The Changing Landscape of EU-China Trade
Issue 147, Monday 29th July 2024
We highlight the significant price disparity of Chinese electric cars in the EU compared to China and examine how the EU and the UK now account for nearly half of China’s electric car exports. Our analysis includes a look at the dramatic 66% decline in the European Union's trade surplus with China in autos and auto parts over the past seven years, as well as a decade-long overview of EU-China auto trade from 2013 to 2024.
We also cover the EU's new regulation banning furniture imports without precise coordinates and the forthcoming antidumping inquiry into China’s biodiesel. Additionally, we discuss China's expanding automotive and commercial vehicle exports to Russia and the rise of China’s platform economies, where underdogs are surpassing established titans.
We provide insights into China’s outbound investment outlook, the country's record-high ship exports, and the Mexican finance minister's concerns over Mexico’s heavy reliance on China. We touch on the strategic role of Chinese state-owned enterprises in Indian Ocean ports and analyze current freight fee trends. We conclude with the significant drop in Foxconn’s exports, Apple’s contract manufacturer.
Chinese E-Cars: Double the Price in the EU Compared to China
Folks from the research division of the Spanish bank BBVA have compared the prices of Chinese electric car models in the European Union and in China. As a general rule, the price of a Chinese brand electric car in the European Union is more than twice its price in the domestic market of China.
The EU and the UK Account for Nearly 50% of China’s Electric Car Exports
European Union's Trade Surplus with China in Autos and Auto Parts Plummets 66% in 7 Years
A Decade of Change: EU-China Auto Trade from 2013 to 2024
No Imports Without Coordinates
The EU Deforestation Regulation (EUDR) was enacted on June 29, 2023. However, it will only become applicable as of December 30, 2024. Suppliers of furniture to the EU must provide a full disclosure of their supply chain, including the wood and forest plots' geolocations.
Any China hand will tell you that the word 'geolocation' unleashes immediate alarm in China, and as expected, China rejects the EUDR rules on the grounds of national security.
Others take the matter seriously. The company planet.com operates 200+ satellites and offers a tailor-made solution to be fully EUDR compliant.
EU to Launch Antidumping Inquiry into China’s Biodiesel
The EU will impose temporary anti-dumping duties of 12.8% to 36.4% on biodiesel imports from China.
China's Only Growing Major Export to Russia: Automotive and Commercial Vehicles
Automotive and commercial vehicles, computers, and cellphones account for nearly 60% of China exports to Russia. While automotive and commercial vehicles grow 11%, the two others drop 1% and 7% respectively.
Platform Economy: When the Underdog Surpasses the Titans
The paradigmatic examples of new productive forces for the Chinese government are solar panels, Li-ion batteries, and electric cars. However, all of these have been surpassed by the platform economy, where companies like Temu, Shein, and AliExpress export a wide variety of products, from electronics to clothing and accessories, at affordable prices.
Faced with the evidence that 'cheap China' is back, aided by a depreciated yuan against the dollar, even the Third Plenum includes the platform economy as a sector to be promoted until 2029. It has become China's second-largest export category and is growing rapidly.
If you don't believe it, just look at the export figures to the European Union.
China’s Outbound Investment Outlook
Based on new data, we have updated our forecast for 2024.
China to Reach Record High in Ship Exports
Finance Minister: Mexico is Too Dependent on China
Mexico's Finance Minister Rogelio Ramírez stated that China and Mexico do not have fair reciprocal trade. This is almost not news. It has been happening for years and accelerated for various reasons during the Trump and Biden administrations.
Chinese SOEs in Indian Ocean Ports: Development, Leasing, or a Mix of Both
Freight Index for Settled Rates Grows, Unstoppably?
The growth is not limited to the Asia-Europe lanes. Magnus Lepasalu, cofounder of Estonian digital forwarder MyDello, reports a nearly 200% increase in freight fees on the route from Southeast Europe to Northern Europe over the past year.
Sources in China claim supply and demand are stabilizing, and fees will come down for departures from mid-August onwards. However, we are not entirely sure. Shipments of Christmas goods usually start around July and continue through September. In October, China is on holiday for the first week, so this period does not act as a buffer. This timing ensures that the products arrive in stores well before the holiday shopping season begins in late November.
Foxconn's Exports of Apple Products Cut in Half Compared to Last Year
