Dear reader,
How did you decide? Did you listen to Elon Musk’s conversation with Alice Weidel live to see how a US tech entrepreneur makes politics in Germany? Or did you decide against it, for example to avoid driving up the viewing figures for this event even further?
Technically, you didn’t even have to be on X to witness the spectacle of Musk’s election campaign support for the AfD. The media outside of social media (including Table.Briefings) have also reported so extensively in recent days that far more people have heard about it than the eleven million or so average active users in Germany that X has reported to the EU as part of the DSA. Incidentally, that is far fewer users than there are on Instagram or Facebook in Germany.
Political scientists complain that the media are giving even more reach to the statements of the world’s most powerful broadcaster. “As a public, we should be careful not to turn ourselves into his amplifier,” says Felix Kartte, Senior Fellow at the Mercator Foundation. “We have to be careful not to jump over every stick he throws at us and bring his provocations on X, which is actually more of a niche platform, into a broad discourse.”
But there is no obvious way out of the dilemma. Because, of course, what a future close political advisor to Donald Trump says – and does – is relevant. Just one example: The Financial Times reports that Elon Musk is talking to like-minded people about how Keir Starmer could be removed as British Prime Minister before the next general election.
Musk is allowed to think and say what he wants – on X and in any other medium. But he must abide by the law in his actions. And the Europeans must also enforce their laws, preferably in unison.
I wish you a successful day.
Feature
Sea routes, resources, military supremacy: Why Greenland is so important
It is not the first time that US President-elect Donald Trump has irritated the world with his desire to seize Greenland. Yet he can already do whatever he wants there, says security expert Michael Paul from the German Institute for International and Security Affairs. “In last year’s Greenland Arctic strategy, Greenland – and therefore also Denmark – expressed the wish for increased American involvement and investment,” says Paul. This would also ease the burden on their own national budget.
Both Greenland and Denmark have rejected the purchase offer. However, on Thursday, Nuuk expressed its willingness to cooperate with the United States in developing raw materials. The USA also maintains the large Thule Air Base on the island. There is no need to soften the treaties on cooperation, explains Paul, and military threats are “completely inappropriate, with a good ally like Denmark anyway.” However, he argues that Trump’s strategy has always been to make big announcements in order to achieve minimal goals in the end. It is clear that Trump wants more influence in Greenland, he adds.
Denmark wants to avoid a verbal escalation
Many threats have not materialized, a spokesperson for the EU Commission said on Thursday, commenting on Trump’s statements that he would not shy away from using force. The Commission did not want to answer every hypothetical question. In other words, Brussels reacted evasively. Instead, they said they look forward to working with the future US administration on a strong transatlantic agenda. Their priority is to prepare as many avenues of cooperation as possible with a view to common strategic goals.
Cooperation may not be a priority for Trump, who likes to assert his own interests. When the US president-elect threatens Denmark with tariffs, he primarily demonstrates his unawareness: The US can only impose punitive tariffs against the EU as a whole, not against an individual member state. When asked, Trump said he would not rule out using military force to protect interests in Greenland. This also includes Denmark because although Greenland left what was known as the European Economic Community in 1982 following a referendum, it is still considered part of the Danish kingdom.
One spokesperson for the EU Commission stressed that the sovereignty of states must be respected. And yes, should Denmark call on its European partners for help in a hypothetical conflict over Greenland, the obligation to provide assistance under Article 42(7) would apply. But why has Brussels reacted so cautiously to the threats?
According to diplomats in Brussels, Denmark has no interest in a verbal escalation and has therefore requested restraint. Adding fuel to the fire with additional statements now will only make the negotiating position more difficult later. Accordingly, Trump’s threats regarding Greenland were not on the agenda of the EU ambassadors in Brussels on Thursday.
Moscow’s interests in the Arctic
However, Moscow reacted quickly to Trump’s bold plans: “The Arctic is a zone of our national interests, our strategic interests,” said Kremlin spokesman Dmitry Peskov on Thursday. “We are interested in preserving the atmosphere of peace and stability in the Arctic zone.”
In a spectacular submarine operation in the summer of 2007, Russia planted a flag on the seabed of the North Pole at a depth of more than 4,200 meters, underlining its claim to the area. Almost 20 years ago, Russia reactivated old Soviet military bases in the Arctic and is building up new forces. The modernization of the strategic submarines of the Northern Fleet is also underway. In December 2023, President Vladimir Putin visited the large Russian shipyard Sevmash on the White Sea, which is to build three Borey-A class strategic submarines in the coming years. It is the fourth and most modern generation of Russian nuclear submarines.
Russia’s maritime strategy, updated in the summer of 2022, attributes great importance to the Arctic. Russia’s plans are defined in 21 points, from exploiting natural resources and expanding ports and sea routes to research. Moscow’s main focus is to secure its claim to the Arctic region. As Table.Briefings reported, both NATO and the German government see a need to adjust their security policy in the Arctic and are adapting their considerations accordingly. A cooperative approach by neighboring states in the Arctic region no longer seems to be a reality.
Beijing also seeks to exploit raw materials
As if there weren’t enough disputes in the region, China also wants to benefit economically from Greenland. As part of its “Polar Silk Road,” the Arctic supplement to the “Belt and Road” initiative, Beijing wants to expand its influence in Greenland. China is already the island’s second-largest trading partner after Denmark, for example, for fishery products. However, Beijing primarily focuses on strategic resources such as rare earths and uranium. Large-scale projects such as the Kuannersuit uranium mining project or the construction of two airports by the state-owned China Communications Construction Company (CCCC) failed due to Washington’s veto.
China is currently reluctant to invest overseas due to its own economic downturn. Nevertheless, Greenland remains a key regional strategic target, as evidenced by regular meetings between Chinese and Greenlandic politicians. Greenland’s wish for more autonomy and the feeling of being patronized by Copenhagen and Washington could lead to Nuuk becoming more open to Chinese investment. Above all, if the geopolitical situation in the Arctic changes, Russia and China might further expand their partnership there militarily.
Translation missing.
China business: Why silo formation worries the EU Chamber of Commerce
In a new report, the European Chamber of Commerce in China has issued an urgent warning about the dangers of so-called “siloing“. This trend, which can be described as siloing, involves Western companies outsourcing more and more activities to China in parallel structures – even though, according to the Chamber, this does not actually make sense from a market economy perspective.
Many companies are still localizing for commercial reasons, said Chamber President Jens Eskelund on Thursday at the presentation of the Siloing report in Beijing. However, the chamber is increasingly seeing companies “separating their activities due to regulatory requirements or geopolitical concerns“.
Companies want to appear reliable
Around three-quarters of the 113 chamber members surveyed justified their adjustments to products and services in China by saying they were better able to adapt to the wishes of Chinese customers. However, more than a third of the companies stated that they were adapting in order to comply with local regulations. A quarter did so in order to react to political changes.
Geopolitical tensions, trade conflicts and China’s policy of self-sufficiency, coupled with increasing regulatory risks at national and global level, have led to this trend, according to the Chamber.
Some members have made “significant investments” in this process so that they now closely resemble local companies in China. They have localized their supply chains, workforce, sales and procurement functions, and isolated their research and development departments and data and IT systems to adapt to evolving regulatory requirements. The aim is to be seen as a “reliable partner” in the eyes of the Chinese authorities as well as their local partners and customers.
Rising costs and compliance risks
However, this is associated with considerable compromises. Isolation would lead to rising overall costs and global compliance risks. There would also be a need to double operating and production capacities, the chamber summarized. The result would be “inefficiencies, a reduced ability to innovate, and a loss of international competitiveness”.
There is also another problem. Although companies do everything they can to appear Chinese, there is no guarantee that this will pay off. For example, there are many examples of public contracts not being awarded to Western companies. And this despite the fact that they had essentially built up a completely Chinese company.
A threat to global competitiveness
Although siloing can alleviate some problems in business with China, it also leads to negative side effects, according to the Chamber report:
- Higher costs due to the need to duplicate operations.
- Although the siloing of IT infrastructures solves the compliance problems in China, it affects global connectivity and business as a whole.
- This would put foreign companies at a considerable disadvantage compared to their Chinese competitors, as they would only be able to operate with a single system.
- The increasing dominance of Chinese standards poses the risk that foreign companies will lose their global competitiveness if these standards are adopted internationally.
Disadvantages for China’s economy
However, the need to silo means risks not only for EU companies but also for China’s economy, the chamber says. “While some European companies are moving their supply chains to China to increase resilience, a similar number are moving them abroad for the same reasons,” the report said. The outflow of foreign direct investment to other markets – already underway – could increase if companies find the cost of staying too high, it said.
This could lead to significant losses of jobs and tax revenue in China. At the same time, it is conceivable that international markets will increasingly develop instruments to better protect their own companies from Chinese competition on domestic soil.
Trump makes the situation even more complicated
The Chamber fears that with Donald Trump in the White House, uncertainty will continue to grow. “It is truly unique that we find ourselves in a situation where so much is a guessing game,” said Chamber President Eskelund. In view of Donald Trump’s inauguration as POTUS on Jan. 20, it is impossible to form an opinion on what the world will look like in three weeks.
However, the Chamber expects a relatively good year for global trade despite the threat of tariffs. Problems with trade could become more noticeable in 2026 due to a tightening of geopolitical fronts.
News
Ramstein: What the next POTUS means for the format
At the last meeting of the Ukraine Contact Group under the leadership of US Secretary of Defense Lloyd Austin at Ramstein Air Base, the participants announced new aid packages and sent indirect signals to the new US administration, also with a view to the next POTUS. Before the meeting began, NATO Secretary General Mark Rutte emphasized that it was not just about giving Ukraine everything it needed to enter into negotiations from a position of strength. According to Rutte, it was also about burden-sharing. US President-elect Donald Trump has repeatedly emphasized that the European allies must increase their contributions to support Ukraine.
Rutte explicitly praised Berlin’s contributions. “Germany has so far provided almost €30 billion in support in the form of training and equipment for Ukraine,” he said. On Thursday, Federal Minister for Defense Boris Pistorius (SPD) also announced that Germany would support Ukraine in the short term with additional Iris-T air defense missiles, which were originally intended for the Bundeswehr. The SPD politician did not give an exact number.
NSATU in Wiesbaden could become more important
The US announced military aid amounting to USD 500 million (€486 million) as what was probably the last package from the Biden administration. Previously, Ukrainian President Volodymyr Zelenskiy, who had traveled to Germany for the last meeting under Austin’s leadership, had called on the partner countries to support the production of combat drones in his country and asked for more anti-aircraft weapons.
There are fears that Trump will reduce support as POTUS and could try to pressure Ukraine into negotiations. Whether there will be further meetings of the Ukraine Contact Group in Ramstein under him is questionable. The NATO-Ukraine Command NSATU (NATO Security Assistance and Training for Ukraine) in Wiesbaden could then take on a greater role. wp
EU foreign ministers want to ease sanctions against Syria
The EU foreign ministers want to decide on easing sanctions against Syria at the Foreign Affairs Council in three weeks. As Table.Briefings has learned from diplomatic circles, the meeting on Jan. 27 is expected to see the easing of some of the sanctions imposed on the regime of former ruler Bashar al-Assad since 2011. This could include easing restrictions on civilian air traffic.
Syria’s ambassador to the United Nations, Koussay Aldahhak, called for the complete lifting of sanctions against his country on Thursday. French Foreign Minister Jean-Noël Barrot said on Wednesday that sanctions that hinder the delivery of humanitarian aid and make it difficult to rebuild the country could be lifted quickly.
Tajani: ‘The first messages from Damascus are positive’
Italian Foreign Minister Antonio Tajani joined the demands of his counterparts from France and Germany on Thursday. The economic sanctions against Syria should be gradually lifted, he said. “In my opinion, this is an issue that needs to be addressed because there is no longer an Assad, but a new situation,” said Tajani on Thursday evening on the sidelines of a meeting in Rome, which was also attended by US Secretary of State Antony Blinken and EU High Representative for Foreign Affairs Kaja Kallas.
“The first messages from Damascus are positive,” said Tajani. He announced that he would travel to Damascus on Friday, where he intends to meet with Syria’s new rulers, representatives of civil society, and the Christian community.
Last week, Kallas sent Ministers Baerbock and Barrot to Damascus on behalf of the EU – to make it clear that the two largest EU member states are speaking with one voice. The head of the EU delegation for Syria, German diplomat Michael Ohnmacht, was also present at Baerbock and Barrot’s meeting with Ahmed al-Sharaa, the new Syrian ruler, in Damascus last Friday. mrb, asf
Gas transit: Meeting between Fico and Jørgensen does not ease tensions
Slovakia is considering further retaliatory measures against Ukraine, including withholding aid money, if no solution is found to Kyiv’s decision to cut off the transit of Russian gas, Prime Minister Robert Fico said on Thursday after talks with EU Energy Commissioner Dan Jørgensen.
Fico had already threatened to cut electricity supplies to Ukraine if Russia attacked its power grid or to reduce aid for Ukrainian refugees. On Thursday, he said that the government could also stop humanitarian aid or use its right of veto over EU decisions on Ukraine. Slovakia and the EU Commission said after the meeting that they had agreed to set up a working group on the issue.
No evidence of alleged loss of revenue
According to Fico, the transit stop will cost Slovakia one billion euros more per year for gas and €500 million in lost transit fees. According to Reuters, however, it is not clear how he arrived at his estimate. The Slovakian network operator Eustream, which is 51 percent state-owned, reported revenues of €226 million for total gas transit for the financial year ending in July 2023 – although the company transports a small amount of non-Russian gas.
The association Energy Traders Europe had criticized that the Slovakian grid fees were not transparent and did not correspond to the actual costs and the European grid codes.
Slovakia needs 4 to 5 billion cubic meters (bcm) of gas per year to meet its demand and has so far purchased around 3 bcm from Russia via Ukraine. The state gas company SPP is now buying liquefied gas from BP, ExxonMobil, Shell, Eni and RWE. rtr/ber
Regulation: Beijing targets EU instrument
Beijing has declared the European Union’s measures to protect its companies from foreign subsidies a barrier to trade and investment. The Chinese Ministry of Commerce published the results of an investigation into the EU Foreign Subsidies Regulation on Thursday and highlighted the “selective implementation” as the main problem. The investigation began in July 2023.
The ministry proposed bilateral talks on this with the EU, but also said that “other appropriate measures” could be taken – including recommendations for “retaliatory measures.” A spokesman said that requesting the EU to discuss and amend or adjust the FSR was a possibility.
The Ministry of Commerce accuses the EU of initiating FSR investigations, including “surprise inspections,” only into Chinese companies that had participated in public procurement. This means that “Chinese products are being treated more unfavorably in the process of exporting to the EU than products from third countries.”
FSR also applied to other third countries
This has resulted in the abandonment of tendering projects worth around one billion euros, the Chinese Chamber of Commerce to the EU added in a statement, warning: “In addition, Chinese companies are reconsidering their investment strategies in the EU to avoid further scrutiny under the FSR, leading to a suspension, reduction or delay in participation in EU investment projects.”
Jens Eskelund, President of the European Union Chamber of Commerce in China, defended the regulation in a statement as “country-agnostic.” He said the measure was “aimed at counteracting the distortive effects of subsidies to ensure a level playing field for companies in the EU internal market.” The EU Commission has already applied the FSR in cases involving other third countries.
The FSR gives Brussels the authority to probe subsidies. The EU regulatory authorities can impose fines, suspend tenders or stop state takeovers altogether. Based on this law, the EU launched various investigations last year, including against a Chinese train manufacturer that wanted to sell trains in Bulgaria, which the company subsequently withdrew. Last year, the European Commission also searched the offices of Chinese safety equipment supplier Nuctech in Poland and the Netherlands. ari
- EU-Binnenmarkt
- EU-Handelskammer
Armenian government introduces law on EU accession
The government of the Republic of Armenia in the South Caucasus has submitted a draft law on the start of the EU accession process to parliament. According to the Armenpress news agency, Prime Minister Nikol Pashinyan emphasized that the government is committed to the law, but its adoption does not automatically mean that Armenians will also decide to join the EU.
“The decision to join the EU or another supranational organization can only be made in a referendum in accordance with our constitution,” he said. The country could thus face a crucial test.
Relations between Moscow and Yerevan have cooled since the more western-oriented Pashinyan came to power. Russia was long regarded as Armenia’s protective power in the Caucasus – also in the conflict with neighboring Azerbaijan. In the two most recent armed conflicts between Yerevan and Baku over the Nagorno-Karabakh region, Russia remained passive – despite a Russian protection force stationed in the area.
Increasing distance to Moscow
Last fall, the population of Nagorno-Karabakh – more than 100,000 ethnic Armenians – was finally forced to flee the region after fierce attacks by Azerbaijani troops. Russian troops were busy occupying Ukrainian territories at the time. Recently, Yerevan had already distanced itself from the Moscow-dominated military alliance Collective Security Treaty Organization (CSTO), which it had once co-founded. However, Russia still maintains a military base in Armenia.
Armenia is also a member of the Eurasian Economic Union (EAEU), which Russia once wanted to bring Ukraine into. The Ukrainians’ decision to align themselves with the EU instead was one of the triggers for the conflict that led to Russia’s war of aggression against the neighboring country two years ago.
Kremlin spokesman Dmitry Peskov has already stated that Armenia’s accession to the EU would be incompatible with the country’s current membership of the EAEU. dpa
Venezuela: McAllister calls for tougher sanctions
The head of the Committee on Foreign Affairs, David McAllister (CDU), is pushing for the sanctions against the Venezuelan government to be extended. In a letter to Foreign Affairs Commissioner Kaja Kallas, he reminds her that the winner of the presidential election, Edmundo González Urrutia, should actually take office today, Jan. 10.
González Urrutia, who was cheated out of his election victory by the regime, is also in Venezuela on the day that ruler Nicolás Maduro begins a new term in office. McAllister writes: “Venezuela has been in a permanent multidimensional crisis for almost two decades. The origin is the increasingly authoritarian and repressive Chavista regime, which has been led by Maduro since 2013.”
Children as political prisoners
In Kallas’ reply to McAllister, which is available to Table.Briefings, the Foreign Affairs Commissioner writes that she herself “conveyed the EU’s unwavering support for the democratic aspirations of the Venezuelan people” on the fringes of the European Parliament’s awarding of the Sakharov Prize to González Urrutia. Stricter sanctions are not ruled out. “The Council is currently working on the revision of the current regime of restrictive measures against Venezuela”, the letter from Kallas continues.
McAllister had asked what the EU was doing to free the many political prisoners, including children. Kallas replied that the EU supports all international human rights mechanisms, in particular the Office of the United Nations High Commissioner for Human Rights, the UN fact-finding mission, and the International Criminal Court. The EU, for example, is the “largest financial contributor to the Office of the High Commissioner in Caracas”. mgr
- EU Parliament
- Vereinte Nationen
Sustainable Finance: Taxonomy criteria for mining and refining proposed
The EU Platform for Sustainable Finance has published draft proposals to revise and expand part of the sustainable finance taxonomy. Mining and refining are also listed as economic activities that should be considered sustainable under certain conditions.
The proposals were drafted by a technical working group of the platform on behalf of the EU Commission. They contain recommendations for the technical assessment criteria of the delegated act on climate and for the inclusion of further economic criteria in the taxonomy. The committee is asking for feedback on the drafts by Feb. 5.
Proposals for lithium, nickel and copper
Specifically, the platform proposes including the mining and processing of lithium, nickel and copper in the taxonomy. The corresponding criteria should also serve as a template for the inclusion of other raw materials at a later date. According to the draft, mining projects contribute significantly to climate change mitigation if
- the end use of the raw material for specific purposes such as battery production is ensured, and
- the mine has an investment plan and a monitoring and evaluation system for its greenhouse gas emissions.
The working group also proposes criteria for further processing, including threshold values for the intensity of greenhouse gas emissions from electricity and heat consumption.
EU wants to channel investment into mining
The EU Commission has been planning to include the mining and processing of raw materials in the taxonomy for several years. The working group was commissioned in 2022 to prepare criteria for this. Many stakeholders see inclusion in the taxonomy as the only way to secure the supply of critical raw materials and channel more investment into this sector.
In addition to mining and refining, the economic activities to be included in the taxonomy also include research, development and innovation as well as digital solutions and services that contribute to the environmental objectives of the taxonomy (circular economy, biodiversity, protection of water and marine resources, prevention and reduction of pollution). leo
- Sustainable Finance
- Taxonomie
Europe.Table Editorial Team
EUROPE.TABLE EDITORIAL OFFICE
Dear reader,
How did you decide? Did you listen to Elon Musk’s conversation with Alice Weidel live to see how a US tech entrepreneur makes politics in Germany? Or did you decide against it, for example to avoid driving up the viewing figures for this event even further?
Technically, you didn’t even have to be on X to witness the spectacle of Musk’s election campaign support for the AfD. The media outside of social media (including Table.Briefings) have also reported so extensively in recent days that far more people have heard about it than the eleven million or so average active users in Germany that X has reported to the EU as part of the DSA. Incidentally, that is far fewer users than there are on Instagram or Facebook in Germany.
Political scientists complain that the media are giving even more reach to the statements of the world’s most powerful broadcaster. “As a public, we should be careful not to turn ourselves into his amplifier,” says Felix Kartte, Senior Fellow at the Mercator Foundation. “We have to be careful not to jump over every stick he throws at us and bring his provocations on X, which is actually more of a niche platform, into a broad discourse.”
But there is no obvious way out of the dilemma. Because, of course, what a future close political advisor to Donald Trump says – and does – is relevant. Just one example: The Financial Times reports that Elon Musk is talking to like-minded people about how Keir Starmer could be removed as British Prime Minister before the next general election.
Musk is allowed to think and say what he wants – on X and in any other medium. But he must abide by the law in his actions. And the Europeans must also enforce their laws, preferably in unison.
I wish you a successful day.
Feature
Sea routes, resources, military supremacy: Why Greenland is so important
It is not the first time that US President-elect Donald Trump has irritated the world with his desire to seize Greenland. Yet he can already do whatever he wants there, says security expert Michael Paul from the German Institute for International and Security Affairs. “In last year’s Greenland Arctic strategy, Greenland – and therefore also Denmark – expressed the wish for increased American involvement and investment,” says Paul. This would also ease the burden on their own national budget.
Both Greenland and Denmark have rejected the purchase offer. However, on Thursday, Nuuk expressed its willingness to cooperate with the United States in developing raw materials. The USA also maintains the large Thule Air Base on the island. There is no need to soften the treaties on cooperation, explains Paul, and military threats are “completely inappropriate, with a good ally like Denmark anyway.” However, he argues that Trump’s strategy has always been to make big announcements in order to achieve minimal goals in the end. It is clear that Trump wants more influence in Greenland, he adds.
Denmark wants to avoid a verbal escalation
Many threats have not materialized, a spokesperson for the EU Commission said on Thursday, commenting on Trump’s statements that he would not shy away from using force. The Commission did not want to answer every hypothetical question. In other words, Brussels reacted evasively. Instead, they said they look forward to working with the future US administration on a strong transatlantic agenda. Their priority is to prepare as many avenues of cooperation as possible with a view to common strategic goals.
Cooperation may not be a priority for Trump, who likes to assert his own interests. When the US president-elect threatens Denmark with tariffs, he primarily demonstrates his unawareness: The US can only impose punitive tariffs against the EU as a whole, not against an individual member state. When asked, Trump said he would not rule out using military force to protect interests in Greenland. This also includes Denmark because although Greenland left what was known as the European Economic Community in 1982 following a referendum, it is still considered part of the Danish kingdom.
One spokesperson for the EU Commission stressed that the sovereignty of states must be respected. And yes, should Denmark call on its European partners for help in a hypothetical conflict over Greenland, the obligation to provide assistance under Article 42(7) would apply. But why has Brussels reacted so cautiously to the threats?
According to diplomats in Brussels, Denmark has no interest in a verbal escalation and has therefore requested restraint. Adding fuel to the fire with additional statements now will only make the negotiating position more difficult later. Accordingly, Trump’s threats regarding Greenland were not on the agenda of the EU ambassadors in Brussels on Thursday.
Moscow’s interests in the Arctic
However, Moscow reacted quickly to Trump’s bold plans: “The Arctic is a zone of our national interests, our strategic interests,” said Kremlin spokesman Dmitry Peskov on Thursday. “We are interested in preserving the atmosphere of peace and stability in the Arctic zone.”
In a spectacular submarine operation in the summer of 2007, Russia planted a flag on the seabed of the North Pole at a depth of more than 4,200 meters, underlining its claim to the area. Almost 20 years ago, Russia reactivated old Soviet military bases in the Arctic and is building up new forces. The modernization of the strategic submarines of the Northern Fleet is also underway. In December 2023, President Vladimir Putin visited the large Russian shipyard Sevmash on the White Sea, which is to build three Borey-A class strategic submarines in the coming years. It is the fourth and most modern generation of Russian nuclear submarines.
Russia’s maritime strategy, updated in the summer of 2022, attributes great importance to the Arctic. Russia’s plans are defined in 21 points, from exploiting natural resources and expanding ports and sea routes to research. Moscow’s main focus is to secure its claim to the Arctic region. As Table.Briefings reported, both NATO and the German government see a need to adjust their security policy in the Arctic and are adapting their considerations accordingly. A cooperative approach by neighboring states in the Arctic region no longer seems to be a reality.
Beijing also seeks to exploit raw materials
As if there weren’t enough disputes in the region, China also wants to benefit economically from Greenland. As part of its “Polar Silk Road,” the Arctic supplement to the “Belt and Road” initiative, Beijing wants to expand its influence in Greenland. China is already the island’s second-largest trading partner after Denmark, for example, for fishery products. However, Beijing primarily focuses on strategic resources such as rare earths and uranium. Large-scale projects such as the Kuannersuit uranium mining project or the construction of two airports by the state-owned China Communications Construction Company (CCCC) failed due to Washington’s veto.
China is currently reluctant to invest overseas due to its own economic downturn. Nevertheless, Greenland remains a key regional strategic target, as evidenced by regular meetings between Chinese and Greenlandic politicians. Greenland’s wish for more autonomy and the feeling of being patronized by Copenhagen and Washington could lead to Nuuk becoming more open to Chinese investment. Above all, if the geopolitical situation in the Arctic changes, Russia and China might further expand their partnership there militarily.
Translation missing.
China business: Why silo formation worries the EU Chamber of Commerce
In a new report, the European Chamber of Commerce in China has issued an urgent warning about the dangers of so-called “siloing“. This trend, which can be described as siloing, involves Western companies outsourcing more and more activities to China in parallel structures – even though, according to the Chamber, this does not actually make sense from a market economy perspective.
Many companies are still localizing for commercial reasons, said Chamber President Jens Eskelund on Thursday at the presentation of the Siloing report in Beijing. However, the chamber is increasingly seeing companies “separating their activities due to regulatory requirements or geopolitical concerns“.
Companies want to appear reliable
Around three-quarters of the 113 chamber members surveyed justified their adjustments to products and services in China by saying they were better able to adapt to the wishes of Chinese customers. However, more than a third of the companies stated that they were adapting in order to comply with local regulations. A quarter did so in order to react to political changes.
Geopolitical tensions, trade conflicts and China’s policy of self-sufficiency, coupled with increasing regulatory risks at national and global level, have led to this trend, according to the Chamber.
Some members have made “significant investments” in this process so that they now closely resemble local companies in China. They have localized their supply chains, workforce, sales and procurement functions, and isolated their research and development departments and data and IT systems to adapt to evolving regulatory requirements. The aim is to be seen as a “reliable partner” in the eyes of the Chinese authorities as well as their local partners and customers.
Rising costs and compliance risks
However, this is associated with considerable compromises. Isolation would lead to rising overall costs and global compliance risks. There would also be a need to double operating and production capacities, the chamber summarized. The result would be “inefficiencies, a reduced ability to innovate, and a loss of international competitiveness”.
There is also another problem. Although companies do everything they can to appear Chinese, there is no guarantee that this will pay off. For example, there are many examples of public contracts not being awarded to Western companies. And this despite the fact that they had essentially built up a completely Chinese company.
A threat to global competitiveness
Although siloing can alleviate some problems in business with China, it also leads to negative side effects, according to the Chamber report:
- Higher costs due to the need to duplicate operations.
- Although the siloing of IT infrastructures solves the compliance problems in China, it affects global connectivity and business as a whole.
- This would put foreign companies at a considerable disadvantage compared to their Chinese competitors, as they would only be able to operate with a single system.
- The increasing dominance of Chinese standards poses the risk that foreign companies will lose their global competitiveness if these standards are adopted internationally.
Disadvantages for China’s economy
However, the need to silo means risks not only for EU companies but also for China’s economy, the chamber says. “While some European companies are moving their supply chains to China to increase resilience, a similar number are moving them abroad for the same reasons,” the report said. The outflow of foreign direct investment to other markets – already underway – could increase if companies find the cost of staying too high, it said.
This could lead to significant losses of jobs and tax revenue in China. At the same time, it is conceivable that international markets will increasingly develop instruments to better protect their own companies from Chinese competition on domestic soil.
Trump makes the situation even more complicated
The Chamber fears that with Donald Trump in the White House, uncertainty will continue to grow. “It is truly unique that we find ourselves in a situation where so much is a guessing game,” said Chamber President Eskelund. In view of Donald Trump’s inauguration as POTUS on Jan. 20, it is impossible to form an opinion on what the world will look like in three weeks.
However, the Chamber expects a relatively good year for global trade despite the threat of tariffs. Problems with trade could become more noticeable in 2026 due to a tightening of geopolitical fronts.
News
Ramstein: What the next POTUS means for the format
At the last meeting of the Ukraine Contact Group under the leadership of US Secretary of Defense Lloyd Austin at Ramstein Air Base, the participants announced new aid packages and sent indirect signals to the new US administration, also with a view to the next POTUS. Before the meeting began, NATO Secretary General Mark Rutte emphasized that it was not just about giving Ukraine everything it needed to enter into negotiations from a position of strength. According to Rutte, it was also about burden-sharing. US President-elect Donald Trump has repeatedly emphasized that the European allies must increase their contributions to support Ukraine.
Rutte explicitly praised Berlin’s contributions. “Germany has so far provided almost €30 billion in support in the form of training and equipment for Ukraine,” he said. On Thursday, Federal Minister for Defense Boris Pistorius (SPD) also announced that Germany would support Ukraine in the short term with additional Iris-T air defense missiles, which were originally intended for the Bundeswehr. The SPD politician did not give an exact number.
NSATU in Wiesbaden could become more important
The US announced military aid amounting to USD 500 million (€486 million) as what was probably the last package from the Biden administration. Previously, Ukrainian President Volodymyr Zelenskiy, who had traveled to Germany for the last meeting under Austin’s leadership, had called on the partner countries to support the production of combat drones in his country and asked for more anti-aircraft weapons.
There are fears that Trump will reduce support as POTUS and could try to pressure Ukraine into negotiations. Whether there will be further meetings of the Ukraine Contact Group in Ramstein under him is questionable. The NATO-Ukraine Command NSATU (NATO Security Assistance and Training for Ukraine) in Wiesbaden could then take on a greater role. wp
EU foreign ministers want to ease sanctions against Syria
The EU foreign ministers want to decide on easing sanctions against Syria at the Foreign Affairs Council in three weeks. As Table.Briefings has learned from diplomatic circles, the meeting on Jan. 27 is expected to see the easing of some of the sanctions imposed on the regime of former ruler Bashar al-Assad since 2011. This could include easing restrictions on civilian air traffic.
Syria’s ambassador to the United Nations, Koussay Aldahhak, called for the complete lifting of sanctions against his country on Thursday. French Foreign Minister Jean-Noël Barrot said on Wednesday that sanctions that hinder the delivery of humanitarian aid and make it difficult to rebuild the country could be lifted quickly.
Tajani: ‘The first messages from Damascus are positive’
Italian Foreign Minister Antonio Tajani joined the demands of his counterparts from France and Germany on Thursday. The economic sanctions against Syria should be gradually lifted, he said. “In my opinion, this is an issue that needs to be addressed because there is no longer an Assad, but a new situation,” said Tajani on Thursday evening on the sidelines of a meeting in Rome, which was also attended by US Secretary of State Antony Blinken and EU High Representative for Foreign Affairs Kaja Kallas.
“The first messages from Damascus are positive,” said Tajani. He announced that he would travel to Damascus on Friday, where he intends to meet with Syria’s new rulers, representatives of civil society, and the Christian community.
Last week, Kallas sent Ministers Baerbock and Barrot to Damascus on behalf of the EU – to make it clear that the two largest EU member states are speaking with one voice. The head of the EU delegation for Syria, German diplomat Michael Ohnmacht, was also present at Baerbock and Barrot’s meeting with Ahmed al-Sharaa, the new Syrian ruler, in Damascus last Friday. mrb, asf
Gas transit: Meeting between Fico and Jørgensen does not ease tensions
Slovakia is considering further retaliatory measures against Ukraine, including withholding aid money, if no solution is found to Kyiv’s decision to cut off the transit of Russian gas, Prime Minister Robert Fico said on Thursday after talks with EU Energy Commissioner Dan Jørgensen.
Fico had already threatened to cut electricity supplies to Ukraine if Russia attacked its power grid or to reduce aid for Ukrainian refugees. On Thursday, he said that the government could also stop humanitarian aid or use its right of veto over EU decisions on Ukraine. Slovakia and the EU Commission said after the meeting that they had agreed to set up a working group on the issue.
No evidence of alleged loss of revenue
According to Fico, the transit stop will cost Slovakia one billion euros more per year for gas and €500 million in lost transit fees. According to Reuters, however, it is not clear how he arrived at his estimate. The Slovakian network operator Eustream, which is 51 percent state-owned, reported revenues of €226 million for total gas transit for the financial year ending in July 2023 – although the company transports a small amount of non-Russian gas.
The association Energy Traders Europe had criticized that the Slovakian grid fees were not transparent and did not correspond to the actual costs and the European grid codes.
Slovakia needs 4 to 5 billion cubic meters (bcm) of gas per year to meet its demand and has so far purchased around 3 bcm from Russia via Ukraine. The state gas company SPP is now buying liquefied gas from BP, ExxonMobil, Shell, Eni and RWE. rtr/ber
Regulation: Beijing targets EU instrument
Beijing has declared the European Union’s measures to protect its companies from foreign subsidies a barrier to trade and investment. The Chinese Ministry of Commerce published the results of an investigation into the EU Foreign Subsidies Regulation on Thursday and highlighted the “selective implementation” as the main problem. The investigation began in July 2023.
The ministry proposed bilateral talks on this with the EU, but also said that “other appropriate measures” could be taken – including recommendations for “retaliatory measures.” A spokesman said that requesting the EU to discuss and amend or adjust the FSR was a possibility.
The Ministry of Commerce accuses the EU of initiating FSR investigations, including “surprise inspections,” only into Chinese companies that had participated in public procurement. This means that “Chinese products are being treated more unfavorably in the process of exporting to the EU than products from third countries.”
FSR also applied to other third countries
This has resulted in the abandonment of tendering projects worth around one billion euros, the Chinese Chamber of Commerce to the EU added in a statement, warning: “In addition, Chinese companies are reconsidering their investment strategies in the EU to avoid further scrutiny under the FSR, leading to a suspension, reduction or delay in participation in EU investment projects.”
Jens Eskelund, President of the European Union Chamber of Commerce in China, defended the regulation in a statement as “country-agnostic.” He said the measure was “aimed at counteracting the distortive effects of subsidies to ensure a level playing field for companies in the EU internal market.” The EU Commission has already applied the FSR in cases involving other third countries.
The FSR gives Brussels the authority to probe subsidies. The EU regulatory authorities can impose fines, suspend tenders or stop state takeovers altogether. Based on this law, the EU launched various investigations last year, including against a Chinese train manufacturer that wanted to sell trains in Bulgaria, which the company subsequently withdrew. Last year, the European Commission also searched the offices of Chinese safety equipment supplier Nuctech in Poland and the Netherlands. ari
- EU-Binnenmarkt
- EU-Handelskammer
Armenian government introduces law on EU accession
The government of the Republic of Armenia in the South Caucasus has submitted a draft law on the start of the EU accession process to parliament. According to the Armenpress news agency, Prime Minister Nikol Pashinyan emphasized that the government is committed to the law, but its adoption does not automatically mean that Armenians will also decide to join the EU.
“The decision to join the EU or another supranational organization can only be made in a referendum in accordance with our constitution,” he said. The country could thus face a crucial test.
Relations between Moscow and Yerevan have cooled since the more western-oriented Pashinyan came to power. Russia was long regarded as Armenia’s protective power in the Caucasus – also in the conflict with neighboring Azerbaijan. In the two most recent armed conflicts between Yerevan and Baku over the Nagorno-Karabakh region, Russia remained passive – despite a Russian protection force stationed in the area.
Increasing distance to Moscow
Last fall, the population of Nagorno-Karabakh – more than 100,000 ethnic Armenians – was finally forced to flee the region after fierce attacks by Azerbaijani troops. Russian troops were busy occupying Ukrainian territories at the time. Recently, Yerevan had already distanced itself from the Moscow-dominated military alliance Collective Security Treaty Organization (CSTO), which it had once co-founded. However, Russia still maintains a military base in Armenia.
Armenia is also a member of the Eurasian Economic Union (EAEU), which Russia once wanted to bring Ukraine into. The Ukrainians’ decision to align themselves with the EU instead was one of the triggers for the conflict that led to Russia’s war of aggression against the neighboring country two years ago.
Kremlin spokesman Dmitry Peskov has already stated that Armenia’s accession to the EU would be incompatible with the country’s current membership of the EAEU. dpa
Venezuela: McAllister calls for tougher sanctions
The head of the Committee on Foreign Affairs, David McAllister (CDU), is pushing for the sanctions against the Venezuelan government to be extended. In a letter to Foreign Affairs Commissioner Kaja Kallas, he reminds her that the winner of the presidential election, Edmundo González Urrutia, should actually take office today, Jan. 10.
González Urrutia, who was cheated out of his election victory by the regime, is also in Venezuela on the day that ruler Nicolás Maduro begins a new term in office. McAllister writes: “Venezuela has been in a permanent multidimensional crisis for almost two decades. The origin is the increasingly authoritarian and repressive Chavista regime, which has been led by Maduro since 2013.”
Children as political prisoners
In Kallas’ reply to McAllister, which is available to Table.Briefings, the Foreign Affairs Commissioner writes that she herself “conveyed the EU’s unwavering support for the democratic aspirations of the Venezuelan people” on the fringes of the European Parliament’s awarding of the Sakharov Prize to González Urrutia. Stricter sanctions are not ruled out. “The Council is currently working on the revision of the current regime of restrictive measures against Venezuela”, the letter from Kallas continues.
McAllister had asked what the EU was doing to free the many political prisoners, including children. Kallas replied that the EU supports all international human rights mechanisms, in particular the Office of the United Nations High Commissioner for Human Rights, the UN fact-finding mission, and the International Criminal Court. The EU, for example, is the “largest financial contributor to the Office of the High Commissioner in Caracas”. mgr
- EU Parliament
- Vereinte Nationen
Sustainable Finance: Taxonomy criteria for mining and refining proposed
The EU Platform for Sustainable Finance has published draft proposals to revise and expand part of the sustainable finance taxonomy. Mining and refining are also listed as economic activities that should be considered sustainable under certain conditions.
The proposals were drafted by a technical working group of the platform on behalf of the EU Commission. They contain recommendations for the technical assessment criteria of the delegated act on climate and for the inclusion of further economic criteria in the taxonomy. The committee is asking for feedback on the drafts by Feb. 5.
Proposals for lithium, nickel and copper
Specifically, the platform proposes including the mining and processing of lithium, nickel and copper in the taxonomy. The corresponding criteria should also serve as a template for the inclusion of other raw materials at a later date. According to the draft, mining projects contribute significantly to climate change mitigation if
- the end use of the raw material for specific purposes such as battery production is ensured, and
- the mine has an investment plan and a monitoring and evaluation system for its greenhouse gas emissions.
The working group also proposes criteria for further processing, including threshold values for the intensity of greenhouse gas emissions from electricity and heat consumption.
EU wants to channel investment into mining
The EU Commission has been planning to include the mining and processing of raw materials in the taxonomy for several years. The working group was commissioned in 2022 to prepare criteria for this. Many stakeholders see inclusion in the taxonomy as the only way to secure the supply of critical raw materials and channel more investment into this sector.
In addition to mining and refining, the economic activities to be included in the taxonomy also include research, development and innovation as well as digital solutions and services that contribute to the environmental objectives of the taxonomy (circular economy, biodiversity, protection of water and marine resources, prevention and reduction of pollution). leo
- Sustainable Finance
- Taxonomie
Europe.Table Editorial Team
EUROPE.TABLE EDITORIAL OFFICE
