China to deepen trade ties with Europe, says Economist
By Fortune Abang
Chim Lee, Senior China Analyst at the Economist Intelligence Unit, says China is set to strengthen its trade relations with Europe, viewing the continent as a vital market.
Lee disclosed this on Friday during a global virtual update on the outcome of China-European Union (EU) trade negotiations.
He explained that this move comes in spite of recent trade friction between China and the EU, including the EU Commission’s imposition of anti-subsidy tariffs on electric vehicles (EVs) imported from China.
According to Lee, China’s Ministry of Commerce has filed a lawsuit with the World Trade Organisation (WTO), deeming the EU’s decision unacceptable and a violation of WTO rules.
He further noted that there is still room for negotiation, with bilateral talks ongoing after Brussels sent a technical team to Beijing.
Lee said, “Italian President Sergio Mattarella is visiting China shortly after the French Minister Delegate Sophie Primas, which is seen as an effort to prevent further escalation.
“Considering that EVs are one of more than 30 Chinese products the EU is investigating, there is potential for the situation to worsen. However, if you look at China’s response, the retaliation has been targeted.
“To date, China has launched probes into brandy, dairy, and pork imported from the EU.
“This follows a preliminary ruling that confirmed brandy dumping from the EU but imposed no duties.
“Provisional measures, in the form of cash deposits, were implemented only after EU member states agreed to enact the long-discussed tariffs last month”.
The analyst added that China would continue to seek market share not only by establishing its own plants, but by working with European partners to set up local production.
He mentioned that Chinese companies are exploring opportunities in Latin America and Southeast Asia, beyond Europe, for exports and localised production.
China currently accounts for 60 percent of the global EV market.
Lee also noted that China’s focus on localised production and re-industrialisation in Europe is expected to grow.
He said, “China and the EU are working to strengthen their trade ties, despite recent tensions”.
The Chinese Ministry of Commerce has reaffirmed its commitment to resolving differences through dialogue.
“While France’s Minister Delegate, Sophie Primas, emphasised the need to resolve trade disputes through consultation, Europe accounted for 41.27 percent of China’s battery EV exports in 2023, with Tesla alone making up 28 percent.
“Chinese firms view Europe as a vital market and are exploring ways to increase their market share, including partnerships 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) (www.nannews.ng)
Edited by Francis Onyeukwu and Abiemwense Moru
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