- China’s companies cautiously optimistic
- Software gains importance in car manufacturing
- WTO, IMF and World Bank caught between China and USA
- Minor GDP increase
- Merkel and Li discuss economy and climate
- Alibaba Cloud works on own processor
- Hong Kong to ease entry to mainland
- Goldman Sachs takes control over securities business
- Tools: strategies against labor shortage
The problems of German companies operating in China are frequently covered. But what about the other way around? How do Chinese companies evaluate conditions in Europe? Amelie Richter took a close look at the report presented on Monday by the China Chamber of Commerce to the EU – with quite remarkable results: Above all, “misinformation and overregulation” are major concerns among corporations. The issue of 5G is also the cause of lasting resentment. But there are also fields in which China’s corporations see great opportunities and want to increase their investments.
Christian Domke Seidel gets to the bottom of the problems German carmakers are facing in China. The most important sales market is no longer about horsepower, turbochargers, or direct injection. In the future, programmers will be more important than engine developers – and that is exactly the problem for Germany’s manufacturers. So far, only BMW has started to react to this trend.
The accusations against Kristalina Georgieva were serious: During her time at the World Bank, the Bulgarian allegedly manipulated an important ranking in China’s favor. While these accusations lacked proof in the end, her case represents a much more pressing development, analyses Frank Sieren. He explains how international institutions such as the World Bank, the IMF, and the WTO are increasingly becoming mere pawns in the power play between China and the US. According to Sieren, the Americans were primarily trying to ensure their own power in Georgieva’s case. But China, too, has long been chipping away at the foundations of the international order.
I hope our latest issue provides new insights!
Michael Radunski
Feature
Chinese companies in the EU remain optimistic – cautiously
Chinese companies operating in Europe are generally optimistic about their business activities – but newly planned regulations from Brussels and increasingly difficult political waters are clouding their expectations. This is the result of a report by the China Chamber of Commerce to the European Union (CCCEU), which was jointly presented in Brussels on Monday with consulting firm Roland Berger. Especially in the field of 5G expansion, companies from the People’s Republic feel patronized. The chamber report sees great potential for cooperation between China and the EU for green and digital issues. Both the presentation and the paper are repeatedly stressing one thing: “Mutual trust” must be built.
The CCCEU report urged Brussels to create an “open, fair and non-discriminatory market for China’s telecommunications companies”. The exclusion of providers such as Huawei and ZTE happened primarily out of political reasons, criticized Chamber President Xu Haifeng. The fact that telecommunications giants from the People’s Republic are not allowed to participate in the 5G expansion in several EU countries is not based on technical problems. “But because they are Chinese companies,” Xu criticized. The report calls for “clear regulations, standards and implementation guidelines for cybersecurity.” “We want to work with Europeans to create cybersecurity standards and procedures,” the chamber president stressed.
Chinese companies: disinformation clouds public opinion
This should also be supported by a deepening of trust on both sides. This is the only way to solve these challenges, Xu stressed. Brussels and Beijing are looking back on difficult months, both in trade policy and diplomacy. Mutual sanctions and the shelving of the CAI investment agreement were cited as the main issues clouding the mood on EU-China trade, according to the CCCEU report. The fact that Brussels once again tightened the rules for foreign direct investment in October 2020 also did not go down well with Chinese companies, according to the survey.
Continue reading now
… and get free access to this Professional Briefing for a month.
Are you already a guest at the China.Table? Log in now