenges in the
areas of global economy, social development, international cooperation and scientific and
technological innovation. The forum presents a unique opportunity for Asian countries to
review and discuss common problems and develop common action plans and policies.
Hainan FTP to Implement New Negative List for Foreign Investment
Authorities have announced that, in 2024, the Hainan Free Trade Port (FTP) will implement a
new negative list for foreign investment and set up and operate multi-functional free trade account.
The decisions stem from an attempt to increase the inflows of goods and capital in the Province
of Hainan.
RECOMMENDED RESOURCES
For this edition, we suggest you check the following materials:
PREVIOUS EVENTS
For this edition, we suggest you check the following materials:
9 April 2024. PubAffairs. Reforming the Single Market and Fostering EU Competitiveness:
Can the EU Regain Its Edge?
The event gathered Outi Slotboom, Director for Strategy and Economic Analysis at DG GROW,
Jacques Pelkmans, Associate Senior Fellow at CEPS, Frank Niederländer, Head of Governmental
Affairs Europe at BMW, William De Vijlder, Group Chief Economist at BNP Paribas, and moderated
by Paola Tamma, Brussels Correspondent for the Financial Times. Lucas Lenchant, Senior Advisor
for the EIB, set the scene through a keynote speech. The speaker highlighted the potential
and the benefits deriving from the Single Market but also remarked on the strong fragmentation
that undermines said potential and deepens investment gaps. Then, the experts followed sharing
their views on the achievements secured by the EU, such as the Digital Market and the unitary
patent, as well as the major challenges and limitations the bloc faces, like budget allocation,
market fragmentation, and risk-bearing capacities.
10 April 2024. Friends of Europe. A new era for defence: In Conversation With the
President of the Republic of Finland, Alexander Stubb.
With the moderation of Dharmendra Kanni of Friends of Europe, preceded by Geert Cami from
the same organization, the event had Mr. Alexander Stubb, President of Finland speaking on
the topic of his country’s connection with both the EU and NATO. He also shared his views on
European security. He pointed out that both the EU and NATO are security providers and should
not be viewed in a binary fashion. According to him, Finland is a frontline country against
Russia and will not only be a beneficiary but is going to contribute to the security of the
continent. The president also pushed for a more geopolitical EU.
CONNECT WITH US
For this edition, we suggest you check the following materials:
LinkedIn: Institute for China-Europe Studies (ICES)
Twitter: @ICES-EU
If you are interested in publishing your article on our website, email us at: info@ices-eu.org, with the Subject 'Article Submission_YourName_YourSurname'.
Thank you for being a part of our newsletter community! We appreciate your continued support and engagement. Stay tuned for more exciting updates in our upcoming editions. If you have any suggestions or feedback, we would love to hear from you.
Please note that all news and views cited in this bulletin, if not otherwise indicated, do not represent the position of ICES.