[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px||0px|||” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ module_class=”reverse-columns-mobile” _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ global_colors_info=”{}”]<\/p>\n
[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ text_font=”roboto-regular||||||||” text_text_color=”#003a7c” custom_margin=”||0px||false|false” custom_margin_tablet=”||15px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”]Credits: istockphoto\/italianestro, EBLG LOGISTICS, BLG, PWC, istockphoto\/aphotostory, European Chamber of Commerce[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”0px||0px|||” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ global_colors_info=”{}”]Many markets and logistics chains seem to be in the process of reconfiguring themselves in view of the current global situation. However, does this mean that globalisation is already doomed? Frank Dreeke, Chairman of BLG LOGISTICS Group and member of the Central Association of German Seaport Operators (ZDS), does not think so. \u201cI don\u2019t think we\u2019ll see the decline of globalisation,\u201d he said. \u201cI think we\u2019ll continue to live in a globalised world. However, due to the crises we\u2019re experiencing right now, we will have to think more about whether it makes sense to continue producing certain goods overseas or whether it is feasible to relocate more of their production to Europe. The transport routes will change, but not the amount of transport. Perhaps the railways and inland waterways will then play a greater role. Or feeder services, i.e. short-haul trucking along the coast.\u201d<\/p>\n
For Dreeke, the biggest challenge is that we have been waking up to a changed world every day for months and it does not take long for many things that we have been taking for granted to no longer apply as we know them. Concerning the global trade flows and BLG\u2019s logistics activities, he emphasises how important flexibility and adaptability are in these times. \u201cWe have almost 100 locations and branches in Europe, America, Africa and Asia,\u201d he explained, \u201cand we\u2019re increasingly active in a number of markets, such as container handling, automobile transport and finished vehicle processing, as well as a wide range of services in industrial and commercial logistics. It\u2019s our diversified product and service portfolio that makes us robust and adaptable.\u201d <\/p>\n
\u201cThe crises in the ports worldwide have shown the efficiency and resilience that exist in the German ports,\u201d continued Dreeke, addressing the ports in Bremen and Lower Saxony. \u201cThis applies to all the goods we\u2019ve handled \u2013 not just containers, but also cars, bulk goods and conventional freight. German ports are outstandingly competitive.\u201d He views intermodal connections as one of the main strengths German seaports have compared to their international competitors. \u201cGerman ports lead the way internationally in terms of rail connections,\u201d the manager added. \u201cPlus, as far as the size of the vessels is concerned, the deep-water port in Wilhelmshaven gives us additional flexibility.\u201d[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_sidebar area=”et_pb_widget_area_7″ show_border=”off” admin_label=”Werbung Startseite \/ Artikel” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_sidebar][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.4″ background_image=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/BLG_X8A9339-c-BLG_1400.jpg” parallax=”on” custom_margin=”||0px||false|false” custom_padding=”325px||225px||false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.4″ custom_padding=”25px||35px||false|false” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.19.4″ custom_margin=”||25px||false|false” custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ text_font=”roboto-regular||||||||” text_text_color=”#003a7c” custom_margin=”0px||0px||false|false” custom_margin_tablet=”||15px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”0px||0px||false|false” global_colors_info=”{}”]With over 4.8 million vehicles transported per year, BLG LOGISTICS is the leading automotive logistics provider in Europe.[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ global_colors_info=”{}”]<\/p>\n
Dreeke also takes a clear position on the question of a skilful approach to China. \u201cTrading with China is a fundamental decision that Germany made decades ago. In doing so, we\u2019ve always known what kind of political regime we were dealing with in terms of business. And it doesn\u2019t matter whether it\u2019s the automotive industry, the mechanical engineering industry or the chemical industry, China is now one of our most significant trading partners.\u201d However, he is cautious, given the development in recent years. \u201cWhat has changed is the Chinese aspiration to become economically active outside their own country \u2013 i.e. the \u2018new Silk Road\u2019. As Europeans, we would do well to find an answer to this. Each individual country won\u2019t be able to do it alone.\u201d <\/p>\n
Thomas Heck, Head of the China Business Group Germany and Europe at the auditing and consulting firm PwC Germany, and his colleague Peter Kauschke, Director Transport, Logistics & Mobility at PwC, also believe that the days of globalisation are far from numbered. \u201cWe continue to see and anticipate that companies will diversify their procurement channels and also seek new sales markets without abandoning existing ones. As a result, we\u2019re convinced that there will be a shift towards reglobalisation in the sense of reform and renewal,\u201d said Kauschke. Accordingly, he does not expect a complete reversal of globalisation, which would be associated with a turning away from global supply chains. \u201cAfter all, the core challenges of international logistics, such as the supply of raw materials, climate protection and digitalisation, can\u2019t be mastered at all on a national level,\u201d he stated, thus taking the same view as Frank Dreeke.<\/p>\n
As Heck sees it, the sanctions resulting from Russia\u2019s war with Ukraine have highlighted the dependence of Western economies, especially on Russian oil and gas, which has led to an increased awareness of the risks of economic engagement with China. \u201cAlthough China officially takes a neutral diplomatic position towards Russia\u2019s aggression against Ukraine, statements by government representatives create the impression that China is actually on Russia\u2019s side,\u201d he explained. At the same time, he interprets the recently published drafts of the German and EU China strategies to mean that the governments intend to examine China\u2019s influence on the domestic economy much more closely in the future. \u201cGiven the developments of recent years, it\u2019s not only understandable but also necessary for political and business leaders to rethink their strategies, not only with regard to China, but in a much broader context,\u201d said Heck. \u201cWhile global decoupling is not a desirable outcome, companies looking for new growth opportunities must try to avoid the risk of concentrating on one country as a market or on individual suppliers and, at the same time, endeavour to look to emerging economies, for example in Southeast Asia,\u201d he suggested.<\/p>\n
In China\u2019s case, Heck has identified many interesting but also contradictory developments over the past months. In the wake of the stagnating economy \u2013 according to estimates by leading economists, the Chinese economy will only grow by 3.1 per cent in 2022 \u2013 exports to Europe and the USA, among others, have recently declined, while exports to Russia and the ASEAN countries have increased. Moreover, according to recent surveys by various chambers of commerce representing foreign companies in China, overall confidence in the country has suffered, while at the same time foreign direct investment has reached record levels. \u201cAll these, in my view, are clear indicators of the uncertainty that currently prevails in the world markets. No one really knows where the path towards reglobalisation will lead,\u201d Heck stated.<\/p>\n
The Volkswagen Group sees itself as a global player, operating at 120 sites worldwide and offering its ten brands in 153 countries. Nevertheless, the Wolfsburg-based automotive company has been pursuing a certain deglobalisation strategy for some time now. In recent years, it has built up a relatively strong regional supply network, which is why only a small proportion of its automotive parts are supplied globally, a company spokesperson told LOGISTICS PILOT. \u201cGlobal supply networks will continue to decline,\u201d they added, \u201calso because the Group wants to contribute to protecting the environment by reducing emissions. Even today, from an overall economic perspective, we source the majority of our parts locally.\u201d [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/Master_APR_Frank-Dreeke500px.png” alt=”Frank Dreeke, Vorstandsvorsitzender der BLG LOGISTICS Group” title_text=”Master_APR_Frank-Dreeke500px” align=”center” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.19.4″ text_text_color=”#003a7c” text_orientation=”center” global_colors_info=”{}”]<\/p>\n
Frank Dreeke, Chairman
\nof BLG LOGISTICS Group[\/et_pb_text][et_pb_blurb title=”Globalisation” _builder_version=”4.19.4″ header_font=”|||on|||||” header_text_color=”#ffffff” header_font_size=”16px” text_orientation=”center” custom_margin=”50px||20px||false|false” custom_margin_tablet=”” custom_margin_phone=”25px||||false|false” custom_margin_last_edited=”on|phone” custom_css_blurb_title=”display: inline-block!important;||background: #002754!important;||padding: 5px 13px 3px 13px!important;||position: relative!important;” border_width_bottom=”1px” border_color_bottom=”#002754″ global_colors_info=”{}” header_text_color__hover_enabled=”on|desktop” header_text_color__hover=”rgba(255,255,255,0.71)”][\/et_pb_blurb][et_pb_text _builder_version=”4.19.4″ global_colors_info=”{}”]The Federal Agency for Civic Education\u2019s \u201cLexikon der Wirtschaft\u201d (Dictionary of Economics) defines globalisation as \u201cthe increasing emergence of worldwide markets for goods, capital and services, plus the associated international interdependence of national economies. (…) The main players in globalisation are multinational companies, whose investment, production and product strategies increasingly determine the form and characteristics of international trade.\u201d[\/et_pb_text][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/Master_APR_Thomas-Heck500px.png” alt=”Frank Dreeke, Vorstandsvorsitzender der BLG LOGISTICS Group” title_text=”Master_APR_Thomas-Heck500px” align=”center” _builder_version=”4.19.4″ _module_preset=”default” custom_margin=”50px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.19.4″ text_text_color=”#003a7c” text_orientation=”center” global_colors_info=”{}”]<\/p>\n
Thomas Heck, Head of the China Business Group Germany and Europe at PwC[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.4″ background_image=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/iStock-497356960-c-iStock-aphotostory_1200-3.jpg” parallax=”on” custom_margin=”0px||25px||false|false” custom_padding=”225px||225px||false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ prev_background_color=”#ffffff” _builder_version=”4.19.4″ background_color=”#DFE6EE” use_background_color_gradient=”on” background_color_gradient_stops=”rgba(0,58,124,0.13) 0%|#ffffff 100%” background_color_gradient_start=”rgba(0,58,124,0.13)” background_color_gradient_end=”#ffffff” custom_padding=”0px||0px|||” top_divider_style=”waves2″ top_divider_height=”180px” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.19.4″ custom_padding=”0px||0px||false|false” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ text_font=”roboto-regular||||||||” text_text_color=”#003a7c” custom_margin=”0px||0px||false|false” custom_margin_tablet=”||15px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”0px||0px||false|false” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]How high are the hurdles that need to be overcome in trade
\nrelations between Europe and China in the future?[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.19.4″ custom_margin=”||25px||false|false” custom_padding=”125px||||false|false” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/Master_APR_Jens-Eskelund500px.png” title_text=”Master_APR_Jens-Eskelund500px” _builder_version=”4.19.4″ _module_preset=”default” width=”50%” max_width=”50%” custom_margin=”||15px||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.19.4″ header_2_font_size=”35px” custom_margin=”||2px|||” global_colors_info=”{}”]<\/p>\n
[\/et_pb_text][et_pb_text _builder_version=”4.19.4″ custom_padding=”||0px||false|false” global_colors_info=”{}”]<\/p>\n
Mr Eskelund, how do you assess the quality of economic trade between Europe and China? In your opinion, has this tended to improve or deteriorate in recent years?<\/strong> European companies often complain about the unequal competitive conditions when compared to domestic companies and an opaque regulatory environment in China. Do you see a positive development in this respect? If so, in what way?<\/strong> What will China\u2019s President Xi Jinping\u2019s third term mean for Europe and Germany \u2013 and for global trade? What approach should we take in [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_blurb title=”Most read” _builder_version=”4.16″ header_font=”|||on|||||” header_text_color=”#ffffff” header_font_size=”16px” text_orientation=”center” custom_margin=”||20px||false|false” custom_margin_tablet=”” custom_margin_phone=”25px||||false|false” custom_margin_last_edited=”on|phone” custom_css_blurb_title=”display: inline-block!important;||background: #002754!important;||padding: 5px 13px 3px 13px!important;||position: relative!important;” border_width_bottom=”1px” border_color_bottom=”#002754″ global_colors_info=”{}” header_text_color__hover_enabled=”on|desktop” header_text_color__hover=”rgba(255,255,255,0.71)”][\/et_pb_blurb][et_pb_sidebar area=”et_pb_widget_area_1″ _builder_version=”4.17.4″ custom_margin=”||0px|||” custom_padding=”||0px|||” border_color_right=”RGBA(255,255,255,0)” global_colors_info=”{}”][\/et_pb_sidebar][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/Master_APR_Peter-Kauschke500px.png” alt=”Mikkel E. Andersen, Gesch\u00e4ftsf\u00fchrer der EUROGATE Container Terminals” title_text=”Master_APR_Peter-Kauschke500px” align=”center” _builder_version=”4.19.4″ _module_preset=”default” custom_margin=”100px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.19.4″ text_text_color=”#003a7c” text_orientation=”center” global_colors_info=”{}”]<\/p>\n Peter Kauschke, Director Transport, Logistics & Mobility at PwC[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.4″ background_image=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/2022-09-23_globalerKlimastreik_-c-Karol-Roller_4C.jpg” parallax=”on” custom_margin=”||0px||false|false” custom_padding=”325px||325px||false|false” global_colors_info=”{}”][et_pb_row _builder_version=”4.16″ global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ global_colors_info=”{}”][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”35px||31px|||” global_colors_info=”{}”][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.17.6″ custom_margin=”-15px||||false|false” custom_padding=”0px|||0px||” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ text_font=”roboto-regular||||||||” text_text_color=”#003a7c” custom_margin=”||0px||false|false” custom_margin_tablet=”||15px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”]As depicted here during the Global Climate Strike 2022 in Berlin, Fridays for Future is calling for the goals reached at the Paris Agreement to be adhered to and for greenhouse emissions to be reduced as fast as possible.[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ text_font=”roboto-regular||||||||” text_text_color=”#003a7c” custom_margin=”||0px||false|false” custom_margin_tablet=”||15px||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” global_colors_info=”{}”]Credits: Karol Roller, Fridays for future, istockphoto\/italianestro[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”2_3,1_3″ _builder_version=”4.16″ custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_column type=”2_3″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ global_colors_info=”{}”]\u201cUnilateral and protectionist action won\u2019t solve any problems,\u201d clarified the VW spokesperson, given the impact of the current global situation and Russia\u2019s war of aggression in Ukraine. \u201cFree, fair and international trade based on rules is the basis for prosperity, employment and growth worldwide.\u201d Irrespective of the development of the global flow of goods, Volkswagen is already undergoing the biggest transformation in its corporate history with its \u201cNew Auto\u201d group strategy, the spokesperson added. \u201cWe have a clear roadmap until 2030 and intend to develop into a sustainable, software-oriented mobility provider,\u201d they continued. In other words, over the next few years, the group intends to transform its core automotive business. This includes, among other things, more than 30 additional fully electric models as well as the expansion of battery technology and autonomous driving.<\/p>\n For the climate change strike movement Fridays for Future, our society is at a point where we are radically feeling the consequences of our past political and economic actions, for example through the multitude of current crises. \u201cIn order to avoid ecological and social crises and to achieve a truly just society, we should alter how our society is structured and how we value people and nature,\u201d said Darya Sotoodeh, Fridays for Future spokeswoman. She adds that this is not about globalisation in general, but about placing more value on the planet\u2019s natural resources and human life. \u201cManufacturing and trade must adapt to this. In practical terms, this means, for example, that every human being enjoys a certain level of acceptance without having to prove themselves or be economically productive. Only then can the massive exploitation of people and nature that\u2019s currently taking place in our world end,\u201d she remarked.<\/p>\n In this context, she sees networking on a global level \u2013 whether for trade or another form of exchange \u2013 as a good thing generally. However, this should ideally be done out of mutual interest and on an equal footing, and not out of the motivation to maximise profits or due to the fear of losing out in the global competition. \u201cGlobal trade as it is at present is driven precisely by these aspects. In the past, Europe laid a decisive foundation stone for this economic system, which China is now following. Of course, Germany can\u2019t escape this influence completely. However, it\u2019s important not to support human rights violations in any way and, if possible, not to become heavily economically dependent on other states,\u201d added Sotoodeh. \u201cWe need socio-ecological transformation,\u201d she suggested. \u201cA tangible start might be, for example, a circular economy or consistent supply chain laws.\u201d (bre)<\/em>[\/et_pb_text][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/Erde.jpg” title_text=”Erde” _builder_version=”4.19.4″ _module_preset=”default” width=”50%” module_alignment=”center” custom_margin=”||15px||false|false” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_3″ module_class=”dtb-sticky” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_image src=”https:\/\/www.logistics-pilot.com\/wp-content\/uploads\/2021\/05\/Master_APR_Darya-Sotoodeh500px.png” alt=”Mikkel E. Andersen, Gesch\u00e4ftsf\u00fchrer der EUROGATE Container Terminals” title_text=”Master_APR_Darya-Sotoodeh500px” align=”center” _builder_version=”4.19.4″ _module_preset=”default” custom_margin=”||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.19.4″ text_text_color=”#003a7c” text_orientation=”center” global_colors_info=”{}”]<\/p>\n Darya Sotoodeh, Fridays for Future spokeswoman[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ prev_background_color=”#ffffff” _builder_version=”4.19.4″ background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”rgba(0,58,124,0.13) 0%|#ffffff 100%” background_color_gradient_start=”rgba(0,58,124,0.13)” background_color_gradient_end=”#ffffff” custom_padding=”0px||0px|||” top_divider_style=”waves2″ top_divider_height=”50px” global_colors_info=”{}”][\/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" If you see and hear the rumblings in the world today, you might be forgiven for feeling that many places are already bidding globalisation a loud farewell. How realistic is this, though, and how far should Germany detach itself from China or other trading powers as all this unfolds?<\/p>\n","protected":false},"author":10,"featured_media":61722,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[54],"tags":[],"class_list":["post-61948","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-main-topic-en"],"yoast_head":"\n
EU-China trade is below its potential. EU exports to China are relatively small, given the size of the latter\u2019s economy. Eurostat data highlights that during the first half of 2022, the EU exported just 24% more to China than it did to Switzerland in value terms, despite China\u2019s economy being 22 times larger. EU-China trade is also unbalanced, with the EU currently importing roughly three times more goods from China than it exports to the country. Limited progress has been made on both these fronts in recent years. Indeed, the imbalance has improved only over the past year.<\/p>\n
The answer varies depending on the industry in question. Segments of China\u2019s economy continue to open and are increasingly well-regulated, with restrictions on foreign investment loosening in recent years. At the same time, strategic industries remain fully open only to state-owned enterprises (SOEs). In such sectors, SOEs continue to receive preferential treatment \u2014 unequal access to financing, licences and public procurement, and the ability to influence policy \u2014 and are protected from market competition to the detriment of the private sector.<\/p>\n
\n<\/strong>
With the full line-up of officials appointed at the 20th Party Congress for President Xi\u2019s third term not due to come to office until March 2023, it is not yet possible to fully ascertain what the new administration\u2019s stance on key issues will be. Nevertheless, it is expected that a stress on security and self-reliance will continue to be seen as imperative. One positive may be China\u2019s changing approach towards COVID-19. As out-lined by the Chamber\u2019s Position Paper 2022\/2023, China\u2019s strict adherence to its zero-COVID policy had not only negatively impacted its economy, but also global trade and supply chains. There has been a paradigm shift in China\u2019s approach to COVID-19 in recent weeks, with China now beginning to ease its stringent COVID-19 restrictions. If this transition is successfully managed, then this could help boost confidence in the Chinese market and help alleviate some of the headwinds facing global trade, although this will be a difficult task. The ability for key stakeholders in both Europe and China to finally meet in person again will be very helpful.<\/p>\n
\nthe future to bring Europe and China closer together?<\/strong>
With EU-China tensions currently high, it is vital that European and Chinese leaders have the chance to meet face-to-face to discuss their relationship. In this regard, the recent visits to China by Scholz and Michel are positive factors. However, more of the same will be required. It is also important that both sides continue to seek cooperation in areas where it would be of mutual benefit. Strengthening international efforts to tackle climate change stands out as the most obvious opportunity here (bre)<\/em><\/p>\n\u201cThere will be a shift towards reglobalisation in the sense of reform and renewal.\u201d<\/h3>\n
\u201cWe are radically feeling the consequences\u201d<\/h2>\n
\u201cEurope has cast the crucial first stone for this economic system, which China is now following.\u201d<\/h3>\n