Foreign
CHIM Lee, Senior China Analyst at the Economist Intelligence Unit, says China is set to strengthen its trade relations with Europe, considering the continent a vital market.
Chim Lee, Senior China Analyst at the Economist Intelligence Unit disclosed this on Friday during the globally virtual update on outcome of the China-European Union (EU) trade negotiations.
He explained that the move comes in spite of the recent trade friction between China and the EU, which saw the EU Commission impose anti-subsidy tariffs on Electric Vehicles (EV) imported from China.
According to him, China’s Ministry of Commerce has filed lawsuit with the World Trade Organisation (WTO), deeming the EU’s decision unacceptable and a violation of WTO rules.
He further stated that there was still room for negotiations, with bilateral talks ongoing after Brussels dispatched a technical team to Beijing.
Chim said, “Italian President Sergio Mattarella is visiting China on the heels of French Minister Delegate Sophie Primas, which are considered as moves to avoid further escalation.
“Considering that Electronic Vehicles (EV) is one of the 30-plus Chinese products the EU is probing into, there are definitely possibilities of worsening of situation, but if you look at measures China has taken in response, the retaliation is targeted.
“So far, China has already launched probes into brandy, dairy and pork imported from the EU.
“This follows preliminary ruling without any duties against confirmed brandy dumping from the EU; provisional measures in form of cash deposits were imposed only after the EU member states agreed to impose the long-discussed tariffs earlier last month.”
The economist also said China would continue to seek ways to gain market share, not only by establishing their own plants, but by working with their European partners to set-up production locally.
He mentioned that Chinese companies were exploring opportunities in Latin America and Southeast Asia, beyond Europe, for exports and localised production with China accounting for 60 per cent of the global EV market.
Also, that the country’s focus on localised production and re-industrialisation in Europe was expected to grow.
Chin said, “China and the EU are working to strengthen their trade ties, in spite of recent tensions.
The Chinese Ministry of Commerce has reaffirmed its commitment to resolving differences through dialogue.
“While France’s Minister’s delegate, Sophie Primas emphasised the need to resolve trade disputes through consultation, In 2023, Europe accounted for 41.27 per cent of China’s Battery EV exports, with Tesla alone making up 28 per cent.
“Chinese firms see Europe as a vital market and are exploring ways to increase their market share, including partnering with European companies to establish local production.
“Beyond Europe, Chinese companies are expanding into Latin America and Southeast Asia, focusing on exports and localised production.
“This move is not only a response to European trade barriers but also a strategic push into new markets.” (NAN)
8th November, 2024.
C.E.
Tags: Chim Lee
