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South China Morning Post
5 days ago
- Business
- South China Morning Post
Xi meets EU leaders, China's little-known oversupply problem: SCMP daily highlights
Catch up on some of SCMP's biggest China stories of the day. If you would like to see more of our reporting, please consider subscribing At a meeting in Beijing on Thursday, President Xi Jinping urged European leaders to 'make the right strategic choice' as the world grapples with profound changes. He made the remarks to European Commission President Ursula von der Leyen and European Council President Antonio Costa, who are in Beijing for a summit that some Chinese analysts expect to be tone-setting for China-EU relations. Six university students drowned in an industrial tank during a field trip to a mining operation owned by China's most prestigious gold producing company, according to state news agency Xinhua. US President Donald Trump meets with Philippine President Ferdinand Marcos Jnr in the Oval Office at the White House in Washington, on July 22. Photo: TNS The United States has struck new trade deals with Indonesia and the Philippines, in a move analysts say could indirectly undercut China by reshaping regional supply chains and tapping rare earth reserves – even if Beijing is not explicitly targeted.
Washington Post
6 days ago
- Business
- Washington Post
Bound for Beijing, E.U. leaders are in a fix between Trump and Xi
BRUSSELS — The European Union's top leaders are traveling to Beijing for a meeting on Thursday marking 50 years of diplomatic ties with China that at the moment are more a source of stress than celebration. The relationship has soured further in recent weeks over a host of issues, including trade disputes and China's support for Russia. The E.U. traditionally could count on the United States as an ally in pressuring China, but now finds itself under threat of tariffs by President Donald Trump, leaving the 27-nation bloc confronting tensions with the world's two largest economies, which are also embroiled in their own tariff standoff. 'You've got this kind of two-front hit,' said Andrew Small, a fellow at the German Marshall Fund who has advised the E.U. on China policy. 'And it's a moment in which China could decide to squeeze even harder.' The E.U. had hoped it could resolve some frictions with Beijing or clinch a tariff deal with Trump by now, strengthening its hand with China. 'The fact they have neither makes things more difficult,' Small said. 'You can see this already leading to a kind of mindset of 'you can't afford to look too weak.'' In Brussels, there is anger over China's partnership with Russia during its war in Ukraine and over the flow of cheaper Chinese goods into European markets. In Beijing, there is frustration over E.U. tariffs on Chinese electric vehicles and over E.U. sanctions on Chinese banks accused of aiding Russia's war effort. The E.U. was also unnerved by export controls that China imposed in April, as part of Beijing's trade fight with Trump, which restricted shipments of rare earth minerals and magnets that European companies depend on for manufacturing everything from cars and smartphones to weapons. In June, the United States and China reached a deal to lift the restrictions on some rare earths exports. In this hostile climate, even organizing Thursday's meeting was a challenge. Originally planned for two days, it was shortened to just one. And expectations are low, with E.U. officials saying they do not expect the two sides to issue a joint declaration. Nonetheless, China has confirmed that its leader, Xi Jinping, will meet European Commission President Ursula von der Leyen and European Council President António Costa on Thursday. When they do, Trump's shadow will loom large. E.U. officials maintain that they will chart their own path with China, though they often calibrate their approach based on the state of relations with their closest traditional ally, the United States. But with Trump threatening tariffs that could upend their own trade relations, Brussels cannot rely on Washington's muscle. China, seeing Europe in Trump's crosshairs, seems more emboldened to stand up to E.U. scolding over relations with Russia and alleged unfair trade practices. China denies violating trade norms or engaging in human rights abuses. Beijing is frustrated because 'even with that amount of pressure from America, Europe doesn't want to commit to China in a different way,' said Kerry Brown, a professor of Chinese studies at King's College London and a former British diplomat in Beijing. 'China's main message to Europe will be: 'Look, who's your friend? America says it's your friend, and yet it's putting tariffs on you,'' he added. Ahead of Thursday's meeting, the E.U. has adopted a stern tone, calling the summit an opportunity 'to underline the importance the E.U. attaches to a fair and balanced relationship.' China, meanwhile, says it is a chance to deepen cooperation. 'China has always believed that after 50 years of development, China-E. U. relations … can navigate difficulties and challenges,' Foreign Ministry spokesperson Guo Jiakun told reporters this week. When Trump's tariff blitz first hit U.S. foes and friends alike, some analysts predicted it could push Europe and China closer with the two eyeing each other as a buffer. That has yet to pan out. Instead, each side seems to be digging in. In its latest round of sanctions against Russia, the E.U. for the first time targeted two Chinese banks. China's Foreign Ministry blasted the charges as fabricated and warned of 'a serious negative impact' on economic relations. During a visit to Brussels earlier this month, Chinese Foreign Minister Wang Yi had warned E.U. officials against the decision, according to an official familiar with the discussions, speaking on the condition of anonymity to discuss a sensitive matter. The minister also suggested a Russian loss in Ukraine was not in Beijing's interest because the U.S. could then turn its full focus to Asia, the official said. That exchange was first reported by the South China Morning Post. The E.U. countries — together the world's third-largest economy — have long had a complicated, distrustful relationship with China, which was exacerbated after Russia's 2022 invasion of Ukraine. The relationship has also been strained by E.U. sanctions on China over human rights abuses in Xinjiang, repression of freedoms in Hong Kong, and security issues in the South China Sea. Yet the E.U. countries have at times shown divisions over 'de-risking' ties with Beijing — an E.U. view of China posing as much peril as potential for profit — versus entirely 'decoupling' their economies from China. As Trump's tariff threats roil global trade, European nations have sought to hedge their bets and accelerate free trade talks with others including India. E.U. officials have stressed the need to 'diversify' partnerships and frequently reiterate they can be a reliable partner in an unreliable world. The E.U.'s leaders are on an Asia tour that will begin with a warmer reception in Japan, a Group of Seven ally, on Wednesday before heading to Beijing. Just this month, von der Leyen, head of the E.U.'s executive branch, accused China of 'flooding global markets with cheap, subsidized goods to wipe out competitors.' Another spokesperson for China's Foreign Ministry, Mao Ning, retorted that 'what needs rebalancing' is the E.U.'s 'mindset,' not its economic ties with China. Some E.U. industries, such as German carmakers, are particularly reliant on the Chinese market. The Europeans have tried offering the Trump administration a more united front against China, including to counter Chinese overcapacity. But trade talks with Washington are floundering and the E.U. is considering retaliation to Trump. At the same time, officials say it is in the bloc's interest to set itself apart from the United States. 'I think this is something we really need from China, to not look at the E.U. through the lens of the U.S., but as their largest trading partner,' said an E.U. official said, speaking on the condition of anonymity to discuss preparations ahead of the summit. Europe, like the U.S., shoulders a massive trade imbalance with China that E.U. leaders want addressed. In particular, they want to curb the flow of cheap goods, such as those sold by e-commerce sites Shein and Temu. The Europeans object to China allowing exports of dual-use products that end up in weapons used on the battlefield in Ukraine. Beijing says it is not a party to the war and that it wants peace. China is also keeping channels open, even as it flexes its muscles. Simona Grano, a China expert at the University of Zurich, said Beijing wants to avoid more trade restrictions and maintain access to E.U. markets and technologies, especially as it faces U.S. levies. 'It's been sort of a growing tension,' she said. 'And now we are at the apex of the situation, which is even more difficult because Europe is in between these two superpowers.' Kasulis Cho reported from Taipei, Taiwan. Lyric Li in Seoul contributed to this report.
CNA
6 days ago
- Politics
- CNA
EU officials play down expectations for high-level summit with China
The European Union says its leaders want to engage in frank conversations during Thursday's high-level summit with China. European Commission President Ursula von der Leyen and Council President Antonio Costa are expected to meet Chinese President Xi Jinping and Premier Li Qiang in Beijing. This year marks the 50th year of diplomatic ties between the two sides, but trade disputes and geopolitical differences have soured relations. William Denselow reports from Brussels.
Yahoo
12-07-2025
- Business
- Yahoo
Trump's law of the jungle means U.S. trade deals aren't worth the paper they're printed on, trade expert warns
By dismantling the mechanism that settles international trade disputes, there is no way for countries negotiating with the Trump administration to enforce any bilateral trade agreements. With little incentive to play by the rules, he could simply change the terms of any deal down the road. The best solution would be kicking the U.S. out of the World Trade Organization, argues trade expert Kristen Hopewell from the University of British Columbia, and re-establish the WTO's Appellate Body, the supreme court for global trade. When President Trump threatened Brazil with punishing tariffs on Wednesday, there was no fancy mathematical equation trotted out this time as justification. The 50% levy on goods was retribution for a perceived 'witch hunt' against his political ally, Jair Bolsanaro, whose supporters attempted a coup two years ago. This administration is bringing back the law of the jungle to international trade, according to trade expert Kristen Hopewell, and time is running out to salvage the remains of a post-war system of commerce that promoted stability and prosperity across the world. 'Trump is a totally unreliable negotiating partner,' she tells Fortune. 'Any deal you strike with the administration is not worth the paper it's written on.' As if to hammer home that point, news began to emerge on Thursday that Vietnam had been caught off guard when Trump prematurely announced a 20% duty on all goods entering the U.S. from the southeast Asian country. Vietnamese officials were reportedly still hoping for a number closer to half that. Nor is there any apparent rhyme or reason to his tariffs. Brazil, for example, doesn't even run a trade surplus with the United States—it imported $28.6 billion more goods and services from the U.S. last year than it exported. On Wednesday, when asked how he calculated his various import duties, the president answered that he uses 'a formula based on common sense,' one that reflects 'how we've been treated.' Hopewell, a professor at the University of British Columbia, argues this erratic and fickle approach to international negotiations is symptomatic of a Trump deal: 'He can simply come back later demanding more. There's no guarantee it will actually be upheld.' That's because the president already removed a cornerstone underpinning global commerce during his first administration six years ago when he blocked all appointments to what is essentially the supreme court of the World Trade Organization (WTO) — its Appellate Body. 'The WTO is unique amongst international organizations in that its rules are actually legally binding on states. It has teeth,' Hopewell said. Or rather it had teeth. Since the Biden administration continued its policy of blocking appointments to fill its vacancies, there is now no quorum to adjudicate trade disputes, leaving countries little incentive to abide by the rules anymore. Quite the contrary, they can break them with near impunity. The United States didn't always favor dismantling these guardrails. Over a decade ago, the country led a number of key partners, including Japan and the European Union, to press their rights against China when it attempted to restrict the export of critical minerals, including rare earths. In 2015, they later won in front of the Appellate Body, forcing Beijing to relent. Thanks to Trump, this enforcement mechanism no longer works. In January 2020, just weeks after the WTO's Appellate Body was decommissioned, Indonesia moved to impose a ban on the export of raw nickel. Since it has one of the largest remaining deposits of this element vital for electric vehicle batteries and stainless steel, it reckoned it could compel the creation of a domestic downstream industry for processing and refining the ore. Other countries argued in front of the WTO that it violated the rules and won—or at least they thought they had. Indonesia exercised its right to lodge a formal appeal to the Appellate Body, knowing full well that a ruling that settles the dispute was impossible. 'By appealing into the void, it could continue these WTO illegal export restrictions of nickel and is actually expanding them to other commodities,' Hopewell says. 'Other countries are now mimicking Indonesia and introducing similar bans on mineral exports.' Hopewell believes the moment for bold action has arrived. In a column for Politico this week, she argued the international community should consider expelling the United States from the World Trade Organization in order to revive its paralyzed Appellate Body. 'The stakes are really high, so it's worth considering more radical solutions,' she told Fortune. That attitude, Hopewell says, is no accident. Trump has long sought to undermine the WTO in favor of bilateral deals, where the U.S. holds more leverage. 'Trump is pursuing a divide-and-conquer strategy,' she said. 'He knows the U.S. is strongest when it negotiates one-on-one.' By agreeing to bilateral talks, she argues, foreign governments hoping to protect domestic industries are undermining themselves. 'They're playing right into Trump's hands.' Contacted by Fortune, the WTO Secretariat said it does not comment on the conduct of member states. The White House declined to respond. To many Americans, Trump's aggressive trade stance may appear cost-free. But the fallout has yet to reach consumers, in part because industries like autos stockpiled inventory ahead of new duties. 'It will take some time before the effects of the tariffs are felt in higher prices,' Hopewell said. 'But when that hits, it's going to be a profound economic shock for the U.S.' This story was originally featured on
