Southern Finance 南方财经全媒体’s Post

"At present, the trade relations between China and the EU have a lot of ‘hard bones’. For example, the trade imbalance between the EU and China is very difficult for Europe. It’s been an explosion of Chinese exports into Europe, which has given consumers a good opportunity, but it’s been a challenge for European industry.” Adam Dunnett, the Secretary General at the European Union Chamber of Commerce in China, told us during the Global Trade and Investment Promotion Summit 2024 on May 13. Adam Dunnett has been closely monitoring China's efforts to further open up. He noted that China has made tangible progress in expanding and opening up by continuously revising the negative lists for foreign investment and eliminating or easing restrictions on foreign equity ownership. "So we are clear that the Chinese market is still attractive, but it is important that companies that make an investment here are able to see a return on their investment and get the clarity that they need to assure their stakeholders back home that this is the right place to be," added Adam Dunnet. Read:https://lnkd.in/eGBs9MdQ

Doug Bandow, Senior Fellow at the Cato Institute, highlighted at the 10th China and Globalization Forum that the obstacles encountered by globalization include protectionism and economic nationalism. Economic priorities are taking a back seat to security considerations, resulting in shifts in supply chains driven by fears of foreign dominance in various industries. This has escalated the push for decoupling and supply chain disruptions. Additionally, economic sanctions targeting the regulation of industries and technologies are exerting an influence on the market.   Saroja Sirisena, Former Sri Lankan High Commissioner to the UK, said that “We must have a common understanding of rules and learn how to better manage this multipolar world. A new international order is necessary for effective governance; otherwise, we cannot maintain high productivity. Additionally, we must consider that all countries should be equal under a rules-based international order.” Center for China and Globalization Read: https://lnkd.in/gzbyGGFi

Hard Competition Between Europe and Asia Διάβασε ελληνικά εδώ: https://lnkd.in/dSpdgw_W China continues to strengthen its economic cooperation with members of the Asia-Pacific Economic Cooperation (APEC), confirming the strategic importance of the region in the global economic landscape. In 2023, China’s trade volume with other APEC members reached $3.5 trillion, representing 59% of the country’s total trade volume. Additionally, nine out of China’s ten largest trading partners are APEC members, highlighting the organization’s critical role in shaping the country’s trade flows. At the same time, the APEC region plays a vital role in attracting and allocating investments. In 2023, 81.8% of foreign investments in China came from APEC members, while 80.2% of Chinese outbound direct investment (FDI) also targeted these countries. These figures underscore the strong economic interconnection that has developed in the Asia-Pacific region and its decisive influence on China’s economic growth. The deepening of China’s relations with APEC poses both challenges and opportunities for Europe. The strengthening of China’s economic influence in the Asia-Pacific may reduce Europe’s significance as a trade and investment partner for China, as Chinese resources and strategies increasingly focus on the APEC region. Additionally, the dynamic growth in the Asia-Pacific enhances competition in markets that have traditionally been more accessible to European businesses. On the other hand, Europe can leverage closer cooperation with China through the Belt and Road Initiative (BRI), which links the Asia-Pacific region with Europe. Moreover, European businesses can utilize Chinese investments to penetrate APEC markets through joint initiatives. However, it is crucial to maintain robust monitoring mechanisms to ensure transparency and balance in trade relations. Greece, with its strategic geographic position and participation in the Belt and Road Initiative, is uniquely positioned to benefit from China’s outward orientation. The collaboration at the Port of Piraeus is a prime example of the influence of Chinese investments, strengthening Greece’s role as a hub connecting Europe and Asia. However, China’s increasing focus on APEC markets may lead to a reduction in Chinese investments in Europe, limiting future opportunities for the development of projects such as those in infrastructure or energy. To address this challenge, Greece must strengthen its bilateral relations with China, leveraging its participation in the 17+1 Initiative and promoting the country as a gateway to Europe. China’s increased economic interconnection with APEC is reshaping the global economic balance, with significant consequences for Europe and Greece. Although these changes carry risks, they also present new opportunities for economic collaboration. https://lnkd.in/d7upwrp4

Chinese Foreign Direct Investment (FDI) in Mexico faces unique challenges, including regulatory hurdles, cultural differences, and geopolitical tensions. Despite these obstacles, Mexico remains an attractive destination due to its strategic location and trade agreements. Companies must navigate these complexities to capitalize on opportunities in the Mexican market. Kerry(Ye) Wang's recent article discusses this in more detail. Braumiller Law Group offers expert guidance to help businesses overcome these challenges and succeed in their international trade ventures.

China’s Overcapacity and Economic Malaise   #China’s recent economic woes have made headlines covering everything from #realestate to #debt, but Janet Yellen’s recent visit to China and her focus on China’s overcapacity and its tie-in with tariffs has captured headlines.   I was delighted to be interviewed by Voice of America's Bo Gu on this latest development in Sino-#American rivalry and Industrial Policy.   China’s # export-oriented economy not only usually has an incentive to export, but even if there was an incentive to decrease exports, #Chinese State Owned Enterprises, local #government, and much of the over-leveraged private sector have every incentive to maintain full speed ahead.   The result? Two parallel problems: 1) A collective action problem (ironic given that Command Economies of many types argue they have few difficulties with collective action problems) and 2) A free rider problem with everyone hoping somebody else pulls back.   For more details, and how this is likely to end, please see my latest in Voice of America.   https://lnkd.in/eMG_Z32z

𝐄𝐘 𝐆𝐫𝐞𝐚𝐭𝐞𝐫 𝐂𝐡𝐢𝐧𝐚 𝐑𝐞𝐩𝐨𝐫𝐭 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬 𝐂𝐡𝐢𝐧𝐚'𝐬 𝐑𝐨𝐛𝐮𝐬𝐭 𝐎𝐮𝐭𝐛𝐨𝐮𝐧𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐆𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐇𝟏 𝟐𝟎𝟐𝟒 In its latest report, “Overview of China Outbound Investment for the First Half of 2024,” EY Greater China revealed significant developments in China's outward foreign direct investment (ODI). Despite global economic uncertainties, China's overall ODI reached a remarkable US$85.3 billion, marking a 13.2% year-on-year (YOY) increase. This surge underscores the country's ongoing efforts to enhance its global presence and influence. Some of the key highlights: ✔ growing preference among Chinese enterprises for greenfield investments, particularly in sectors such as the new energy vehicle industry chain, infrastructure (including digital infrastructure), and healthcare. ✔ Chinese companies announced 206 overseas M&A deals in the first half of 2024, with a total value of US$13.1 billion. These figures reflect a targeted approach to overseas expansion, focusing on quality and strategic fit rather than sheer volume. ✔ Impressive performance of Chinese enterprises in foreign contracted projects. The value of new contracts signed reached a record high of US$115.54 billion, a 22% YOY increase. ✔ Breaking down the investment figures further, non-financial outward direct investment amounted to US$72.62 billion, up 16.6% YOY. Investments in Belt and Road Initiative (BRI) countries saw a 9.2% YOY increase, totaling US$15.46 billion. These numbers reflect China's sustained commitment to its strategic partners under the BRI framework. As Chinese enterprises continue to expand abroad, the focus has shifted to enhancing quality and efficiency. The report suggests that in the future, success in overseas markets will increasingly depend on Chinese companies' ability to enhance core competitiveness and leverage innovation advantages. See below to get the full report 👇🏻 #COIN #ChinaOverseasInvestmentNetwork #goingglobal Loletta Chow Qinghua XU PIONCHON Yi Sun Zhuoqun Wang Liangyu Wu

Current Momentum (Opportunities) of World Trade, courtesy from David Goldman: " China’s exports to developed markets (the US, Europe, Japan and Australia) have barely risen during the past few years, while exports to the Global South (including Russia, the Persian Gulf States, Central Asia, South Korea and Taiwan) have roughly doubled. That is an unprecedented shift in world trade patterns, and in some ways the most important economic event of the past decade. " Furthermore, " A large proportion of China’s exports to the Global South consists of digital and physical infrastructure. China dominates the buildout of broadband in Southeast Asia, Central Asia, Africa and Latin America, as well as the provision of physical infrastructure. A substantial part of China’s exports provides a foundation for future growth by raising the productivity of developing countries..." Excellent Observation!! read more @ https://lnkd.in/g7UXgQ6f

🎉 Amidst the evolving dynamics of Sino-US relations, an increasing number of Chinese companies are setting their sights on Europe, seeking investment opportunities. 💼 Among these, France shines as the preferred destination, boasting friendly trade policies, a colossal market, and a well-established economic framework. #ChinaEUInvestment #FranceInFocus https://lnkd.in/gVteAuMf

EY Greater China region releases the 11th issue of China Go Abroad – Cross the millennia-old trade route New perspectives on Arab investment Against the backdrop of a rapidly evolving international landscape, China-Arab relations have ushered in a new era. Both sides are emphasizing economic development based on mutual benefit and innovation, creating vast opportunities for collaboration. In the future, China and the League of Arab States (LAS) will continue to leverage platforms such as the China-Arab States Cooperation Forum and the China-Arab States Summit to strengthen their strategic partnership, accelerate cooperation in sectors such as finance, energy, infrastructure development and consumer goods, and work together to advance a more inclusive and equitable multilateral framework on a global scale. Read more: https://lnkd.in/gYXtk8nP   安永大中华区发布第十一期《中国走出去》系列报告﹕《跨越千年商道：阿拉伯投资新视角》。在国际格局日益复杂的背景下，中国和阿拉伯国家联盟关系迈向新纪元，双方聚焦经济发展，以互惠互利为核心，以创新驱动为动力，拓展了前所未有的合作空间。未来，中阿将继续依托“中阿合作论坛”及“中国—阿拉伯国家峰会”等平台，进一步提升战略伙伴关系，加快金融、能源、基础设施建设和消费品等领域合作，共同推进平等有序、普惠包容的多边新格局。阅读更多：https://lnkd.in/gP3sfv3f