SwedCham China Insights for week of September 30 – October 12

SwedCham China Insights for September 30 – October 12

Content Provided by Kreab

Top news of the week:

China issues regulations on network data security management

30 September 2024

On September 30, the State Council introduced the new Network Data Security Management Regulations, which will come into effect on January 1, 2025. With a focus on safeguarding the rights of individuals and organizations while ensuring national security and public interests, the regulations set out comprehensive guidelines on personal data protection, cross-border data transfers, and the responsibilities of internet platform providers.

China, U.S. health departments agree to strengthen institutional dialogue

1 October 2024

Chinese and U.S. health officials have agreed to strengthen communication, enhance cooperation between technical agencies, and improve coordination on global health affairs during their recent talks in Washington, D.C. This marks the first ministerial-level visit by China’s health authorities to the United States since 2017.

China expresses deep concerns about situation in Middle East

2 October 2024

On October 2, the Chinese Foreign Ministry expressed deep concerns over the turmoil in the Middle East, stressing that China opposes the violation of Lebanon’s sovereignty, security and territorial integrity and opposes moves that fuel antagonism and escalate tensions.

Xi says to continue expanding China-Russia all-round practical cooperation

3 October 2024

On October 2, President Xi Jinping said that he stands ready to work with Russian President Vladimir Putin to take the opportunity of the 75th anniversary of diplomatic ties to continue expanding all-round practical cooperation. Xi made the remarks in a congratulatory message sent to Russian President Vladimir Putin on the 75th anniversary of diplomatic ties between the two countries.

China opposes EU tariffs on EVs, urges resolution through negotiation

4 October 2024

On October 4, China’s Ministry of Commerce (MOFCOM) expressed strong opposition to the EU’s decision to impose anti-subsidy tariffs on Chinese electric vehicles (EVs), following the EU’s vote in favor of the measure.

EU’s extra tariffs on China-made EVs spark backlash

5 October 2024

The European Union (EU) voted on October 4 to impose tariffs of up to 45% on imports of battery electric vehicles (EVs) manufactured in China, a move that has ignited significant opposition from various EU member states and the automotive industry. In response, the China Council for the Promotion of International Trade expressed its firm opposition on October 5, adding that China and the EU should resolve their differences through dialogue to reach a solution that aligns with the interests of both parties.

China home sales rise after stimulus measures, state media says

6 October 2024

China’s home sales rose during the National Day holiday after a string of property stimulus measures to boost the country’s beleaguered real estate market since late September, state media reported on October 5.

China’s foreign exchange reserves rise to US$3.316 tln in September

7 October 2024

China’s foreign exchange reserves climbed to US$3.3164 trillion at the end of September, a US$28.2 billion increase, or 0.86 percent increase, compared to the end of August, according to data released by the State Administration of Foreign Exchange (SAFE).

China’s top economic planner confident in achieving 2024 development goals

8 October 2024

Zheng Shanjie, Chairman of China’s National Development and Reform Commission, expressed full confidence in achieving the tasks and the goals set for economic and social development in 2024, and pledged a raft of incremental pro-growth policies to shore up the country’s economic growth during a press conference.

Chinese commerce minister, U.S. commerce secretary hold phone talk

9 October 2024

China’s Commerce Minister Wang Wentao held a telephone talk with U.S. Commerce Secretary Gina Raimondo on October 8, during which the Chinese side expressed serious concerns over the US semiconductor policy toward China and restrictions on Chinese connected vehicles, and he urged the US to lift sanctions as soon as possible.

China issues guidelines on accelerating development, utilization of data resources

10 October 2024

The general offices of the Communist Party of China Central Committee and the State Council have unveiled a set of guidelines on accelerating the development and utilization of public data resources, to provide solid support for making the digital economy strong and building new competitive advantages for the country.

China publishes a draft law on private sector promotion

11 October 2024

On October 10, China’s Ministry of Justice and the National Development and Reform Commission (NDRC) published a draft law on private sector promotion to solicit public opinion.

China to defuse local debt risks, stabilize property market

12 October 2024

China will soon introduce targeted fiscal measures to boost the economy, including increasing the debt ceiling to help address local governments’ hidden debts, Minister of Finance Lan Fo’an announced on October 12. The package will use tools like local government special-purpose bonds, special funds, and tax policies to stabilize the property market. Additionally, special treasury bonds will be issued to help state-owned commercial banks replenish core tier-1 capital.

Insight of the week:

On October 4, the European Union voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs). “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of BEVs from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement. The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe. Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early July, but were revised in September based on “substantiated comments on the provisional measures” from interested parties.

EU members were divided on tariffs. Germany, whose car manufacturing industry is heavily dependent on exports to China, was against them. However, France, Italy, and the Netherlands were reported to have backed the import taxes. 

China’s Ministry of Commerce (MOFCOM) expressed strong opposition to EU’s imposition of anti-subsidy tariffs on Chinese electric vehicles. MOFCOM said that China’s position is consistent and clear: China firmly opposes the EU’s unfair, non-compliant and unreasonable protectionist practices regarding the EU’s anti-subsidy case against China’s EVs, and it firmly opposes the EU’s imposition of anti-subsidy tariffs on Chinese EVs. The ministry said that China has always maintained the utmost sincerity in properly handling differences through dialogue and consultation. MOFCOM also said that China firmly opposes the EU’s final ruling draft but has also noted the EU’s expressed political will to continue resolving issues through negotiation. According to MOFCOM, the China-EU technical teams would continue negotiations on October 7. According to China’s state media, sources familiar with the matter revealed that recently, China, the U.S. and the EU have engaged in intensive communication on trade issues such as EVs.

On October 8, China imposed temporary anti-dumping measures on brandy imports from the EU, hitting brands from Hennessy to Remy Martin. In a sign of rising trade tensions, China’s ministry added in another statement that an ongoing anti-dumping and anti-subsidy investigation into EU pork products would make “objective and fair” decisions when it concludes.