The ICES Bulletin

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.  

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. 

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. 

• Noah Barking for GMF – Watching China In Europe 
• Global Times - China-France cooperation to set example for EU 
• SCMP - Together, China and the EU can be better prepared for a Trump return   
• Jörn Fleck, Josh Lipsky, and David O. Shullman for the Atlantic Council - Ursula von der Leyen set Europe’s ‘de-risking’ in motion. What’s the status one year later? 
• Tom Hancock for Bloomberg - US-Europe Gripes on China Overcapacity Aren’t All Backed by Data 
• Cornelius Welp for Worldcrunch - China's Industrial Overcapacity Has Already Started To Hit Europe 
• Marius Zaharia, Pasit Kongkunakornkul, Riddhima Talwani and Sumanta Sen for Reuters - What overcapacity? China says its industries are simply more competitive 
• Mr. Peng Gang at EURACTIV - The Essence of China-EU Trade and Economic Relations is Mutual Benefit and Win-Win 
• Noah Barking for GMF - Watching China in Europe—April 2024 
• Tongfi Kim for The Brussels Times - The EU must step up in the South China Sea to deter China’s gray-zone tactics