Spain's PM visits China to boost ties with Trump's top tariff target
Mr Sanchez met with Chinese President Xi Jinping and was expected to meet as well as business leaders from several Chinese companies, many of which produce electric batteries or renewable energy technologies.
The visit comes at a complex moment for Europe and China.
The tariffs announced last week — and then paused — by US president Donald Trump could mean that the European Union pursues more trade with China, the world's third-largest consumer market after the United States and the EU.
There is also growing concern in the EU about China flooding the bloc with discounted goods as a result of US tariffs, which would hurt European producers.
Mr Sanchez's government has said that EU-member Spain wants to expand its economic ties with China.
'A trade war favors no one. We all will lose,' Mr Sanchez said after meeting with Vietnamese leaders in Hanoi on Thursday, where he signed commercial agreements ahead of his visit to Beijing.
Spain's government spokeswoman Pilar Alegria said earlier this week that Mr Sanchez's trip 'has special importance' and is an opportunity to 'diversify markets' — Spain could see as much as 80% of its exports to the US impacted by Mr Trump's tariffs.
US treasury secretary Scott Bessent called out Spain for its move toward China, saying on Tuesday that Spain—or any country that tries to get closer to China—would be 'cutting their own throat' because Chinese manufacturers will be looking to dump goods that they cannot sell in the US.
'Expanding the trade relations that we have with other countries, including a partner as important as China, does not go against anyone,' Spain's agriculture minister, Luis Planas, who accompanied Mr Sanchez, said in Vietnam on Wednesday.
'Everyone has to defend their own interests,' Mr Planas said.
Spain — the eurozone's fourth-largest economy and a leader in growth — has in recent years been less adversarial toward China than other EU countries.
After initially supporting EU tariffs placed last year on Chinese-made electric vehicles, which European leaders have said enjoy unfair advantages compared to European car makers, Spain abstained from voting on the customs duty.
Mr Planas insisted that Spain's approach to China 'contributes to the collective effort made by certain countries in the European Union to get out of this situation'.
'Spain's position has changed to be more pro-China … than the average European country,' said Alicia García-Herrero, an economist for Asia Pacific at the French investment bank Natixis and an expert on Europe's relations with China.
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American Military News
12 minutes ago
- American Military News
Planned Serbia-China Military Exercise Sparks EU Backlash
This article was originally published by Radio Free Europe/Radio Liberty and is reprinted with permission. BELGRADE — Serbia will conduct military training exercises with China this month, becoming the first-ever EU candidate to do so as the two countries take a new step toward deepening military cooperation. China's Defense Ministry said the 'Peacekeeper 2025' training will be comprised of special units from the Chinese and Serbian armies and held in Hebei Province, northern China, in the second half of July. The Balkans region has become strategically important for China, which has invested in massive infrastructure projects there. In particular, it has signed a free-trade agreement with Serbia, while Belgrade has purchased weapons from Beijing, becoming the first European country to acquire a Chinese air defense system. Serbia's friendly policies toward Beijing — as well as Moscow — have set off alarm bells in Brussels, which has issued multiple warnings to Belgrade, which aims to join the bloc. That tone was evident in the EU's assessment of the planned military training with China, with Brussels saying Serbia should refrain from 'actions and statements that contradict the EU's foreign policy positions.' In response to questions by RFE/RL, an EU spokesperson said that the bloc wants to know it can count on Serbia as a reliable European partner committed to common principles, values, and security. 'We need Serbia to assure us of its strategic orientation,' the spokesperson added. As a candidate country, Serbia is obliged to align its foreign policy with that of the EU, which Brussels has repeatedly brought to Belgrade's attention. Serbia maintains military neutrality and is a member of NATO's 'Partnership for Peace' program, with EU accession as its strategic goal. Belgrade's Balancing Act However, Belgrade continues to balance its foreign policy between the West, China, and Russia, which is currently under Western sanctions due to its invasion of Ukraine. Security analyst Nikola Lunic warned that these joint drills 'undermine Serbia's proclaimed EU orientation.' Lunic told RFE/RL that 'interoperability between Serbian and Chinese units sends a clear message to the West.' Last July, Chinese forces held maneuvers with the Belarusian Army directly on NATO's border during a summit of the military alliance's leaders in Washington where there was sharp criticism of Beijing for its support of Russia. While the stated goal by China's Defense Ministry is to 'improve combat capabilities and deepen cooperation,' neither Serbia's Defense Ministry nor the Chinese Embassy in Belgrade disclosed details on participants or the numbers expected to be involved in Peacekeeper 2025. There is no clarity either on whether future joint training will be hosted in Serbia, a common practice in such collaborations. Lunic argues the drills fit the profile of a full military exercise, not simply training, due to their scope and branding. NATO did not respond to a request by RFE/RL for comment on the drills. Chinese Weapons In Serbia's Arsenal Serbia's military cooperation with China is most visible in its recent acquisitions. The Serbian Army procured six CH-92A drones in 2020 and unveiled the CH-95 at an exhibition in 2023, but official numbers remain undisclosed. In 2022, Serbia received the FK-3 air defense system, making it the first European operator of this advanced Chinese missile tech. Late in 2024, Belgrade confirmed that Serbian personnel had received training in China on the FK-3 system, capable of targeting a range of aerial threats. Washington and Brussels have repeatedly expressed concern over Serbia's procurement of Russian and Chinese arms, especially after Russia's full-scale invasion of Ukraine in February 2022. In the wake of the invasion, Serbia imposed a moratorium on joint military exercises with foreign partners, exempting only the 'Platinum Wolf' international exercise — historically held in Serbia with the participation of several NATO members, including the United States. Lunic argues this selective application of the moratorium undermines the credibility of Serbia's proclaimed neutrality. Security Ties Before Military Drills This is not the first example of security cooperation between Belgrade and Beijing. Joint police exercises and patrols have taken place since 2019, demonstrating a broader trend of intensified cooperation. Vuk Vuksanovic of the Belgrade Centre for Security Policy points to the Global Security Initiative, highlighting increased military and police education exchanges and the rapid adoption of Chinese technology, surveillance, and police equipment by Serbia. From Belgrade's perspective, this deepening cooperation is consistent with its 'multi-vector' foreign policy, using partnerships with diverse global actors, including NATO, Russia, the EU, and China, to maximize its leverage and independence on the world stage. China's Broader Goals And Growing Trade Vuksanovic said that, for China, military collaborations such as Peacekeeper 2025 serve two key interests: gaining international operations experience and boosting its profile as a major power, especially given resistance from EU states against deepening partnerships with the Chinese military. After a humanitarian-focused joint drill with Germany in 2019, and anti-terrorism exercises with Belarus in 2024, the Serbia exercise represents a new chapter in Beijing's military diplomacy with Europe. Economically, China's influence in Serbia is growing. Xi Jinping's May 2024 visit to Belgrade resulted in a declaration to deepen the strategic partnership and 'build a Serbia-China community with a shared future in a new era.' China is now Serbia's top trade partner for imports, with €5.13 billion euros ($5.95 billion) recorded in 2024, and remains a vital source of investment, loans, and diplomatic support in international institutions, especially regarding Kosovo's independence.
Business Wire
12 minutes ago
- Business Wire
CDB Aviation and Loong Air Execute Lease Agreements for Six A321neo Aircraft
HANGZHOU, China--(BUSINESS WIRE)--CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. ('CDB Leasing'), announced the execution of new lease agreements for six Airbus A321neo aircraft with its Chinese airline customer, Zhejiang Loong Airlines Co., Ltd. ('Loong Air'). We are pleased to strengthen our partnership with Loong Air through this transaction, which underscores our commitment to supporting the growth of China's aviation sector. Share The Hangzhou-headquartered carrier is expected to take delivery of the aircraft in 2027 from the lessor's orderbook. Renowned for its fuel efficiency, reduced carbon emissions, and extended range capabilities, the A321neo, the largest member of Airbus' A320neo family, is well suited to enhance Loong Air's operational efficiency and sustainability goals. 'We are pleased to strengthen our partnership with Loong Air through this transaction, which underscores our commitment to supporting the growth of China's aviation sector,' said Jie Chen, Chief Executive Officer of CDB Aviation. 'The A321neo's superior economics and passenger comfort align perfectly with Loong Air's vision of expanding its domestic, international and regional network.' Established in 2011, Loong Air operates a fleet of over 70 Airbus A320-family aircraft, serving major Chinese cities and select international routes. The addition of the A321neos will enable the airline to boost capacity on high-demand routes while maintaining its focus on cost efficiency and environmental responsibility. 'This agreement marks another milestone in Loong Air and CDB Aviation's strategic partnership of more than 10 years,' commented Qihong Liu, Chairman of Loong Air. 'We also hope to continue to explore new opportunities of cooperation with CDB Aviation and jointly promote innovative development in the future. The A321neo's enhanced performance and cabin flexibility will allow us to offer an elevated travel experience to our passengers, while supporting our long-term sustainability objectives.' Forward-Looking Statements This press release contains certain forward-looking statements, beliefs or opinions, including with respect to CDB Aviation's business, financial condition, results of operations or plans. CDB Aviation cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may,' 'will,' 'seek,' 'continue,' 'aim,' 'anticipate,' 'target,' 'projected,' 'expect,' 'estimate,' 'intend,' 'plan,' 'goal,' 'believe,' 'achieve' or other terminology or words of similar meaning. These statements are based on the current beliefs and expectations of CDB Aviation's management and are subject to significant risks and uncertainties. Actual results and outcomes may differ materially from those expressed in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to, and will not, update any forward-looking statements, whether as a result of new information, future events or otherwise. About Loong Air Zhejiang Loong Airlines Co., Ltd. ('Loong Air') was established on April 19, 2011, with its first cargo flight launched on August 9, 2012, and its first passenger flight on December 29, 2013, Based on Hangzhou, Zhejiang Province. The company serves as Zhejiang Province's leading home-based airline and one of the key players in the aviation industry. Loong Air has established three branches in Northwest, Southwest, and Central-South of China. To date, its fleet size reach to 73, operating domestic and international passenger and cargo routes covering Mainland China, Hong Kong, Macau and extending to Japan, South Korea, Southeast Asia, South Asia, and Central Asia, transporting over 10 million passengers annually. The company is committed to four major development visions: high-quality, group operations, intelligence and international, to establish itself as a world-class aviation group. About CDB Aviation CDB Aviation is a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Ltd. 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Forbes
13 minutes ago
- Forbes
New EU VAT Rules For E-Commerce Imports Take Effect In 2028
Shopping online concept Starting July 1, 2028, new VAT rules will apply to e-commerce imports into the European Union. E-commerce sellers and platforms handling online sales will be responsible for collecting VAT on imported goods and can no longer shift this obligation to customers. This change follows a directive adopted by the EU's Council of Finance Ministers (ECOFIN) on July 18, 2025. It represents a significant change from how VAT is currently collected on cross-border e-commerce. To understand the impact, it's helpful to look at how the current system works and why the EU wants to change it. How VAT on Imported Goods Works Today Right now, when a business outside the EU sells goods to a customer within the EU, VAT is due. This applies regardless of the value of the goods. Unlike customs duties, which apply only to shipments worth more than €150, VAT applies to all commercial imports. VAT can be collected at two points. The first is at the time of import, which is the default method for most shipments. VAT is charged when goods enter EU territory and are cleared for free circulation. The person responsible for paying import VAT is the one presenting the goods to customs—this can be the seller or the carrier. VAT registration is not required just to pay import VAT. However, registering may be useful if the importer wants to deduct that VAT as input tax later. The second method, introduced in 2021, applies only to low-value consignments—goods worth €150 or less, excluding items such as alcohol and tobacco. For these shipments, sellers can choose to collect VAT at the point of sale instead of at the border. To do this, the seller must register for the Import One-Stop Shop (IOSS). VAT is then remitted to a single EU country where the seller is registered. Under IOSS, import VAT is waived, which allows goods to clear customs more quickly. However, IOSS is optional. If a seller chooses not to use IOSS and the goods are valued at €150 or less, another special regime may apply. In this case, postal operators or express couriers can pay the import VAT on behalf of the customer and collect it at the time of delivery. This means that most sellers can decide how to handle VAT on low-value shipments. Some register for IOSS. Others rely on couriers to collect VAT from the customer. If none of these special regimes is used, the default rules apply, and import VAT is due when the goods enter EU customs territory and are released for free circulation. Delivery Options for E-Commerce Sellers Shipping to the EU How do these VAT rules work in practice? For non-EU sellers shipping goods to EU customers, there are three common delivery methods. One widely used option is DDP, or Delivered Duty Paid. Under DDP, the seller is responsible for all import charges, including VAT, customs duties, and clearance fees. These costs can be estimated in advance and included in the checkout price, so the customer pays everything upfront. After the sale, the seller forwards the estimated amounts to the carrier, who manages the entire import process. The carrier handles customs formalities, pays the import VAT, and clears the goods. In this arrangement, the carrier is treated as the importer of record, which means the seller does not need to register for VAT in the EU. DDP helps avoid unexpected charges at delivery, making it a popular choice for businesses that want to offer a smooth and transparent customer experience. Another option is IOSS. If a seller chooses this route, they must register for an EU IOSS VAT number, collect VAT at checkout, and submit monthly VAT returns to the country where they're registered. This allows goods to clear customs without paying import VAT. IOSS is only available for goods valued at €150 or less. It can be a cost-effective solution for sellers handling large volumes, but it often requires appointing an intermediary in the EU, which adds administrative complexity and expense. The third method is to shift responsibility for the import to the customer. In this case, the carrier pays the import VAT on the customer's behalf and collects it from them before delivery. This approach is simpler for the seller, as it avoids any VAT registration requirements in the EU. However, it often leads to poor customer experiences, especially if buyers weren't expecting to pay anything beyond the checkout price. Why the EU Is Changing VAT Rules for Imports The EU has acknowledged that the current VAT system for imported goods is complex and inconsistent. Sellers must choose between multiple schemes, each with different rules, costs, and obligations. The €150 threshold limits the usefulness of IOSS, and allowing sellers to shift VAT collection to customers creates delays and a poor delivery experience. As part of a broader Customs Reform—still to be finalized—the EU aims to simplify rules and tighten enforcement. Proposed changes under this reform include eliminating the €150 customs duty exemption for low-value goods, introducing a simplified tariff regime for such consignments, and expanding the IOSS to cover all goods, regardless of their value. Additionally, the reform would make online platforms the deemed importer, holding them responsible for collecting both VAT and customs duties at the point of sale. However, the most immediate and concrete change is a separate directive adopted by ECOFIN on July 18. It focuses specifically on VAT for low-value business-to-consumer (B2C) goods imported into the EU and will take effect on July 1, 2028. What Changes in 2028 and What Sellers Must Do Under the new law, the seller or the platform facilitating the sale will be responsible for paying VAT in the country where the goods are imported. The option to let postal services or couriers collect VAT on the customer's behalf will no longer exist. Sellers will no longer be able to shift this responsibility to the buyer. To avoid dealing with import VAT at the border, sellers will need to use the IOSS system. If they choose not to use IOSS, they must register for VAT in every EU country where they have customers and goods are delivered. In addition, they'll be required to appoint a tax representative in each of those countries unless their home country has a mutual assistance agreement with the EU—such as the UK or Norway. Without VAT registration or payment, goods will not be cleared by EU customs. In rare cases, EU countries may allow the customer to pay import VAT as a fallback, but this will only apply if explicitly permitted by the Member State—and only in exceptional situations. Why IOSS Will Become the Default Option for Most Sellers The new rules do not change how IOSS works, nor do they fix its current weaknesses. Although the system still has gaps, it will become the only cost-effective way to comply with EU VAT rules on low-value imports. While IOSS remains optional in law, the new framework effectively forces most non-EU sellers to use it. Alternatives will involve multiple VAT registrations, the appointment of local representatives, and significant administrative costs. The businesses most affected will be those that sell low-value goods to EU customers and have, until now, avoided VAT obligations by using courier-based collection or other workarounds. From July 2028, these sellers will need to rethink their strategy for EU e-commerce sales. The opinions expressed in this article are those of the author and do not necessarily reflect the views of any organizations with which the author is affiliated.
