European Tour 2023: Meeting with Egmont Institute

2023-01-10 | All chapters

• VD welcomed the delegation and apologised for the absence of his colleagues. He explained that as it was first day on the job he would be in ‘listening mode’.
• CH introduced the main themes from the Chamber’s Position Paper, explaining how the Chinese market is now seen by European business as less reliable, less predictable and less efficient. He also noted that going into 2023, there is a great deal of investor uncertainty towards China.
• MS gave an overview of the difficulties caused throughout 2022 due to quarantine restrictions, and how they impeded business travel and normal interactions. He explained one of the main advocacy points was the IIT situation in China, which turned into a positive. He noted that this seemed to be a top-level, last-minute decision as increasing numbers of foreigners were looking likely to leave China, with many having left already.
• RD explained that opening of the border does not represent proper ‘opening’. He noted the crucial need for proper exchanges to be reinstated in terms of projects. He noted the important role of universities as they educate the workers and leaders of the future, and reiterated that China’s reliability, predictability and efficiency has gone.
• VQ said that liner shipping business benefitted initially from China’s COVID management, however, there has been a downward trends of export volume from China since lockdowns in Shanghai. He noted the current infection rate in China is very high—estimated around 80% of his companies’ workforce in China—so people cannot go to the office, and also that manufacturing is down overall. He also lamented that the usual Chinese New Year rush for exports is not there this year. He explained that freight rates are down to pre-pandemic levels. He also noted that doing business in China is not a free market economy, as there is a lot of interference from government in terms of rates, business relationships with partners and even in terms of the structure that businesses take. VQ noted the lack of reciprocity in international cargo relay in China, despite opening of a cargo relay pilot in Shanghai, which still has a lot of barriers, and that EU authorities need to address these matters with China.
• ZX outlined the scale of the energy sector for both EU and China and its importance for countries’ overall security. He noted as the largest market for energy production and consumption, China cannot be overlooked. He also noted the importance of energy in all supply chains, and its close links with the climate issue, so there needs to be a focus on an EU-China Energy dialogue that encompasses that. He noted that China’s 30/60 decarbonisation targets are a big opportunity for European companies that have the expertise and technology. However, he also noted that China is building its capacity rapidly, such as in solar and wind, and that there is a need for the EU to learn from China and to accelerate European innovation to compete.
• AS outlined how the agglomeration of Chongqing and Chengdu has excluded foreign companies. He explained how the Southwest China Chapter has been advocating for inclusion in the project, in order to increase competition and quality of the projects, and noted how their current exclusion is an example of ideology trumping the economy, as EU companies can potentially add more for less. He reiterated the purpose of the Chamber’s visit to Brussels is to continue to engage and the keep doors of communication open.