Tag

Sanctions

Feature

Brussels wants to protect itself against economic blackmail

Europe wants to defend itself against economic coercion by other countries. The EU Commission plans to present a new "anti-coercion instrument" by the end of the year. The discussion about the right instruments is starting now. Brussels' intention behind the mechanism: It is about deterrence – not least in the direction of China. What options does the EU Commission have at its disposal?

By Amelie Richter

Opinion

China's economic self-harm

Beijing is threatening to miss its targets in the current five-year plan if it continues to take a hard line against the West – not only against the US but also against other countries. The example of H M shows how interdependent China is on the West, especially when it comes to domestic jobs.

By Redaktion Table

Feature

Anta – the patriotic sports outfitter

The world's largest sportswear manufacturers Nike and Adidas are plagued by boycott concerns in their China business. Their Chinese competitor Anta Sports, meanwhile, is actively sourcing cotton from Xinjiang. A strategy that could become a problem internationally for the main supplier of the 2022 Winter Games in Beijing.

By Redaktion Table

Feature

Huawei looking for a way out of US trap

Huawei is increasingly finding itself in a predicament. Chinese suppliers are supposed to fill the gap left by the US supply ban on microchips. Until then, the hoarded semiconductor elements will have to do. And if not? Then the survival of the company is threatened, says the acting CEO.

By

Feature

"China wants diplomatic obedience"

Parag Khanna was a foreign policy advisor in Barack Obama's first presidential campaign. The political scientist is the founder of the strategy consulting firm FutureMap. In an interview with China.Table, he says Europe's sanctions against China are ineffective and merely a self-satisfaction of the West. To influence the situation in China in the long term, the West must remain present.

By Michael Radunski

Feature

Mechanical engineers complain about quarantine hotels without windows

How reasonable are China's COVID-related entry restrictions? The industry association VDMA fears that the quarantine and the need for special permits will remain in place for a long time. The association suspects Beijing wants to give Chinese competitors an advantage. But there are initial indications that entry conditions will be eased. And it is usually possible to negotiate certain quarantine details in China even now.

By Redaktion Table

Feature

EU-China relations: at rock bottom

Relations between China and the EU have never been worse. For the first time in over 30 years, the two sides slapped sanctions on each other last week. Nevertheless, there is little sign of a continuing deep conflict affecting economic relations. Experts speak of a low point but not a caesura.

By Felix Lee

Feature

Tit for tat or the whole nine yards?

The diplomatic exchange of blows with China has left a great deal of uncertainty in its wake. What do the sanctions mean for the individuals named, the employees, and members of the institutions concerned – and for their families? Beijing, meanwhile, is extending the ban to individuals in the US and Canada.

By

Gabriel Felbermayr zur Abkopplung Chinas
Opinion

An EU Supply Chain Act hits the wrong people

At the EU level, discussions are underway on a supply chain law that could surpass in severity the one planned by the grand coalition in Germany. There is goodwill behind such legislation, but the possible negative consequences for poorer countries are being overlooked. It would make much more sense to directly sanction companies with inadequate social and environmental standards through an EU negative list.

By Redaktion Table

Sanctions from and against China determine the political and economic everyday life between the People's Republic, Europe and the USA. The Table.Media editorial team provides all relevant news on this topic.  

What are the sanctions against China?    

The dispute over sanctions against China dates back to 2018. At that time, Donald Trump, the former president of the United States, imposed punitive tariffs on imports from the People's Republic. This affected goods worth $50 billion. But the trade dispute between Beijing and Washington escalated. Just one year later, Donald Trump had imposed punitive tariffs on goods worth 500 billion dollars. The total import volume. Because China only imported goods worth around 125 billion dollars, the People's Republic was unable to respond adequately.       The background to the dispute was Trump's accusations. He accused China of unfair trade practices. The punitive tariffs were intended to reduce the enormous trade deficit. But there is also a geopolitical strategy behind this. The People's Republic wants to become an economic and political world power. The USA sees the world's second-largest economy as an adversary. The EU Commission also called China a "systemic rival" in March 2019. The country's aggressive economic diplomacy in particular has led to this assessment.      

China: why did the trade dispute escalate?   

The escalation of the trade dispute between the USA and China occurred in 2019, because on December 1, 2018, Meng Wanzhou was arrested in Canada. She is the daughter of Ren Zhengfei, the founder of Huawei, and chief financial officer in the telecommunications group. She is accused of circumventing U.S. sanctions against Iran. Huawei is also alleged to be using its 5G technology for espionage.       Donald Trump, the U.S. president at the time, declared a National Telecommunications Emergency on May 15, 2019. This law allows the American government to ban business with companies from "adversarial" countries. In this case, China. The point is to avoid "unacceptable risks" and guarantee the "safety of Americans," as Trump put it.      

How did Germany react to the trade dispute between the U.S. and China?    

Germany also responded to the U.S.-China trade dispute. In particular, to the accusations that Huawei was using its 5G technology for espionage. Thus, the German government passed the "Second Act to Increase the Security of Information Technology Systems." Behind the unwieldy name are additional hurdles for companies that want to participate in the 5G expansion in Germany.       In principle, Huawei was not excluded from the expansion of 5G technology in Germany, but this made it considerably more difficult for the Chinese company to gain market access in Germany. In Europe, Huawei supplies Deutsche Telekom, Vodafone and Telefónica with antennas for WLAN broadband networks. Huawei has also modernized Deutsche Bahn's GSM-R mobile network.      

What are the differences between Germany and China?    

But even beyond the problems with Huawei and the trade dispute between the U.S. and China, there are massive political and economic differences between Europe and Germany on the one hand and China on the other. Human rights violations in China dominate reporting in this country. Above all, the persecution of Uyghur minorities in Xinjiang, their forced labor (also for suppliers of German companies), the suppression of the democracy movement in Hongkong, the censorship of the media and the military threatening gestures toward Taiwan are a constant point of contention.      In addition, there is an unequal trade relationship. While Chinese companies benefit from the open market in Europe, European companies in China have to cope with massive restrictions and requirements. A compulsion to transfer technology, various investment obstacles and restricted market access are among the greatest difficulties.    

What is the relationship between Germany and China?    

Despite these enormous political disagreements, trade relations between Europe and the People's Republic are very good. China is the EU's most important trading partner, if we consider only trade in goods. Excluding services, the trade volume between China and Europe amounted to around 586 billion euros in 2020. Of this, 202.5 billion euros were accounted for by exports to China and 383.5 billion euros by imports from the People's Republic.       The economically most important trading partner for China within the European Union is Germany by a wide margin. The trade volume between Germany and China amounted to around 212.1 billion euros in 2020. This is more than one third of the European volume. Of this, 116.3 billion euros was accounted for by imports from China and 95.9 billion euros by exports to China.       

What are the EU sanctions against China?   

In March 2021, the European Union adopted sanctions against China. The foreign ministers of the 27 member states want to take action against human rights violations in the People's Republic. With the measures, the EU is taking action against four Chinese who are allegedly largely responsible for the oppression of the Uyghurs, a Muslim minority in the Xinjiang region.       The four individuals include Chen Mingguo, the director of the Xinjiang Public Security Bureau, in addition to three representatives of the Xiangjing Party Committee. The institution has been fully placed on the EU sanctions list. They are banned from entering the EU. In addition, all assets belonging to them or legal entities related to them are frozen. They are also no longer allowed to be provided with resources.       

What are China's sanctions against the EU?    

In response to the EU sanctions against China, the Communist Party reacted immediately. It too imposed sanctions on four institutions and a total of ten individuals. In the future, they will not be allowed to enter China or do business with companies from the country. The individuals include MEPs Reinhard Bütikofer (Greens) and Michael Gahler (CDU). Also on the list are Uighur researcher Adrian Zenz, as well as the EU's Political and Security Committee and the German Mercator Institute for China Studies.      The government of the People's Republic showed itself extremely indignant because of the EU sanctions against China. The Foreign Ministry in Beijing announced that the sanctions were based on "nothing but lies and disinformation. If they were not withdrawn, Beijing would "resolutely show further reaction."      

What is China's Anti-Sanctions Law about?   

In June 2021, China passed the sanctions defense law, the Anti-Foreign Sanctions Law. China's Anti-Sanctions Law is a legal framework to respond to U.S. or EU sanctions. Responses can affect both individuals and companies doing business in China. The Anti-Sanctions Law is considered a response to the ever-escalating trade dispute with the U.S. and EU sanctions over human rights violations.      China's Anti-Sanctions Law states when Chinese authorities will intervene and in what manner should sanctions be imposed against the People's Republic. The Anti-Sanctions Law supplements the already existing sanctions measures against the EU and the U.S. and lists additional punitive measures.      

What does China's anti-sanctions law say?  

China's Anti-Sanctions Law holds some interesting and critical passages for foreign companies. Of key importance is article three. It states that individuals and organizations involved in "discriminatory measures against Chinese citizens" or "interference in China's internal affairs" can be punished. They will be blacklisted.       Further, Article Five of the Anti-Sanctions Law states that this also applies to spouses and immediate family members of the individuals. Anyone on the blacklist can be expelled from the country. The issuance of a visa can also become problematic. Article twelve is also critical. It states that Chinese citizens and organizations have the right to sue people and organizations for damages if they are on the blacklist.    

Which individuals has China already punished?    

China's anti-sanctions law is just one of many measures the People's Republic has taken in response to the ongoing trade dispute with the United States since 2018 and EU sanctions against China for human rights abuses. Among the individuals against whom China has already adopted sanctions are U.S. politicians Marco Rubio, Ted Cruz, Josh Hawley and Tom Cotton.      In addition to the aforementioned Reinhard Bütikofer (Greens) and Michael Gahler, Canadian politician Michael Chong and members of the European Parliament's Human Rights Committee are also affected. European academics and NGOs such as Human Rights Watch, Merics, Freedom House and the National Endowment for Democracy are also affected.      

Against which companies has China decided to impose sanctions?   

As far as companies are concerned, the Chinese government has so far been very reluctant to impose sanctions. So far, the Chinese Communist Party has only punished defense companies that have supplied Taiwan. These include Lockheed Martin, Boeing Defense and Raytheon.      China's anti-sanctions law on the one hand, and EU and U.S. sanctions on the other, will accompany the economic and political relations of the great powers for a long time to come. The Table.Media editorial team provides all relevant news on this topic.