Omikron in Hong Kong + Stellantis + EU Supply Chain Act • China.Table

Rising infections thwart Hong Kong’s reopening
Stellantis wants to gain a foothold in the People’s Republic
EU supply chain law without import ban on forced labor products
Germany increased imports from China
Automotive industry calls for energy and raw material partnerships
Intellectual property of ASML infringed
Australia and Lithuania team up against economic coercion
Olympic ticker: curious stories surrounding China’s athletes
Profile: ‘lucky coincidence’ European Shada Islam – pioneer of Eurasian mediation

Dear reader,

While the Omicron wave is already in full motion in the rest of the world, there have only been few new infections in Hong Kong. There was even hope that the border to mainland China would soon be reopened and that quarantine regulations in the special administrative region would be eased. Now, however, infections are rising dramatically there as well, as our authors report from Hong Kong. Authorities can no longer keep up with tracing infections. “Zero covid” seems to have failed – making the highly anticipated border opening, which is vital for many business people, more and more unlikely.

The Stellantis Group unites world-renowned car brands such as Jeep, Opel, Peugeot, and Citroën. But China, of all places, the world’s largest car market, is still uncharted territory for the auto giant. None of the group’s brands had a significant market share before the merger, as Christian Domke-Seidel explains. That’s also because the company so far has lacked the necessary funds to establish a larger market presence. But it seems as if Stellantis will now use the billion-dollar momentum of the past fiscal year to become more present in China.

In our third analysis, we take a look at Brussels’ evergreen: the EU supply chain law. After several delays, its official presentation is scheduled for the end of the month. Charlotte Wirth has gathered all available facts. One important aspect is already apparent: the EU supply chain law will not include a ban on imports of products made by forced labor.

We wish you an exciting read!

Your
Amelie Richter

Feature

Omicron pushes Hong Kong’s zero-covid strategy to the limit

Infections are suddenly rising exponentially in Hong Kong, despite a zero-covid strategy. Why have mainland cities managed to keep Omicron numbers low so far, while Hong Kong has not?

At the end of December, Hong Kong was on the verge of finally reopening its border to mainland China after a year and a half. The plan was to gradually restore travel without a lengthy hotel quarantine. A step that was also eagerly awaited by numerous foreign companies in Hong Kong that wanted to inspect their factories in China, for example.

But Omicron put a wrench in the Chinese Special Administrative Region’s reopening plans. It all began with a flight attendant of the Hong Kong airline Cathay Pacific, who had not adhered to isolation regulations after her return at the end of December. At first, it looked like Hong Kong would be able to control the outbreak, as it had so many times before. But since this week, at the latest, it has become clear that the zero-covid strategy is about to collapse.

Carrie Lam wants to maintain ‘zero covid’

With more than 600 cases each on Monday and Tuesday, the number of new Covid infections in the financial metropolis has reached an all-time high. At the peak of the city’s previous four Covid waves, a daily count of more than 150 infections was never exceeded. Experts now believe that Hong Kong’s infection numbers could even reach four digits in the coming days.

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