Mikołaj Wozniak, Konrad Falkowski
7.06. Dutch-Chinese East China Sea Incident
On June 7, this year, an different incidental occurred in the waters of the East China Sea. Ministry of Defence of the Netherlands reported in Communicationthat 2 Chinese fighters have orbited the Dutch Navy ship HNLMS Tromp respective times. Chinese aircraft besides approached the NH90 naval combat helicopter, which patrolled the area of this reservoir. The Dutch device was surrounded by 2 fighters and a helicopter. According to the Dutch Ministry, "this created a possibly dangerous situation". The Communication clarifies that the full incidental occurred in global airspace. HNLMS Tromp conducts patrol operations in the region and supports the UN coalition that oversees the enforcement of maritime sanctions against North Korea.
The Chinese side presented the incidental differently. A fewer days later, she made a strong mention to the Dutch position. According to Spokesperson of the Ministry of National Defence of the People's Republic of China Zhang Xiaoganga, "The Dutch side's words disturb the clear image of events and are an effort to hide provocation". The provocation is that the Dutch frigate found itself close the east part of Shanghai, which is simply a ‘provoking’ behavior. This was a legitimate justification for the Chinese for their actions. In addition, Zhang abandoned the Netherlands false The usage of UN IDs, which "caused tensions and undermined friendly relations between our countries". Zhang described all the confusion as “the shameful words and actions of the Dutch side”, which the People's Republic of China “deeply condemns”.
8.06. Macron and Biden on the request for cooperation with China and Indo-Pacific
8 June to mark the 80th anniversary of the Allied Army landing in Normandy president of the United States Joe Biden visited Paris. He besides spoke to his French counterpart – Emmanuel Macron.
We a joint statement China and Indo-Pacific issues were raised for the press. Macron stated that “on the economical front, we are afraid about China’s unfair commercial practices that origin overcapacity. This is highly crucial for the global economy, so we must act in a coordinated way." He thus suggested the request for cooperation on the Europa-US line. Biden, on the another hand, said that "in the Indo-Pacific region, we are jointly in favour of freedom of navigation, transparent governments and fair economical practices." Biden did not mention in a joint message by China, but this message leaves no uncertainty that the allegations were directed against the PRC. Therefore, both statements should be taken together, due to the fact that they are closely correlated.
Journalists Bloomberg Michelle Jamrisko and Alan Kratz, study that during an earlier discussion, before the press conference, Biden convinced Macron that the US and Europe should "co-operate" on home investment. It can be considered 1 way to fight Chinese subsidies.
The gathering and the president's words did not go unheard of in the Chinese press. According to the message, “Global Times“The United States intends to bring its allies to the Indo-Pacific region to support its own strategy and grow its presence.” This comment on Biden's position can be found in the text of Ma Jingjing and Fan Anqi. Sun Yanhong, quoted in this article from the Institute of European Studies of the Chinese Academy of Social Sciences, attributed "the two-way approach of France to economical and trade cooperation with China". On the 1 hand, the French search to increase the export of aircraft and agricultural products, and on the another hand they present a protectionist attitude.
10.06. Amsterdam leaves Chinese cameras
Amsterdam Councillor Alexander Scholtes, reported On June 10, the city authorities will remove Chinese cameras. The city utilized it to monitor safety and traffic. The action is due to concerns about the hazard of espionage, which the Netherlands has faced recently. The Dutch authorities are planning to replace about 1280 cameras.
The decision to abandon Chinese technology began in May 2023. It was then that the Amsterdam City Council adopted the proposal calling on the mayor and councillors to halt utilizing cameras produced in China. Cameras were suspected to send the recorded image to their maker and thus besides to the Chinese government. An crucial argument in the discussion was besides controversy Around camera manufacturers. Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. are accused of violating human rights in China against the Uighur minority. According to the Americans, the products of these companies are used, among others, to monitor Reeducation camps In Sinciang, China.
According to the information, Amsterdam not going to replace all cameras erstwhile for besides advanced costs. The mayor and the councilmen intend to change the terms of acquisition of fresh equipment. I will gotta meet the human rights criterion. Currently, all city units are looking, at the council's request, for alternatives to Chinese cameras being used. The exchange of Chinese cameras in Amsterdam is expected to take 5 years at accepted costs. So far, respective devices have been replaced in government office infrastructure. Similar initiatives were taken in the UK and Australia. Last month, the UK government decided to removal Chinese camera systems with delicate locations until April 2025. About 50% have already been exchanged.
The increased motivation of the Dutch authorities is due to fresh acts of espionage. In 2023, Dutch interview detected activities of Chinese hackers who spy on the secret network of the Ministry of Defence of the Netherlands.
12.06. EU announces customs duties on Chinese electrical cars
This is simply a long-awaited minute in EU-Chinese relations. 12 June 2024 Brussels announced the result of the European Commission’s investigation: ‘the chains of values for the production of battery-powered electrical vehicles (BEVs) in China benefit from unfair subsidies, which threatens to origin economical harm to EU electrical vehicle manufacturers’. The EC has asked the Chinese side to consult on this issue and to address the problem under WTO rules. It besides informed China of the introduction of ‘temporary countervailing duties’ on Chinese electrical cars. The duties will enter into force on 4 July 2024.
It is worth noting individual duties on 3 Chinese producers: BYD (17.4%), Geely (20%) and SAIC (38.1%). In addition, companies that cooperated in the Union investigation but were not included in the example will be subject to a weighted average tariff rate of 21%. Companies that have not undertaken specified cooperation are subject to a work of 38.1%.
An increase in tariff rates means additional costs for producers. It will besides force Beijing to halt subsidising its own electrical vehicles in order to compensate for the opportunities in the European market. However, many companies, including European companies, will, above all, endure losses.
Reuters collected Opinions and comments from the environment of car manufacturers:
- Oliver Zipse, CEO of BMW: “The decision on additional import duties is wrong. The European Commission thus harms European companies and European interests’;
- Volkswagen representation: "Compensation duties mostly are not the right solution to strengthen the competitiveness of the European automotive manufacture in the long term";
- Ola Källenius, president of Mercedes-Benz: “As an exporting country [Germany], we do not request to increase barriers to trade. We should work on removing trade barriers in the spirit of the planet Trade Organisation."
- In a akin critical tone, Hildegard Müller, president of the German Automotive manufacture Association (VDA), besides commented: “This measurement further increases the hazard of global trade conflict... possible harm may outweigh the benefits for the European – and in peculiar German – automotive industry."
In a completely different tone, the French Plateforme automobile (PFA), the French lobbying automotive group, said: "The guidelines of the European authorities for full electrical vehicles since 2035 ... simply reenforce the request to defend European interests against any possible anti-competitive practices".
You can't hide that the most voices of opposition are heard in the mainstream. They were utilized very rapidly by the Chinese propaganda tube, or “Global Times”. Here's 1 of those. fragment"The strong opposition from European automotive companies highlighted the unpopularity of EC decisions and the politicisation of trade issues by the EU executive body. After all, there is opposition to the industry, which the EC allegedly protects with additional tariffs."
Beijing itself besides referred to the situation. During the press conference, a spokesperson for the Chinese Ministry of abroad Affairs Lin Jian He argued, inter alia, that the EU "subsidisation investigation is simply a typical protectionism". He argued that further duties on electrical vehicles from China: "1. violate marketplace economy and global trade rules, 2. distort economical and trade cooperation between China and the EU, global supply chains and the automotive industry, and 3. harm Europe's interests". Finally, he pointed out that the PRC would not ignore the case: ‘China will take all essential measures to defend our rights and interests’.
14.06. Germany in search of an amicable solution to the dispute over Chinese electrical cars
Germany expects Chinese to ‘seriously move’ on duties on electrical cars imported from China. Berlin besides hopes that discussions and consultations will halt the increasing tensions in EU and PRC bilateral relations. Chancellor Olaf Scholz's government calls for a "pleasant" solution to this problem. This is how the national government press secretary Wolfgang Büchner presented the situation during the press conference“ From the point of view of the national government, it would be very desirable if we found an amicable solution to this issue. It is clear, however, that a serious Chinese movement is needed. The Chancellor has always stressed the belief that our companies can last in fair and free competition through high-quality products and services."
It is worth mentioning comments from the German Minister of Transport Volker Wising. In an interview given to the German paper Tagesspiegel, he expressed concern over the full situation. He stated that a trade conflict with the People's Republic of China would be a “catastrophe”: “A trade war with China cannot be desired. It would be a disaster for Germany and would not be beneficial for the European Union either." erstwhile asked what he thought about the direction the European Commission took, he replied: “I do not think about it. The task we have ahead of us is to guarantee that we compete on the marketplace and do not restrict competition. Reducing competition by advanced duties means that competitive force on European producers is decreasing. Consumers are losing out due to the fact that only competition provides low prices at the best quality."
It can be concluded from the above that Germany is very keen to avoid a situation where the Union and China are throwing further duties, which will only exacerbate the conflict. This will negatively affect German car giants, and this is de facto adverse to the interests of the West Germany itself.
17.06. Chinese Retaliation – European Pork
It was not essential to wait long for a Chinese consequence to the EU countervailing duties on Chinese electrical vehicles. 17 June Beijing announcedthat it opens an anti-subsidy investigation into pig meat from the associate States of the European Union. specified an investigation will hit Spain, the Netherlands and Denmark, the largest EU exporters of this meat. The Chinese decided to analyse only pork intended for human consumption, including fresh, cold and frozen cuts, as well as intestines, bladders and pork stomachs. The Ministry of Commerce of the PRC provided informationthat the investigation is to last a year, i.e. until June 2025. It warned that it could extend for another 6 months if necessary.
Interestingly, a fewer days earlier Reuters (referring to the Global Times), he claimed that Chinese companies had requested the Beijing Government to launch an EU pork investigation. Reuters indicates that “Global Times” – via Post on the X portal – did not indicate the companies that submitted the application. Only the origin to be given was ‘the individual in the industry’. W opinions John Clark, erstwhile manager of global Relations at the European Commission's Directorate-General for Agriculture and agrarian Development, is simply a purely political and retaliatory play by Beijing, which was closely coordinated. According to a erstwhile official, it is simply a shot in the knee for the Chinese themselves due to the fact that it hits their credibility internationally. And “the restoration of lost trust will take centuries.”
Reaction Spain, the EU pork export leader, can be considered balanced. Spanish economical minister Carlos Cuerpo acknowledged that the EU and Spain search a balance between the possible trade war with China and the protection of European products against unfair trade practices. "Just as there cannot be a trade war, there cannot be a grant race," Minister Cuerpo concluded. On the another hand, Spain's agriculture minister Luis Planas expressed hope for talks with Chinese partners: "I hope and hope there will be area for agreement, negotiation and avoidance of tariffs on agricultural and food products." European Commission Trade Ombudsman Olof Gill He spoke more decisively. He denied any dumping action. He pointed out that the EU would be looking at a Chinese investigation. As he himself admitted, "We are not worried" because, as he assured, all subsidies under the Common Agricultural Policy of the European Union are in line with WTO rules.
Is there truly nothing to worry about? On June 20, the Chinese Ministry of Commerce suggested that possibly Apply provisional anti-dumping measures on imports of pigmeat from the EU in the framework of an yearly investigation. This would lead to a simplification in European exports. According to manufacture experts, it can even lead to "a nightmare scenario” where the European pig manufacture will face lower prices and a decline in profitability. He'll besides gotta find a fresh receiver.
19.06. Vice Chancellor West Germany Robert Habeck, China. Launch of the EU-China consultation on trade tensions
Between 17 and 21 June, Vice Chancellor and Minister of economical Affairs and Climate Protection of the national Republic of Germany Robert Habeck made a journey to East Asia. His tourfocused in 2 countries: South Korea and the People’s Republic of China. He was accompanied by Bundestag MPs, journalists and representatives of medium-sized enterprises from German automotive, RES, metallic production, biopharmaceuticals and IT sectors.
The German minister arrived in China on June 19. Visiting plans included meetings with the Prime Minister of the PRC Li Qiang, Minister of Trade Wang Wentao and Minister of manufacture and Information Jin Zhuanglong. The talks were to focus on economical issues and their aim was to reduction the expanding tensions between the EU and China as a consequence of the planned increase of EU tariffs on Chinese electrical cars. Most likely as a consequence of EU action, the Chinese Prime Minister cancelled the gathering with the Vice Chancellor. As a result, Habeck had to change his plans and met with the president of the State improvement and improvement Committee (NDRC) Zheng Shanji. He discussed bilateral cooperation in the field of economic, energy and climate. During the visit, Vice Chancellor providethat the proposed EU tariffs on Chinese goods are not ‘punishment’. He besides accused Beijing of expanding trade with Moscow.
W follow-up Habeck's visits, June 22 began consultation between the EU and China on EU tariff increases for Chinese electrical vehicles. The video conference was attended by China's Minister of Commerce Wang Wentao and Executive Vice president and European Commission Trade Commissioner Valdis Dombrovskis. The gentlemen agreed to start negotiations. "This is fresh and amazing due to the fact that a circumstantial negotiating agenda has not been established in the last fewer weeks," Habeck said.
In the EU, Germany besides opposes possible duties on China. any say specialists, including Maximilian Butek, manager of the German Chamber of Commerce in China, higher customs charges will not defend German car manufacturers nor increase their competitiveness. The concerns of the German automotive sector in the context of the tightening of the trade conflict with Beijing concern mainly the hazard of disrupting their Chinese business. For automotive giants specified as Mercedes, Volkswagen and BMW, the Chinese marketplace is crucial: it accounts for 36% of sales. Last year Berlin agreed on its first strategy for China. According to her, Germany take Trying to conduct a dual-track policy: they grow their companies' access to the Chinese market, while at the same time pursuing a "risk reduction" policy. This means concomitant recognition Beijing for ‘partner, competitor and systemic rival’.
22.06. president Andrzej Duda in China
Official visit of Polish president Andrzej Duda to China started made June 22nd in Beijing. He was accompanied by the first woman of Poland Agata Kornhauser-Duda. This is Dudy's 3rd visit to China: the erstwhile visit took place in November 2015 and in February 2022 (in connection with the beginning ceremony of the 24th Winter Olympics).
During his 5 days of travel, president Duda met with China's leader Xi Jinping, Prime Minister Li Qiang and president of the Standing Committee of the Chinese Parliament Zhao Leji. He besides participated in the planet economical Forum in Dalian and in the Polish-Chinese economical Forum in Shanghai. At the end of his visit to the Polish embassy in Beijing, he presented awards to people who deserve the improvement of Polish-Chinese cooperation.
According to the announcement of the Polish president himself objective visits were convincing the Chinese side to open the marketplace to Polish agricultural products, including mainly Polish poultry and beef. An crucial aspect was besides the presentation of the Polish position on regional and global security. Andrzej Duda discussed with Xi Jinping the Polish position on the problems facing Europe and Poland, including issues of hybrid attacks by Belarus on the Polish border and the war in Ukraine. The Polish president stressed the importance of these topics, especially in the context of long-term friendly relations between China and Belarus and the strategical relations between China and Russia. In addition Moved the question of the future end of the war in Ukraine. "It is no secret that China's influence, including Russia, is enormous" – noted Duda. president Duda sought to make the Chinese side aware that global problems affect cooperation between Poland and China and the implementation of the Belt and way Initiative.
President Duda's visit took place erstwhile the fresh Polish government was working on changes in the Cyber safety Act. The Chinese side criticised these changes. He fears that they may negatively affect Polish-Chinese relations. The Chinese are afraid that the fresh regulations may limit the improvement of Chinese technology companies in tenders to build Polish 5G networks. Polish activities are in line with EU cyber safety legislation.
According to Chinese experts Poland can play an crucial function in bilateral negotiations between the EU and China, especially in the context of the hazard of trade war between them. In addition, Beijing tries to revive a platform for cooperation with Central and east Europe within 14+1 format. The cooperation task has existed for a decade, but the strength of cooperation is low due to China's poorer image among the countries of the region. This was mainly contributed by China's interior policy during the pandemic, the increasing Chinese-American rivalry and the silent approval of Beijing to a full-scale Russian invasion of Ukraine. Therefore, the visit of the Polish delegation is simply a signal that Beijing does not intend to quit its contacts with the countries of this region of Europe.
The final consequence of president Andrzej Duda's journey was abolition visas for Poles travelling touristly and businessly to China for 15 days. The visa-free movement will apply from 1 July. A number of trade agreements were besides signed during the visit, including the agreement concerning regionalisation sales of poultry and meat.
