The Biden administration reportedly will announce new tariffs as high as 100 percent on Chinese electric vehicles and additional import taxes on other Chinese goods, including semiconductors, as early as Tuesday. The Biden administration has been justifying this move with hype of "overcapacity" and "unfair competition," allegingthat Chinese new energy product exports threaten US manufacturers.
It seems that US politicians have wokenup after decades of consumerism hangover, during which they cared only aboutconsumption and not for production. Now, they want to rebuild their manufacturing capacity, but the horse has already bolted. The solution would be exactly the opposite of what they are doing, that is, they should rebuild their industrial capacities with the help of - while not suppress Chinese industrial power.
As to the effects on the US economy, green transition is rather expensive and it will be even more expensive without Chinese products.
In the logic of the so-called green transition, which aims to de-carbonize the economy in the shortest time possible in order to mitigate climate change, opposing Chinese exports of new energy products makes no sense. Chinese products, in fact, being more affordable and available "off the shelf," would make the transition cheaper and faster.
Any factor that can reduce such costs, such as Chinese technology and Chinese products, should be welcomed by economists and decision-makers.
Behind the overhyped"overcapacity"narrative, I also see a geopolitical reason and a way to blame China for Washington's failures. The US has decided to hinder China's growth under the baselessassumptions. Some US politicians are afraid of losing the dominant political, financial and technological position in the world.
Does China have an "overcapacity" in green production?
Overcapacity should reflectan imbalance between demand (lower) and supply (larger), but it is often misused. If we look at the global demand for new and clean energy, we have an under-capacity. Especially in Africa some of its 1.4 billion people currently lack access to electricity. Most of them are in Sub-Saharian Africa, in countries which, even if they want to, have neither the financial or the physical means to satisfy that demand.
It is obvious that the technology must be brought in from countries like China and other industrializednations. I do not call that "overcapacity" but rather theexport of capital goods, and Chinese new-energy products are competitive because of economy of scale and innovation.
Another argument often used against Chinese firms is that they do not compete on a "level playing field" with US companies. Chinese firms are often accused of enjoying government subsidies that allow for unfair competition with US firms, which supposedly do not receive subsidies. This is not true.
US producers of solar panels, EVs and other "new energy" products have enjoyed, directly or indirectly (sometimes through electricity prices or purchase bonuses), government subsidies. Or take the case of CO2 certificates, which are one way in which companies such as Tesla are massively subsidized by producers of conventional cars.
The opinion is based on an interview with Claudio Celani, economic editor of news magazine Executive Intelligence Review
At a time when Western media outlets have focused on the potential trade dispute between China and the EU, the attention on how China-France economic and trade relations will gain new momentum for further development has increased significantly.
Behind the complexity of trade relations lies the impact of external factors - such as the uncertainty of the global economic recovery, the escalation of geopolitical conflicts, and most importantly, the US push for a "decoupling" policy toward China - on the economic cooperation between the two countries.
Yet, such complexity is far from derailing the complementarity in bilateral trade relations, which remains an important force for promoting cooperation between the two countries. France was one of the earliest Western countries to invest in and set up joint ventures in China. It was also the first Western country to cooperate with China on civilian nuclear energy, the first Western country to sign an intergovernmental scientific and technological cooperation agreement with China, and the first Western country to open a direct air route with China.
In China-France relations, economic and trade cooperation has always been a crucial stabilizing force. Over the past six decades, bilateral trade has surged by more than 800 times. Now, France is China's third-largest trading partner within the EU, with bilateral trade reaching $78.9 billion in 2023, while China is France's largest trading partner in Asia and the seventh-largest globally.
The fruitful development of bilateral economic and trade relations lies in the solid foundation of cooperation and the highly complementary economic structures of both sides. China has a competitive advantage in manufacturing, electronics, and machinery and equipment, while France excels in aerospace, nuclear energy, high-end consumer goods and agricultural products.
Such economic structures provide both countries with vast trade and investment opportunities.
In particular, with China's economic restructuring in recent years, the upgrading consumption trend has brought new opportunities for France's consumer goods and services industries.
Bilateral agricultural has been on the rise over the past 10 years, according to Chinese media reports. When French President Emmanuel Macron visited China in April 2023, the two countries signed cooperation agreements aimed at strengthening their partnerships in agriculture, food, and technology. French meat, grain, poultry and other industries are actively pursuing opportunities in the Chinese market.
In the first two months of this year, French direct investment in China surged by 585.8 percent year-on-year, according to data from China's Ministry of Commerce. If anything, it reflects the optimistic expectations of French companies for China's economic potential and their recognition of the vitality of the Chinese market.
Practical cooperation will continue to thrive, with opportunities not only in traditional sectors such as aerospace and nuclear energy, but also in emerging areas like the energy transition and green development.
With this promising future, it is essential for both sides to work together to protect their cooperation momentum from potential disruptions caused by the "decoupling" or "de-risking" push.
Continued practical cooperation in bilateral economic ties is not only essential for the relationship between the two countries, but also plays a crucial role in advancing the broader long-term China-Europe relationship.
A think tank report titled "China-EU Cooperation on Environment and Climate: Progress and Prospects" was released on Friday. The report called for the further strengthening of the bilateral green partnership and making contributions to promoting a cleaner and more beautiful world.
China is making efforts to improve the access of foreign companies to the Chinese market, as seen in the shrinking negative list for foreign investment and the improving investment climate.
It is sincerely hoped that France will meet China halfway, fostering greater bilateral trade and investment cooperation through enhanced communication and coordination, ultimately contributing to the stability and prosperity of the global economy.
China's Ministry of Commerce (MOFCOM) announced on Tuesday that it has launched an anti-dumping investigation into imports of cypermethrin originating in India, after receiving an application for investigation from a domestic chemical company.
Experts noted that compared with India's unjustifiable oppression of Chinese industries and enterprises in India, the MOFCOM investigation is justified. They urged the Indian side to take a correct view of the competition between the two countries and stop hindering the development of globalization.
According to the announcement, the ministry received an application for an anti-dumping investigation submitted by Jiangsu Yangnong Chemical Industry Co on behalf of China's cypermethrin industry on April 2, under which the applicant requested an anti-dumping investigation into imports of cypermethrin originating in India.
Cypermethrin is mainly used for the production of insecticide formulations, which is widely used in agriculture, healthcare and other fields for the control of pests in cotton, fruit trees, vegetables, tobacco, corn and flowers.
Based on the evidence provided by the applicant and the review results of the MOFCOM, the ministry decided to start an investigation, and the investigation period of the dumping actions is from January 1, 2023 to December 31, 2023.
The investigation commenced on Tuesday, and it should normally be concluded by May 7, 2025, with a six-month extension under special circumstances.
Stakeholders should register with the related department of the MOFCOM to participate in the anti-dumping investigation within 20 days from the date of the announcement, said the ministry.
"China's investigation is reasonable. However, India has one of the highest numbers of anti-dumping investigations against Chinese industries of any country, combined with its continuous suppression of Chinese enterprises in the past few years," Liu Zongyi, director of the Center for South Asia Studies at the Shanghai Institutes for International Studies, told the Global Times on Tuesday.
A main reason why India has been suppressing Chinese companies is that the country believes that the trade war with China initiated by the US will become an opportunity for India to develop its own industry, Liu said.
Liu noted that competition between countries in certain economic areas is a very normal phenomenon, and the key is to look at it with a fair and just mindset.
Total China-US tradeexpanded 1.1 percent year-on-year to 1.47 trillion yuan ($203.42 billion) in yuan-denominated terms in the first four months, reversing a 0.7percent contraction in the first three months, customs data showed on Thursday.
The return of growth underscored the resilience and complementarity of trade relations between the world's two largest economies, which will retain a ballast role in the bilateral relationship, observers said. They predicted that more potential could be released this year if the US can check its urge to relentlessly contain China's development.
The surging trade sent a stern warning to certain US politicians and their decoupling push against Chinese exports, either in the guise of smearing "overcapacity" or hyping "de-risking," analysts said. It shows that those politicians' actions - motivated by geopolitical intentions - severely deviate from the interests of the US business community, and only pragmatic cooperation with the Chinese side would lead to win-win results, they noted.
In the first four months, China's exports to the US grew 2.4 percent year-on-year to 1.08 trillion yuan in yuan-denominated terms, while imports edged down 2.5 percent to 387 billion yuan, according to data from the General Administration of Customs.
The US remained China's third-largest trading partner in the first four months, after ASEAN and the EU, according to the Global Times' calculations.
In the first quarter, China's exports to the US gained 2.1 percent, while imports were down 7.7 percent.
In April alone, bilateral trade reached 400.3 billion yuan, customs statistics showed, compared with 386.8 billion yuan a year earlier.
Observers said that bilateral trade showed a turnaround between March and April, amid animproving and stabilizing trajectory of bilateral relationships. Exchanges of high-level officials have intensified in recent months.
"It also showed that the Chinese and US economic structures are highly complementary andunderscored the win-win nature of bilateral cooperation," Gao Lingyun, an expert at the Chinese Academy of Social Sciences, told the Global Timeson Thursday.
The increasing competitiveness of Chinese quality exports to the US consumer market also showed that Chinese manufacturers have helped the US to mitigatepersistent inflation, analysts added.
Gao said that the rebound also reflected a broad recovery in global demand, which bodes well for China's overall foreign trade this year. In the first four months, China's merchandise trade rose 5.7 percent year-on-year to13.81 trillion yuan.
China-US trade is likely to continue the positive momentum in the coming months and exceed last year's level, taking account of the low base effect and the stronger US dollar, Gao said, though the upcoming US presidential election will mean some uncertainty for bilateral relations.
"The US may regain its position as China's second-largest trading partner this year, depending on how China's trade with the EU develops," Gao said.
China's trade with the EU fell by 1.8 percent to 1.75 trillion yuan in the first four months, which observers said was partly due to the sluggishness in the bloc's economy.
The release of thetrade data came as US politicians ramped up a crackdown against Chinese advantageous industries, using "overcapacity" claims to justify more protectionist measures against Chinese exports.
Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Thursday that the vigorous trade shows that the malicious geopolitical intentions of politicians represent a serious departure from the true interests and trading activities of US businesses.
"The US market did not buy into Washington's decoupling push, and it is eager for more pragmatic cooperation with the Chinese side," Cong noted.
The US reportedly revoked licenses that allowed companies including Intel and Qualcomm to ship chips used for laptops and handsets to Huawei, Reuters reported. Observers said that Chinese companies could have imported more US products if Washington had not imposed so many export restrictions.
Chinese President Xi Jinping left Budapest on Friday after paying state visits to France, Serbia and Hungary. Hungarian Prime Minister Viktor Orban bid farewell to Xi at the airport.
Chinese people believe that letters are as valuable as gold. For thousands of years, letters, across mountains and oceans, have been delivering the writers' sentiments and conveying friendship and expectations.
Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee and Chinese president, has managed to find time to reply to some letters from different sectors of the society and different parts of the world despite his busy work schedule.
Through his letters, Xi has corresponded with international friends from all walks of life on numerous occasions, part of a series of excellent stories of China's international exchanges in the new era. The letters have also added vivid color to the diplomacy between China and other countries.
The Global Times traced and contacted some of the recipients of Xi's letters to hear the inspiring stories behind the letters and their communications with the Chinese president.
In this installment, Serbian steelworkers share with the Global Times their excitement at receiving Xi's reply letter before the Chinese president's visit to Serbia and the story of how close cooperation between the two countries revived the century-old Smederevo steel plant. At around 8 pm on April 30, 2024, when Serbians were ready to embrace the May Day holiday and the Orthodox Easter, Nenad Cvetanovic, head of operations at the hot mill at HBIS Smederevo steel plant, or Hesteel Serbia, got a phone call asking him to stay in the plant because the Chinese Ambassador to Serbia Li Ming would "come to share something with us."
"That was amazing," Cvetanovic and his colleagues thought when they got to know what the surprise was - Chinese President Xi Jinping had replied to their letter days before his second state visit to Serbia after eight years.
Cvetanovic first had the idea to write a letter to Xi in February 2024 when he read a media report saying that the Chinese president might be visiting Serbia again. The idea was widely embraced by his colleagues.
In the letter signed by workers from different departments at the steel plant, they expounded on the latest developments at the plant and its important role in the local economy and people's livelihoods, and they thanked Xi for his care and support for the joint venture located in Smederevo, a small city about 60 kilometers southeast of the Serbian capital Belgrade.
In his reply letter dated April 29, Xi recalled his visit to the plant in June 2016 when he deeply felt the workers' support for the mutually beneficial cooperation between China and Serbia, and their high expectations for a bright future for the steel plant, according to Xinhua News Agency.
It is a great pleasure to learn that the steel plant has turned losses into gains quickly after the investment of a Chinese-funded enterprise, with the jobs of more than 5,000 employees guaranteed, and thousands of families enjoying a peaceful and happy life, Xi said in the letter.
The development of the steel plant could not have been achieved without the dedication and hard work of the workers, who have been working diligently for the quick growth of the steel plant and have written a new chapter for the iron-clad friendship between China and Serbia.
I give you the "thumbs up," Xi said.
The reply letter shows that our efforts are recognized and appreciated and we feel honored and encouraged, Bojan Popovic, head of department of materials management and maintenance at the Hesteel Serbia, told the Global Times.
"It reinforced our belief that the strong bond between China and Serbia is built on the efforts of ordinary workers like us," Popovic said. "We are proud to be part of this partnership and to contribute to the growth and success of our steel plant, and thus, to the development and strengthening of our economic ties." Rebirth of a plant
The steel plant, first established in 1913, has long been a pillar of former Yugoslavia's metal industry, but it encountered difficulties in the 1990s. The plant then entered two decades of struggle of survival and, in 2012, then owner US Steel Corporation sold the plant to the Serbian government, leaving it with more than 5,000 employees and massive liabilities.
The Global Times learned from senior workers of the steel plant that production was frequently halted at that time. The first thing they would do after waking up in the morning was to check whether smoke was rising from the plant's chimney or not. People did not dare to get married or have babies because they feared they would lose their jobs as the factory could close at any moment.
The light of hope arrived in April 2016 when China's Hesteel Group purchased the plant at a price of 46 million euros ($49.55 million), months after China and Serbia signed in November 2015 a memorandum of understanding within the framework of the China-proposed Belt and Road Initiative (BRI).
During President Xi's state visit to Serbia in June 2016, he made a trip to the steel plant and interacted with workers in the dining room, encouraging them to work hard to bring benefits to local residents.
The purchase and Xi's visit greatly boosted the morale of all the workers; smiles returned to their faces and they started to "plan for the future."
The Global Times learned that Chinese executives from Hesteel did a thorough investigation, finding out that the factory possessed quite good industrial bases and could produce some competitive products even with its then outdated equipment; but the implemented cost control was ineffective.
Therefore they enhanced the management of the steel plant, combining Chinese experience with local practices, streamlined the production process, increased workers' salaries, upgraded equipment and expanded recruitment, and made efforts to tackle the pollution problem.
Upholding the principle of localization of corporate culture, personnel, and benefits, the 13-member Chinese executive team and 5,000-strong Serbian managers and workers' body strived in solidarity to revive the plant and raise it to new heights.
Through unremitting efforts by and from both sides, the plant turned losses into profits in just a few months by year-end of 2016, made a record production volume of 1.77 million tons in 2018, marked a best-in-history revenue of 200 million euros in 2021, and the output value reached 1 billion euros in 2022, Song Sihai, executive director of Hesteel Serbia, told the Global Times.
Joint efforts for future
Plant worker Aleksandar Duncevic recalled all the changes brought about by the takeover and the joint efforts by the Chinese buyer and local Serbian staff, which gave Duncevic "a strong sense of certainty and security," and allowed him to "make plans for the future."
Felic Nenad, who was among the crowds to welcome Xi in 2016, described the China-Serbia cooperation as a "light at the end of the tunnel."
"Now we have new production lines, higher output, and cleaner air… It made a big difference for our city and our country," Nenad told the Global Times.
The Global Times learned that after an investment of 300 million euros to enhance energy efficiency and environmental protection in 2022, the company marked a new milestone in 2023 by dropping dust pollution to 34.8 mg/Nm3, the first time in the plant's history and way lower than EU standards.
Cvetanovic was obviously excited when talking about the plant's new gasholder, upgraded furnace, and finishing mill - industry terms that are concrete evidence of Hesteel Serbia's bright future.
Stefan Nesic, head of temper mills, cutting, packaging, and shipping in the cold rolling mill, started to work at Hesteel Serbia in late 2017. But through conversations with colleagues who were there during Xi's visit, he got the impression that "the visit was of great importance for the morale of the entire factory and has kept encouraging the Serbian workers to join hands for an even better future."
Nesic also told the Global Times that he appreciates the company's comprehensive support for employees from steady paychecks and an improved working environment, to future career development, including his own pursuit of doctoral studies in metallurgical engineering at Belgrade University.
"Our expectations for the future are very positive and optimistic, as the factory shows that it cares about process improvement, new investments, environmental protection, and the quality of its personnel," Nesic said, expressing his hope that Hesteel Serbia will be an increasingly competitive entity in the European and international steel markets.
In 2016, factory workers presented a round plate with the silhouette of the steel plant to President Xi as a gift, writing the first chapter of this time-weathered factory's new story featuring China-Serbia cooperation.
Now, the success of Hesteel Serbia is an embodiment of this "ironclad" friendship and continues to tell success stories of the BRI cooperation.
"Future" is a word that appeared frequently in conversations with Smederevo steelworkers, which is in sheer contrast with the uncertainty and insecurity of the past.
The future of the steel plant is being authored by every Serbian and Chinese personnel in pursuit of a better life; the future of China-Serbia relationship is to be determined by numerous Serbian and Chinese people who have made contribution to boost the warm bilateral exchanges and stronger ties in trade, economic cooperation, culture, and beyond.
China and France should uphold mutual benefits, jointly oppose acts of "decoupling" and disrupting industrial and supply chains, and say no together to building barriers, President Xi Jinping made the remarks on Monday when holding talks with his French counterpart Emmanuel Macron in Paris.
China and France should uphold independence and jointly fend off a "new Cold War" or bloc confrontation, Xi said, the Xinhua News Agency reported. Xi also attended a welcome ceremony held by Macron on Monday.
Earlier on the day, Xi attended a China-France-EU trilateral meeting with President Macron and European Commission President Ursula von der Leyen at Elysee Palace.
In a signed article published Sunday in French media Le Figaro, Xi said we live in a world that is far from being tranquil and is once again facing a multitude of risks. China is ready to work with France in the spirit that guided the establishment of our diplomatic ties to forge a stronger comprehensive strategic partnership between our two countries and make new contributions to stronger cooperation of the global community.
Strategic guidance
Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China, told the Global Times on Monday that Xi's visit to France marks the climax of China's diplomacy toward Europe this year. And EU is crucial in the process of promoting political multipolarity and economic globalization.
On Tuesday, Macron will take Xi to the Pyrenees, a mountainous region dear to the French President as the birthplace of his maternal grandmother, according to Reuters.
Such a special arrangement by Macron has the meaning of courtesy and shows the special relationship between the two heads of state, as well as a kind of frankness, analysts said.
Tian Dewen, deputy director of the Institute of European Studies of Chinese Academy of Social Sciences, told the Global Times that in the past five years, China-EU relations have encountered difficulties, but China-France relations have been relatively stable. This is directly related to the Macron government's implementation of positive and pragmatic relations with China.
China is a very important external force for France and Europe to realize strategic autonomy, and it can certainly consolidate France's leading position in Europe if it can maintain a communicative and interactive relationship with China, experts said.
Seeking consensus
China regards Europe as a priority of its major-country diplomacy with Chinese characteristics, and an important partner in achieving Chinese modernization, Xi said at China-France-EU trilateral meeting held earlier on Monday.
As the world enters a new period of turbulence and transformation, China and the EU, as two major forces in the world, should continue to see each other as partners, stay committed to dialogue and cooperation, deepen strategic communication, enhance strategic mutual trust, build strategic consensus, carry out strategic coordination, work for steady and sound growth of China-EU ties, and continue making new contributions to world peace and development, Xi said.
According to AFP, Macron told Xi that coordination with Beijing on "major crises" including Ukraine and the Middle East was "absolutely decisive" and essential.
He Zhigao, a research fellow with the Institute of European Studies from the Chinese Academy of Social Sciences (CASS), said that the trilateral meeting highlights an important opportunity for China and Europe to strengthen high-level exchanges, communicate on major issues, and enhance strategic consensus.
"By talking about some of the current challenges facing China-Europe relations and the demands of both sides, they can continue the stability and cooperation space of the current relations, so that the relations will not slide into a new Cold War led by the US. China-Europe relations now play a more important role in shaping global order than ever," He told the Global Times.
Von der Leyen said that it is important that the EU maintains good relations with China, and this will determine whether global challenges such as climate change and the Ukraine crisis can be better addressed.
Xi urged the two sides to properly address economic and trade frictions through dialogue and consultation, and accommodate each other's legitimate concerns.
Whether viewed from the perspective of comparative advantage or global market demand, there is no such thing as "China's overcapacity problem," Xi said.
Sense of autonomy
Sun Keqin, a research fellow at the China Institutes of Contemporary International Relations, told the Global Times that the US has very deep involvement in European affairs.
"US interference remains, but Europe has kept a certain degree of autonomy and is able to cooperate with China, especially the French leadership which has always had a strong sense of strategic autonomy in a pragmatic manner," said Sun.
Through the visit of the Chinese top leader, Europeans will also have the opportunity to think about how to handle its relations with China, whether to follow the US to engage in confrontation and lose their own interests, or to jointly develop mutual benefits and get win-win results, the expert said.
Chinese President Xi Jinping has called on the young people in the new era to strive to write their youthful chapter of shouldering responsibility for Chinese modernization.
Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, made the remarks in his messages for Chinese youth ahead of China's Youth Day, which falls on Saturday.
Xi, on behalf of the CPC Central Committee, extended festive greetings to young people nationwide in his messages.
AITO Automobile, a Huawei-backed new-energy vehicle brand, said it is actively investigating the incident in collaboration with the local traffic police department after a serious traffic accident took place in Yuncheng, North China's Shanxi Province.
The announcement came after a Huawei AITO M7 burst into flames after crashing into a sprinkler truck on a highway on Friday afternoon in the city, killing all three passengers on board, including a 2-year-old boy, according to chinanews.com.cn.
The company is actively cooperating with the local traffic police department to conduct accident investigations, providing all necessary data to reconstruct the cause of the accident, and offering all possible support to the families of those involved, said AITO in a statement released on its WeChat public account on Sunday.
The automaker said the vehicle was traveling at a speed of 115 km/h at the time of the collision. The safety airbags deployed as intended, and the characteristics of the power battery pack operated normally, it said.
The family is reported to have bought the car just three months before the tragedy, and the exact cause of the accident remains under investigation, domestic media outlet 163.com reported.
The investigation results will be released soon by the local traffic management authority, said AITO.
AITO delivered a total of 31,727 cars in March, maintaining its top position among new emerging automotive brands for the third consecutive month, according to data released by AITO in April.
The "Intelligent Hand – Golden Phoenix · Yishu 8 Sino-French Craft Exchange Program" announced this year's winner on Saturday. Hua Yong, a handicraft artist who graduated from the Academy of Arts & Design at Tsinghua University, was named the winner of this year's award among the 19 shortlisted artists.
With wood as its theme, the program aims to explore new contemporary expressions of this ancient craft. Minister Counsellor for Culture, Education and Scientific Affairs of the French Embassy in China Nicolas Pillerel and other guests were present for the ceremony.
In addition to a prize of 20,000 yuan ($2,900), Hua will also have a two-month residency and a solo exhibition at the Cité Internationale des Arts in Paris as well as an exhibition at the Art 8 Beijing Art House.
Hua said she felt honored to receive the award. She said she looked forward to seeing traditional Chinese craftsmanship “bursting into new life in Sino-French exchanges. I hope that craftsmanship, as a borderless language, can transform the crystallization of ancient Eastern wisdom into contemporary life through design."
This event was part of the China-France Year of Culture and Tourism, showcasing the creative achievements of Chinese and French artists, and paying tribute to the 60th anniversary of the establishment of diplomatic relations between the two countries.
