SwedCham China Insights for week of November 25 – November 29

SwedCham China Insights for 25 November – 29 November

Content Provided by Kreab

Top news of the week:

China expands visa-free access to Japan, Bulgaria and other countries

25 November 2024

China has decided to expand its visa-free arrangements to include Japan, Bulgaria, Romania, Croatia, Montenegro, North Macedonia, Malta, Estonia and Latvia, effective from 30 November 2024 to 31 December 2025, foreign ministry spokesperson Lin Jian said on 22 November.

China says ‘no one will win in a trade war’ after Trump vows new tariffs

26 November 2024

Liu Pengyu, a spokesperson for the Chinese Embassy in the U.S., stated that no one benefits from a trade war after President-elect Donald Trump pledged new tariffs on Chinese goods. Trump stated he would impose “an additional 10% tariff, on top of any existing tariffs” on China, in some of his most detailed remarks on how he will implement his economic policies. Trump also mentioned plans to implement a 25% tariff on imports from Canada and Mexico.

2nd China Intl Supply Chain Expo opens in Beijing

27 November 2024

The second China International Supply Chain Expo (CISCE), the world’s first national-level exhibition dedicated to supply chains, opened in Beijing on 26 November. Under the theme “Connecting the World for a Shared Future,” this year’s event highlights the interconnected nature of the supply chain through its booth design and exhibition areas.

Action plan released to accelerate digitalization of the finance sector

28 November 2024

On 27 November, the People’s Bank of China, together with six other departments, released a development action plan to promote the high-quality development of digital finance, aiming to establish a financial system that highly adapts to the development of the digital economy by the end of 2027.

Next-generation BeiDou system set to be developed

29 November 2024

According to the BeiDou Satellite Navigation Development Plan for 2035 announced recently, China aims to develop the next-generation BeiDou system that is technologically more advanced, functionally more powerful and offers higher quality services. An experimental satellite of the system is scheduled for launch around 2027, while network deployment will begin by around 2029 and be completed by 2035.

Insight of the week:

On 22 November local time, the U.S. Department of Homeland Security (DHS) announced the addition of 29 entities based in China to the so-called Uyghur Forced Labor Prevention Act (UFLPA) Entity List. This brings the total number of entities, including named subsidiaries, on the UFLPA Entity List to 107, according to a statement from the Office of the United States Trade Representative. Effective 25 November, goods produced by these 29 entities will be restricted from entering the U.S. These newly designated entities manufacture various products, including agricultural products, aluminum products, and polysilicon materials, as well as mine and process nonferrous metals such as copper, gold, and nickel, as noted in the statement. The UFLPA was signed into law by U.S. President Joe Biden in December 2021.

China strongly condemns and firmly opposes the US sanctions on the 29 Chinese firms under the UFLPA, a spokesperson for China’s Ministry of Commerce said. This move is completely unfounded, and uses “human rights” as a cover for outright bullying and economic coercion, according to the spokesperson. The spokesperson also reiterated China’s opposition to all forms of “forced labor” and asserted that no such practice exists in China’s Xinjiang Uygur Autonomous Region. “We urge the US to stop its political manipulation and smear campaign, and end its unjust suppression of Chinese companies. China will take necessary measures to firmly safeguard the legitimate rights of its businesses,” the spokesperson added.

Separately, Reuters reported that the Biden administration is set to unveil new export restrictions on China, potentially as soon as the week of 25 November, according to an email from the U.S. Chamber of Commerce to its members. The new regulations could add up to 200 Chinese chip companies to a trade restriction list, limiting most U.S. suppliers from shipping goods to the targeted firms, the email said, according to an excerpt seen by Reuters. The Commerce Department, which oversees U.S. export policy, aims to publish the new regulations before the Thanksgiving break, according to the email. The Chamber of Commerce did not respond to a request for comment. The Commerce Department declined to comment. Furthermore, another set of rules curbing shipments of high-bandwidth memory chips to China is expected to be unveiled next month as part of a broader artificial intelligence package, the email said.

China’s Foreign Ministry slammed the U.S.’ planned new restrictions on chip exports and pledged to take resolute measures to firmly defend the legitimate and lawful rights and interests of Chinese companies.