SwedCham China Insights for the week of September 9 – September 13

SwedCham China Insights for September 9 – September 13

Content Provided by Kreab

Top news of the week:

China and the U.S. to continue dialogue on energy transition, methane, and circular economy

9 September 2024

The meeting of the U.S.-China Working Group on Enhancing Climate Action in the 2020s was held in Beijing, China, from 4 to 6 September. China Special Envoy for Climate Change Liu Zhenmin, and U.S. Senior Advisor to the President for International Climate Policy John Podesta, stated that the two countries would continue to engage in dialogue on topics such as energy transition, methane emissions, and the circular economy.

WuXi AppTec and BGI Manufacturing respond to U.S. allegations: multiple factual errors found

10 September 2024

On 9 September local time, the U.S. House of Representatives passed the BIOSECURE Act with 306 votes in favor and 81 against. As a result, in the Hong Kong stock market, WuXi AppTec dropped over 10%, WuXi Biologics fell 7%, and WuXi Healthcare dropped more than 4%. In the A-share market, WuXi AppTec fell more than 6%, and BGI Genomics dropped over 3%.

Opening of the 2024 China International Fair for Trade in Services is imminent, more than 200 integration innovations will be released

11 September 2024

The 2024 China International Fair for Trade in Services (CIFTIS) announced to open starting from September 12 in Beijing. This is the first large-scale international exhibition held in China after the Third Plenary Session of the 20th CPC Central Committee.

China’s Commerce Minister Wang Wentao to visit Europe to discuss electric car case

12 September 2024

China’s Ministry of Commerce announced that Minister Wang Wentao will visit Europe and hold talks with European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis on September 19 to discuss the EU’s anti-subsidy investigation into Chinese electric vehicles.

11th Beijing Xiangshan security forum opens

13 September 2024

The 11th Beijing Xiangshan Forum, with the theme “Jointly Building Peace, Sharing the Future,” opened in Beijing on September 13. Amid multiple geopolitical tensions and warfare globally, the Forum still was attended by high level military delegations from more than 90 countries. “The number and level of participants has exceeded all previous years,” according to spokesperson of China Ministry of Defence.

Insight of the week:

In July, the EU announced tariff increases on Chinese car companies. Combined with the previous 10 percent tariffs imposed by the EU, the EU’s tariffs on Chinese imports of electric cars will rise to at least 27 per cent and up to nearly 50 percent. This week, both Norwegian Prime Minister Jonas Gahr Støre and Spanish Prime Minister Pedro Sánchez visited China and called for avoiding a “trade war or tariff escalation.”

Norwegian Prime Minister Jonas Gahr Støre made an official visit to China from 9 to 11 September. According to Norwegian authorities, by 2024, 90% of new cars sold in Norway will be electric vehicles, and by 2025, the country will stop selling new fossil fuel-powered cars. Regarding the EU’s impending tariffs on Chinese electric vehicles, Støre stated that Norway would not follow suit. Spanish Prime Minister Pedro Sánchez made an official visit to China from 8 to 11 September. On the 10th, Sánchez attended the China-Spain Business Forum in Shanghai, where he particularly discussed the current complex international trade situation. He expressed that the EU should reconsider imposing tariffs on Chinese electric vehicles.

The 27 EU member states will hold a final vote next month on whether to continue imposing high tariffs on Chinese electric vehicles. Regarding the EU’s anti-subsidy investigation into Chinese electric vehicles, Minister of Commerce Wang Wentao will soon visit Europe and hold talks with European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis on 19 September to discuss the case.

In the first half of 2024, China’s EV market continued to grow robustly, with over 9.8 million EVs sold globally, marking a 20% year-to-date increase. In China’s domestic market, the production and sales of EVs reached 4.929 million units and 4.944 million units, respectively, representing year-on-year increases of 30.1% and 32%.