It´s Official: EU Imposes Tariffs on Chinese Electric Vehicles
Issue 153, Monday 8th July 2024
The European Commission enacts a countervailing duty on imports of new battery electric vehicles designed for the transport of persons originating from the People’s Republic of China.
Immediately, the Chinese lobby in Brussels, the China Chamber of Commerce to the EU (CCCEU), vice-chaired by Chinese car manufacturer BYD, tweeted a quite impressive alliteration: 'The chamber is deeply disappointed and dissatisfied….'
In the meantime, the EU claims the measures are based on facts, and states that any negotiated outcome must address
the injurious subsidization identified in the investigations
Chinese Tabloid Warns of Trade War
On July 4th, as the European Union implements tariffs on Chinese electric cars, the Global Times warns that if the EU persists in its current stance, it could trigger a trade war.
In the Meantime, BYD Eyes $1 Billion E-Car Plant Next to the EU
Turkey’s President, Recep Tayyip Erdogan, is expected to officially announce the deal on July 8.
If we recall correctly, according to the current rules of origin, e-cars must fully originate in Türkiye in order to qualify for the lower preferential tariff under the EU-Türkiye agreement.
China continues its anti-dumping investigation into French Cognac
The Trade Remedy Investigation Bureau of the Ministry of Commerce has scheduled a hearing on the brandy anti-dumping case for July 18, 2024. So far, Martell, Rémi, and Hennessy have confirmed their attendance. Questions for the hearing must be submitted in advance.
Anecdotally, one can imagine the original creators of the treasured liquid known as Cognac turning in their graves at hearing it referred to as báilándì or brandy. If you're looking for a creative way to meet your maker, just stroll into a bistro in Segonzac and ask le patron for a 'brandy.' That should do the trick!
The deadline for EU pork producers to register for the anti-dumping investigation by the Chinese government ended on July 7
The probe, initiated by the domestic industry group, the China Animal Agriculture Association, will cover anti-dumping. It is largely seen as nothing more than retaliation against the EU’s tariffs on Chinese electric cars.
China's Legacy Chip Production Under Scrutiny
After the U.S. initiated its investigation in January 2024, the EU has followed suit and is now ready to investigate China’s plans to expand the production of so-called legacy chips. These legacy chips may not be as advanced as the AI chips, which can be priced at several thousand dollars each, but they are still important for many applications.
China will decrease its share of advanced chip manufacturing from 8% in 2023 to 6% by 2027, while simultaneously planning to increase its share of legacy chips from 31% to 39% over the same period.
China's Impressive Demand for Machinery to Print Circuits onto Wafers
Trade EU-China: Trade Balance
The reader is invited to interpret and draw their own conclusions, and we would love to hear them.
Trade EU-China: Imports
The reader is invited to interpret and draw their own conclusions, and we would love to hear them.
Trade EU-China: Exports
The reader is invited to interpret and draw their own conclusions, and we would love to hear them.
Temu, Shein, and AliExpress to Start Paying Customs Duties on Cheap Product
As we reported on June 22 in SOAPBOX, the European Commission plans to scrap the €150 threshold below which goods are exempt from customs duties
Temu, Shein, and AliExpress will have to start paying customs duties for cheap products. The category of affordable goods shipped via online e-commerce platforms is the second-largest export from China.
Year on year, it grows 30% by value and 10% by volume, equivalent to 350 cargo planes daily. The U.S. (26%), the EU (21%), and the UK (4%) combined represent more than half of the share of China’s low-cost goods sales.
China's Car Imports from EU: Dominated by Two Member States
For two decades, China has imported the majority of its cars from the European Union from only two member states.
Handle the chart with caution, as it may be somewhat misleading. Other member states contribute significantly through the auxiliary industry and the structure of the EU Single Market, where much of the EU's strength lies.
Indonesia to impose up to 200% import tariffs on Chinese goods
China's reaction may be harsh, as it is likely to view Indonesia's actions as opportunistic. While China is already struggling with increased tariffs on its goods from the West, Indonesia's move to further complicate matters could be seen as an attempt to take advantage of China's weakened position.
In Indonesia the feeling is the opposite. Its Trade Minister said that
“the trade war is causing an oversupply in China as their products face rejection by Western countries, forcing them to redirect exports to other markets like Indonesia.”
Splinter Trade in AstraZeneca's Supply Chain
AstraZeneca has announced plans to establish manufacturing plants in China to serve the region exclusively.
Chinese Export Growth Appears to be Plateauing
We may be able to confirm this by next week
Only 5% of China’s Pharma Imports from Ireland and 12% of Semiconductors Are Via General Trade
Every year, when we review Ireland's trade with China, there are always people in beautiful Ireland who raise their eyebrows and question the figures. But these are the numbers.
The doubt might stem from overlooking that nearly 50% of China's imports from Ireland are pharmaceuticals and 33% are electronics. However,
Only 5% of pharma imports fall under General Trade. Over 90% are classified as Entrepot Trade.
Only 12% of integrated circuits and semiconductors imported fall under General trade. More than 85% are classified as Processing Trade.
Xi Urges Peru's President to Ensure the Timely Completion of the China-Funded Port
The port of Chancay is a multi-billion dollar investment by COSCO, one of China's state-owned flagship companies. Xi's meeting with Ms. Boluarte, the President of Peru, comes just after COSCO and the Peruvian government appear to have resolved the legal issues that emerged during construction.
The two countries claim to have upgraded a Free Trade Agreement, with negotiations that started in 2018.
It always seemed to us that completing the negotiations was highly contingent on COSCO resolving the legal obstacles it encountered with its investment and construction activities.
China's interest in Peru is twofold: investment for its state-owned enterprises, and importing mineral ores to satisfy China's voracious demand for copper.
China's PMI Employment Subindex 18 Months Under the Benchmark
China Further Extends Regulations on Rare Earths
It appears to be a work in progress that will be effective as of October 1, 2024.
Index of Freight Rates Goes through the Roof
In addition to well-known reasons for the surge in rates, such as insecurity at the Bab el-Mandeb Strait causing diversions via the Cape of Good Hope, there is now an imbalance in available containers. Pic is the index for Shanghai to Europe lanes.
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