"Zhou Zhi".
ccceued
Person
Press
Editor's note: Smile and send the old year to snow white, and welcome the bright new year. The New Year is about to begin, and the EU-China Chamber of Commerce wishes its members and readers a happy and prosperous New YearIn 2023, in the post-pandemic era, China and the EU will celebrate the 20th anniversary of the establishment of the Comprehensive Strategic Partnership, witnessing new developments in bilateral relations and economic and trade relations amid new opportunities and challenges. In 2023, after four years, the first in-person China-EU summit was successfully held in Beijing, and the two sides had a frank exchange of views. Over the past year, European Council President Charles Michel, European Commission President Ursula von der Leyen, Executive Vice President Dombrovskis, France's Emmanuel Macron and other high-level EU and heads of state have visited China to continuously promote China-EU cooperationOver the past year, the two sides have had in-depth economic and trade exchanges: China has implemented a visa-free policy for the EU5 countries, and the response has been enthusiasticBYD has established a new energy vehicle production base in Hungary to help build a green ecosystem in EuropeChina and Luxembourg entered the era of direct flights, and Zhengzhou-Luxembourg "Air Silk Road" passenger transport made its maiden flight. This week, the EU-China Chamber of Commerce released its 2023 year-end review, reviewing with you the development of China-EU economic and trade in 2023 and the work positioning of the EU-China Chamber of Commerce. Thank you for reading, and please write to info@ccceu to subscribe to the bilingual versionHappy New Year to you, EU!
Know-it-all-focus
This article is about 4000 words and takes about 10 minutes to read
As the two major powers in the world, the relationship between the EU and China is not only directly related to the interests of the two peoples, but also closely related to the prosperity and security of the world. The year 2023 marks the 25th anniversary of the establishment of the China-EU Summit mechanism and the 20th anniversary of the establishment of the China-EU Comprehensive Strategic Partnership. Looking back on this year, the tone of China-EU bilateral economic and trade relations has been consolidated, which mainly comes from the stable and strong determination of the economic symbiotic relationship, the tension of the continuous optimization of the first-class structure, the vitality of the business entity to maintain a positive trend and the potential for continuous expansion of cooperation areas.
(1) Determination: The economic symbiotic relationship is strong
Over the past 20 years, China and the EU have grown rapidly and become each other's second largest partners, forming a stable and strong economic symbiotic relationship. Since 2023, China and the EU have fully resumed exchanges at all levels, and dialogue and cooperation in various fields have been fully rolled out. The five EU-China High-Level Dialogues (HLDTs) and more than 70 working level dialogue mechanisms, ranging from leaders' exchanges to strategy, economy and trade, digital, environment and climate, and people-to-people relations, provide an institutional framework for the development of bilateral relations. Under the guidance of all-round and multi-level dialogue and cooperation, the bilateral quota has shown a stable or even positive momentum. According to data released by the General Administration of Customs of China, from January to November 2023, the total value of China and the EU** is 503 trillion yuan (RMB, the same below). Of these, exports to the EU 322 trillion yuan, imported from the European Union 181 trillion yuan. At the same time, according to the data recently released by China National Railway Group, as an important channel between China and Europe, from January to November 2023, a total of 16,145 China-Europe trains will run and 174 goods will be sent90,000 TEUs, a year-on-year increase, and the cargo volume has exceeded the total volume in 2022.
(2) Tension: **The structure is continuously optimized
Under the complex and severe international situation, China-EU economic and trade cooperation has made steady progress, continuously optimized its structure, shown strong resilience and vitality, and has achieved rich results in the fields of science and technology and green development. Nowadays, the interdependence of high-tech products between China and Europe has deepened, in the field of computer office equipment, electronic communications, electronic machinery, and chemical products, China has become the largest importer of the European Union, and in the field of electronic communications, instrumentation products, China is the largest export market of the European Union. In the green field, green transformation is the common direction of China and the EU to respond to climate change, and China and the EU have grown rapidly in green products such as lithium batteries, new energy vehicles, and photovoltaic modules. Driven by the slow recovery of the world economy in the post-pandemic era and the energy crisis triggered by the Russia-Ukraine conflict, the similar needs of China and the EU for the development of green industries and clean energy technologies have created a huge space for complementarity in the economic and trade relations established between the two sides, which will help to achieve a new level of China-EU economic and trade cooperation under the new situation.
(3) Vitality: The enthusiasm for enterprise cooperation is high
From the perspective of business entities, Chinese and European enterprises have also maintained a positive trend, and enthusiasm for cooperation is high. From January to September 2023, France and the Netherlands, as the leading European countries for investment in China, saw their direct investment in China increase by 121 year-on-year7% and 326%, showing firm confidence in investment and development in China. European companies also actively participate in important exhibitions held by China, such as the China International Import Expo, the China International Consumer Products Expo, and the China International Service Fair. The EU is an important overseas investment destination for Chinese companies, and it is also the region with the highest share of Chinese investment stock in developed economies. Although the investment fields, methods and entities are constantly evolving with market trends, the concept of Chinese enterprises to deepen their involvement in the EU remains unchanged. The President stressed that China is willing to regard the EU as a key partner in economic and trade cooperation, a priority partner in scientific and technological cooperation, and a credible partner in industrial chain cooperation, pursuing mutual benefit and win-win results and achieving common development. The prospects for China-EU economic and trade cooperation remain broad.
(4) Potential: The fields of cooperation continue to expand
Over the past 20 years, China and the EU have formed an all-round, multi-level and wide-ranging cooperation pattern. As two important markets in the world, there is great potential for cooperation between China and the EU in new areas such as green economic development, digital transformation and services, as well as in jointly tackling global challenges. For example, in terms of green economy, the EU has the world's leading green transformation system, driven by policy guidance, technological innovation and carbon trading mechanism, supported by a series of standards, while China has established the "dual carbon" goal, and the development of the new energy industry is very dynamicIn terms of digital economy, China and the EU have similar strategic goals for the development of the digital economy and have huge room for complementarity, with the EU having a complete digital regulatory system and China performing significantly in digital application and industrializationIn terms of services, the rapid growth of China-EU services**, the post-pandemic recovery and digitalisable services have provided new impetus for service industry cooperation between China and the EU. In addition, at this stage, the two sides have completed the publication of the second batch of the list of the China-EU Geographical Indications Agreement, added mutual recognition and mutual insurance of 350 landmark products, and led the formulation and update of the Common Taxonomy of Sustainable Finance, injecting new impetus into China-EU economic and trade cooperation.
However, in the context of profound changes in the international situation, the new crown epidemic and the Russia-Ukraine conflict have had a profound impact on both China and the EU. In recent years, the development of China-EU relations has also faced murmurs such as "de-risking", "reducing dependence" and "institutional rivals". As Fu Cong, head of the Chinese Mission to the EU and Ambassador Extraordinary and Plenipotentiary, pointed out in an exclusive interview with the Global Times a few days ago, although China and the EU have different historical and cultural traditions and social systems, China and the EU have different levels of development, are highly complementary economically, and their cooperation is far greater than competition, and consensus is far greater than differences. It should be noted that China-EU relations have stood at a new starting point, and with China and the EU reaching consensus in more areas, bilateral economic and trade cooperation is expected to overcome difficulties and obstacles and reach a new level.
In the past year, with the strong support of the Chinese Mission to the EU, the Economic and Commercial Office and the domestic competent authorities, and the joint efforts of all members and colleagues, the China Chamber of Commerce to the EU, Actively cooperate with the overall situation of the country's external work, organize major economic and diplomatic activities, safeguard the legitimate rights and interests of Chinese enterprises in Europe, publish annual flagship reports, enhance the influence of domestic and foreign communication, strengthen the construction of internal mechanisms and improve the level of professional management, and achieve remarkable results in various tasks.
(1) Build a platform for China-EU economic and trade cooperation to serve major agendas
During the critical period of the development of China-EU bilateral relations, the Chamber of Commerce has taken the initiative to create an atmosphere of mutually beneficial and win-win cooperation between China and the EU. In 2023, the Chamber of Commerce will actively organize more than 30 economic and trade dialogues, forums and symposia to promote the achievements of China-EU economic and trade development and enhance mutual understanding and trust between China and the EUActively cooperate with major diplomatic agendas such as the China-EU Summit and the China-EU High-level Economic and Trade Dialogue, and promote the steady and long-term development of China-EU economic, trade, investment and commercial relationsActively build the EU-China "General Chamber of Commerce", hold two major chamber of commerce activities in Europe, China and Europe, and create the "China-EU Business Leaders Roundtable Dialogue Meeting" as a brand event to jointly promote the steady development of China-EU economic and trade relations.
(2) Serve members and build a high-standard communication platform
The Chamber of Commerce adheres to the core purpose of serving Chinese enterprises, and builds a high-standard platform for economic and trade exchanges between China, the EU and member states. In 2023, the Chamber of Commerce will carefully organize the general meeting of the whole members and invite hundreds of Chinese and European enterprises to participate in the China-EU Business Summit Forum, and provide suggestions and suggestions for exploring cooperation between China and the EU in the fields of green and digitalBased on the construction of a think tank in the business community, the company and Peking University jointly held a high-level seminar on "Change and Development: China-EU Economic and Trade Relations under the New Situation", which attracted wide attention from all parties in the political, business and academic circles at home and abroadActively build a bridge of communication between enterprises and China and the EU, organize nearly 40 government and enterprise exchange activities of different specifications throughout the year, and at the same time make breakthroughs in high-level interaction with the European side, and establish contacts with the cabinet of leaders of EU institutions.
(3) In the direction of insisting on telling the story of Chinese enterprises, we will actively publicize the results to the outside world
The Chamber of Commerce firmly protects the interests of Chinese enterprises in Europe, and uses various platforms and channels such as WeChat*** official**, Baijia account, Twitter, LinkedIn and other platforms and channels to issue the voice of Chinese enterprises, and publicize the examples and images of Chinese enterprises in Europe fulfilling their social responsibilities and benefiting the local communityStrengthen exchanges and communication with local ** in Europe, and enhance European media's understanding of China by means of exclusive interviews and on-the-spot interviews. Through the release of official data, professional reports and information bulletins, we will publicize the vivid practice of Chinese and European enterprises in carrying out economic and trade cooperation and achieving mutual benefit and win-win results. In 2023, the Chinese Chamber of Commerce in the EU and Roland Berger jointly released the report "Building Mutual Trust and Creating Prosperity in China and Europe - Report on the Development of Chinese Enterprises in the EU 2023 2024" in Brussels, which received great attention from all parties and received enthusiastic responses, with 200 Chinese and foreign institutions covered, a record high, and the influence of the flagship report has increased significantly. At the same time, the construction of the communication power of the Chamber of Commerce has successfully achieved a historical breakthrough in domestic and international influence in 2023. According to incomplete statistics, since 2023, the Chamber of Commerce's previous activities and voices have received more than 1,100 reports and attention from Chinese and foreign ** and institutions.
(4) To safeguard the interests of Chinese enterprises in Europe, and continue to speak for Chinese enterprises
The Chamber of Commerce adheres to the core purpose of serving Chinese enterprises, effectively reflects the concerns and demands of Chinese enterprises, actively collects opinions and suggestions from member units, protects the rights and interests of enterprises in Europe, expands communication with all sectors of the EU, and promotes the optimization of the EU business environment. Closely follow the progress of the EU's unilateral economic and trade policies such as the EU's 5G security toolbox, the EU's countervailing investigation on electric vehicles in China, foreign direct investment review, foreign subsidies, international procurement tools, sustainable corporate governance, anti-coercion tools, banking supervision, the Net Zero Industry Act, the Battery Law, and the Critical Raw Materials Act, pay attention to the developments of the EU-US ** Technology Council and China-EU legislation and cooperation in digital, green, economic and trade aspects, etc., effectively reflect the concerns and demands of Chinese enterprises, and make every effort to safeguard the rights and interests of Chinese-funded enterprises. As a result, the Chamber of Commerce has become more attractive to Chinese companies in Europe, with a record number of new members. From January to mid-December 2023, there will be 20 new member units, an increase of about 25%, and its influence will gradually grow.
(5) Strengthen vertical and horizontal ties and make every effort to expand multi-faceted cooperation channels
In the complex context of the deepening of the geopolitical situation and the emergence of new development momentum of globalization, the Chamber of Commerce has given full play to its platform extension and radiation role to continue to expand its brand influence. In terms of vertical connections, the Chamber of Commerce actively mobilizes the characteristic role and enthusiasm of the business associations of the member countries, continuously strengthens the communication and coordination with the business associations of the member countries, and makes a unified voice through the joint organization of forums and activities. In terms of horizontal ties, China has actively expanded contacts and cooperation with its peers such as the European Union Chamber of Commerce in China, the EU-Japan Chamber of Commerce, the Europe-Korea Business Association, the EU-China Business Association, and the Belgian-Chinese Economic and Trade Commission. At the same time, it will strengthen exchanges and cooperation with European think tanks and academic circles, with a view to promoting the development of China-EU economic, trade and investment cooperation.
In 2024, the EU-China Chamber of Commerce will celebrate its fifth anniversary, which is a critical period for the Chamber of Commerce to sum up its development experience and lessons and set sail again for the future. In the new year, the EU-China Chamber of Commerce will continue to uphold the guiding spirit of "listening to voices, providing good services, establishing an image, and building China's 'golden signboard'", with the purpose of serving the core interests of Chinese enterprises, and the responsibility of promoting the development of Chinese enterprises in the EU and striving for a fair, just and non-discriminatory business environment.
Since the establishment of diplomatic relations between China and the EU in 1975, the two sides have worked in the same direction to build a comprehensive strategic partnership, bridging cultural, historical and political differences through cooperation and dialogue, and jointly promoting the development of globalization. At present, the world is undergoing major changes unseen in a century, and China-EU relations have maintained a good momentum of forward development despite twists and turns. As President of the European Council Charles Michel and European Commission President Ursula von der Leyen pointed out on December 7 when meeting with European Council President Charles Michel and European Commission President Ursula von der Leyen, who are in China for the 24th China-EU Leaders' Meeting, "China and the EU are two major forces promoting multipolarization, two major markets supporting globalization, and two major civilizations advocating diversity. It is incumbent upon both sides to work together to provide more stability for the world and more impetus for development. "Standing at this historical juncture, China and the EU should join hands to learn from and inherit historical experience, respect and support each other, seek common ground while reserving differences, and achieve common development. This is not only directly related to the fundamental and long-term interests of China and the EU, but also carries the common expectations of the international community.
A quick overview of the hot spots
Bulgaria and Romania were partially admitted to the Schengen Area, overcoming Austria's objections
Romania's interior ministry said on Wednesday that the political agreement would allow Romania and Bulgaria to join the Schengen zone only by air and sea, followed by further negotiations on land borders, AfricaNews reported. Austria has been blocking the two countries from joining the Schengen area for fear that it would lead to a large influx of irregular migrants into Europe through the Turkish and Western Balkan routes. Since 2011, the European Commission has considered the two countries ready to join Schengen, but EU countries have blocked the agreement due to concerns about the rule of law and increased immigration.
According to a Bloomberg report on December 28, citing German spokesman Christian Wagner, Germany hopes that the European Union will finalize a major aid package for Ukraine, even without Hungary's support. Hungary vetoed the EU's $55 billion funding package for Ukraine at the European Council summit in mid-December. Hungarian Prime Minister Viktor Orban has long opposed support for Ukraine and is in touch with Russia. Wagner reportedly said at a press conference on December 28 that Germany will provide 8 billion euros worth of military aid to Ukraine in the next fiscal year.
Spain's presidency of the Council of the European Union will end on December 31, according to Eurojust (European Judicial Cooperation Organization). In the areas of justice and the interior, the Spanish presidency has focused its efforts in the areas of freedom, security and justice. Over the past six months, the European Judicial Cooperation Organization has worked closely with the Spanish authorities. Spain has identified four priorities for its tenure, including EU reindustrialization, green transition, social and economic justice, and strengthening European solidarity. In view of the proximity of Europe** and the need to close certain important archives, the challenges faced by the Spanish presidency have been resolved. This includes the completion of legislative work on directives on key topics such as the environment, asset recovery and confiscation, and violations of EU restrictive measures. In addition, the Council agreed on a general approach to the proposal on the transfer of litigation in the hope of paving the way for the successful completion of legislative work on this critical topic.
According to Reuters, the Italian tax claim against Facebook parent company Meta has risen to the European Commission's VAT Commission for assessment, which people say is a case to test how the tech industry is taxed.
The American company Meta, which also owns the Instagram, WhatsApp and Oculus platforms, faces about 8 in Italy after the Milan prosecutor launched an investigation against the company based on an audit by the tax police700 million euros (equivalent to 9..)$5.4 billion). While that's a small amount for a company that generated more than $32 billion in revenue last year, the case could have broader implications as it will determine how Meta delivers its services.
At the regular press conference of the Ministry of Commerce held on December 28, 2023, spokesman He Yadong answered questions from reporters on the fluctuation of the scale of foreign investment. He Yadong said that there are many reasons for the fluctuation of the scale of foreign investment, including economic factors and non-economic factors. The fluctuation of the scale of foreign investment should also be viewed from multiple angles. From a longitudinal point of view, the scale of China's investment is still at a historical high. From 2019 to 2021, China's absorption of foreign capital has set a new historical record for three consecutive years, and the actual use of foreign capital from January to November 2022 has reached 116 trillion yuan, the highest level in the same period in history. Under the condition of the high base of the previous year, it is normal for foreign investment to fluctuate from January to November this year. From a horizontal perspective, global cross-border investment has been sluggish in recent years, and the scale of global cross-border direct investment in 2022 will decline by 12 percent year-on-year4%, which will continue to shrink in 2023. Since the beginning of this year, multinational companies have come to China for inspection and negotiation, showing great interest in investing in China. From January to November this year, 4 new foreign-invested enterprises were established across the country80,000, a year-on-year increase of 362%, which also confirms the momentum of foreign-funded enterprises to invest in China. From a structural point of view, as multinational corporations adjust their investment layout, China's structure for attracting foreign capital continues to be optimized. From January to November this year, the scale of investment in high-tech industries reached 3,866500 million yuan, accounting for 37 percent of the country's foreign investment2%, an increase of 1 from the level of the whole year of 20221 percentage point. On the whole, the fundamentals of China's economic stability and long-term improvement have not changed, and it will unswervingly promote high-level opening up.
According to CCTV News, on December 26, 2023, at the regular policy briefing held by the State Council Information Office, the relevant person in charge of the State Intellectual Property Office introduced that patents have played an active role in supporting the development of green technology and future industries. Data show that in the first 11 months of this year, China's exports of electric vehicles, lithium batteries, solar cells and other products reached 269.3 billion yuan, 419.4 billion yuan and 289 billion yuan respectively, and the share of related products in the global market is also continuing to increase. The State Intellectual Property Office said that there are many patents behind the rapid development of the industry. In terms of electric vehicles, the number of global effective patents of the top 10 key enterprises in China's new energy vehicle sales has exceeded 100,000, and it is showing a rapid growth momentum. As of May this year, the number of patent applications for key technologies for solid-state batteries in the world was 20,798, of which China had 7,640, accounting for 367%。In the past five years, the number of global patent applications for solid-state batteries in China has increased by 20 per year8%, the growth rate ranks first in the world. In terms of solar cells, the current number of global patent applications in China is 12640,000 pieces, ranking first.
Observation of the Think Tank
Observation of the Think Tank
-Recommended articles by foreign language think tanks-
**: Institut Bruegel
Author: Nicolas Véron
Since the outbreak of the Russia-Ukraine conflict, Russia's foreign exchange reserves have been frozen, and how to deal with these frozen funds has become an important consideration for EU policymakers, because most of these frozen assets are stored in the EU. The EU should continue to provide Ukraine with the financial support it needs for its defense and other** spending, but in the current situation, given the EU's commitment to a rules-based international financial order, Russia's reserve assets should not be confiscated to fund support for Ukraine. However, the EU can offset part of the financial burden by misappropriating additional revenues generated by depositories (such as Euroclear) on cash balances in Russia. The EU has "good" reason to believe that these revenues do not belong to Russia.
It is estimated that at least €206 billion of Russian reserve assets are held in the EU, more than three-quarters of the total estimated US$280 billion (€265 billion) by the G7**, which was frozen at the end of February 2022. Of that amount, €180 billion is in Brussels-based Euroclear and possibly billions more at its rival Clearstream in Luxembourg.
In contrast, the amount of Russian assets frozen in the United States has not yet been disclosed and is unlikely to exceed several billion dollars, while the frozen Russian reserves in Australia (including in the G7 statistics) and Canada may be even less. This means that the remaining 40 billion to 50 billion euros may be deposited in EU countries outside Japan, the United Kingdom and Belgium. Other countries, including Switzerland and Singapore, have also frozen Russian assets, but these are not included in the G7 total.
-Chinese Think Tank Article Recommendation-
Review of "World 2023 - Where is the Crisis in Europe?".
**: China Institute of Contemporary International Relations
Author: Zhang Jian (Vice President, China Institute of Contemporary International Relations).
After the Ukraine crisis in 2022, Europe enters 2023 in a complex mindset of worries and hopes, hoping to restore economic growth and defeat Russia and strengthen its geopolitical position. But as we move into 2024, Europe is finding that the future seems even more uncertain.
"Aiding Ukraine to resist Russia" is in a dilemma
In 2022, Europe achieved unprecedented solidarity with nine consecutive rounds of sanctions against Russia. Entering 2023, the EU has launched two more rounds of sanctions against Russia and increased aid to Ukraine, with a total of nearly 90 billion euros. In June 2023, European Commission President Ursula von der Leyen announced that 50 billion euros in grants and loans would be provided to Ukraine from 2024 to the end of 2027, but the situation did not develop as Europe would like.
The lack of a Franco-German axis increases the integration dilemma
As the initiators and promoters of European integration, France and Germany are the core forces of the European Union, but the Franco-German axis has continued to weaken in recent years. In 2023, the economic, social and diplomatic difficulties of France and Germany will intensify, bilateral relations will be cold, and contradictions will increase, resulting in a significant increase in internal turmoil in the EU and the loss of direction in the overall development.
The risk of "de-risking" rises
"De-risking" is a hot word in Europe in 2023, and it is also the main line of the EU economy, ** and even foreign relations. Von der Leyen first proposed the concept in March 2023, and it has since been widely used by the EU and the US to replace the anachronistic "decoupling theory". Fundamentally, although the so-called "de-risking" in Europe negates "decoupling", it is actually a variant of "decoupling theory", which still reflects exclusive thinking based on value bias. The European economy has benefited from economic globalization, but it is also highly dependent on the global market, and artificially and willfully "de-risking" is actually undermining the global efficient division of labor and cooperation and industrial chain system, weakening the spirit of global cooperation and solidarity, and also harming the economic and social development of the EU itself. At present, Europe is not getting better because of "de-risking", but worse. It can be seen that in the "de-risking" strategy, if the risk is assessed based on narrow value bias and so-called institutional competition, it will definitely go in the wrong direction and will only bring greater risks. It should be said that in 2023, Europe has been working hard to build European sovereignty, promote strategic autonomy, and allow itself to "control its own destiny" in the midst of global geopolitical changes.
Disclaimer: Due to the limited time level, we may have omissions and errors, please forgive us for correcting them. The above foreign remarks do not represent the position of the Chamber of Commerce.
* Chinese Chamber of Commerce in the European Union.
* On the Internet.
Text: Lin Lan, Chen Yue, Hong Linsheng.
Editor: Hong Linsheng.
Reviewed by Fang Dongkui.
end
Introduction
Initiated by Bank of China (Europe)**China Three Gorges (Europe)** and COSCO SHIPPING (Europe)**, the EU China Chamber of Commerce is registered in Brussels on August 31, 2018, and currently has more than 80 member units, representing nearly 1,000 Chinese-funded enterprises in Europe, covering major EU member states. Located in Brussels, adjacent to the European Council and the European Commission, the Chamber of Commerce represents the interests of Chinese enterprises and shoulders the common mission of "connecting China and Europe for prosperity".