European Union

Until now, China has held a dominant position in the global industrial chain from cathode materials to EV battery manufacturing and vehicle production, supplying nearly half of global core products. But with a major restructuring underway, it will have to tackle rising costs, supply chain shortfalls and the need to tailor resources for different markets.

Despite China’s proposal for peace talks amid the Russia-Ukraine war, the US continues to be wary of China's intentions. Nonetheless, Russia, Ukraine and Europe have expressed support for China’s proposal to varying degrees, which signals positive progress. Lianhe Zaobao correspondent Yu Zeyuan notes that eventually, peace talks will take place.

Caixin sat down for an exclusive interview with Malaysia’s new Minister of International Trade and Industry Tengku Zafrul Aziz on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland, in January. He spoke about Malaysia's and ASEAN's relations with China, and his thoughts on regional and global trade.

French academic Philippe Le Corre notes that France and China’s fairly close relationship seems to have eroded in recent years, mainly due to market access issues and the gaping trade deficit. While President Macron’s visit in 2023 could change the situation, France currently has no clear advantage over other powers in dealing with China.

Italian Prime Minister Giorgia Meloni and her party seem to be adopting a see-saw position on China, notes Italian academic Alessandro Albana. In contrast to voicing strong criticisms in the run-up to the elections, the new right-wing government seems to be engaging China, not least with PM Meloni striking a rapport with China’s President Xi Jinping at the G20 Summit in Bali. Do economic imperatives trump election rhetoric after all?

The ASEAN-EU Summit in Brussels highlighted potential areas for closer cooperation between the two regional blocs, provided leaders can surmount strategic and other differences at this tricky juncture in world politics.

The China Containerized Freight Index, which tracks spot and contractual freight rates leaving major Chinese container ports on 12 shipping routes, began to fall in August. These and other indicators point to Chinese exporters bracing for tough times. The main culprit is demand, which has fallen off in recent months in China’s three biggest export markets — the US, the EU and ASEAN.

This year’s dramatic geopolitical changes have significantly altered the calculus for foreign investment in China as large European enterprises are increasingly taking the lead and Japanese businesses are retreating in manufacturing and advancing in services. American companies, on the other hand, are frozen as the US government imposes tough sanctions on China’s tech sector and as manufacturers weigh strategic moves back to the US.

Analysing German Chancellor Olaf Scholz’s recent visit to China, former journalist Goh Choon Kang offers the view that Germany — along with much of Europe — has been “weaponised” by the US for its own aims, whether in terms of China policy or the war in Ukraine. This is a clear lesson for other countries, those in Southeast Asia included.