Mikołaj Wozniak, Konrad Falkowski
1.10Chinese spy in Germany
On the first day of October, a fresh spy scandal broke out in Germany, with a Chinese spy in the lead role. In Leipzig a 38-year-old female was detained Suspected of spying on Chinese intelligence. According to the national Prosecutor's Office of Germany, Yaqi X., who was employed in a logistics company operating at Leipzig/Halle Airport from mid August 2023 to mid February 2024, is being detained. According to the findings prosecutors, the female provided Chinese peculiar services, including previously detained Jian G., information on flights, cargoes and passengers. These data mainly included transport data defence equipment and persons associated with German arms companies. The detention besides carried out searches at home and the workplace of the suspect. The investigation aims to find the degree of the data provided and the possible consequences for German national security.
4.10. Grand Finale – The EU accepts the customs proposal for Chinese electricity
After many months, finally, what was most feared by German Chancellor Olaf Scholz – associate States of the European Union accepted by voting on the proposal from the European Commission to impose countervailing duties on Chinese electrical cars. How right indicates Justyna Szczudlik from the Polish Institute of global Affairs managed to do so “against lobbying and pressure.” In her view, this is besides a breakthrough decision, due to the fact that the ‘electric vehicles’ decision is offensive due to the fact that it affects production and exports in China, which is why the Union is able to defend the indigenous manufacture of emission-free vehicles, which has not been achieved more than a decade ago in the photovoltaic panels industry.
The European Union is simply a block of countries in which it is frequently hard to have unanimity in decision-making, as each individual associate has its own peculiar interests, which are frequently higher than the interests of the full Union (which is understandable and hard to be surprised). Nor should this unanimity be expected in this case either. Reuters Agency performed a transparent overview of how individual countries voted. 10 associate States, i.e. Italy, France, Poland, the Netherlands, Ireland, Latvia, Lithuania, Estonia, Bulgaria and Denmark, favoured the introduction of duties. In turn, only 5 countries were opposed: Germany, Hungary, Malta, Slovenia and Slovakia. The largest part of the voters, as many as 12, decided to abstain, which, in the case of this vote, was yet included in the votes in favour. This group included the following countries: Belgium, Croatia, Czech Republic, Greece, Spain, Cyprus, Luxembourg, Austria, Portugal, Romania, Sweden and Finland. It is clear from the position that the European Union is divided and incapable to scope a coherent position on a substance as crucial as the future of the EU's electrical car market. France Burwell of the Atlantic Council notedthat both Ursula von der Leyen and China may consider themselves to any degree winners. In his view, the tariff vote is "a legitimate triumph by the Commission, but a political triumph (in a sense) for China", which is to be demonstrated by a advanced number of abstentions. In this way, it can be expected that Beijing will play harder and harder to break the already fragile unity of the EU, which can origin those who have now abstained to vote in line with the Chinese vision.
The Regulation of the European Commission, according to which the customs proposals voted on were to enter into force, had to be announced by 30 October (which became the day before that date, as further explained). However, according to the Communication on the European Commission's website, the imposition of duties is not intended to constitute the end of the consultations between Brussels and Beijing. On the contrary. It can be read that both the EU and the PRC are "still working hard to find an alternate solution that would should be full in line with WTO rules, as well as adequate to address the injurious subsidisation identified in the Commission investigation as well as possible monitoring and enforcement". But will there truly be specified an agreement? It seems to be a questionable scenario. A much more real option seems to be Beijing's retaliatory action, the beginnings of which were already visible in the erstwhile months erstwhile China began investigations against goods of European origin specified as brandy, pork and dairy.
At the same time as the results of the vote were announced, they besides took place odsay from China. The Ministry of Commerce of the PRC stated that ‘China powerfully opposes unfair, illegal and unjustified EU protectionist practices’ and ‘strongly opposes EU countervailing measures against Chinese electrical vehicles’. Nevertheless, despite criticism and opposition, China "notices the EU's political will to proceed addressing this issue through negotiations". Therefore, the PRC calls on the European Union to "really show its political will and return to the right way of commercial spawning by consultation". However, this does not change the fact that, in the last sentence, the ministry spokesperson stated that "China will besides take all measures to safe the interests of Chinese companies firmly".
8.10. China imposes duties on European brandy
On 8 October, Ministry of Trade of the People's Republic of China. published announcement No 42 that it was decided to introduce provisional anti-dumping measures together with 11 October of this year in the form of a charge on imported brandy originating in the EU. The Chinese tariff is expected to scope between 30.6% and 39%. As indicated in the Communication, the investigation into dumping was initiated on 5 January 2024 and the preliminary ruling was issued on 29 August (as we besides wrote in the August edition “ReviewIt is not known whether or not you are taking advantage of me. The investigation showed that dumping was actually taking place, but China refrained from introducing duties, which was to be a motion of good will and to any degree forced a akin motion on electrical vehicles to Brussels. However, no of this happened and China besides decided to step down.
Position of the Ministry confirmed besides his spokesman, who was asked about this situation and the state of another Chinese anti-subsidy investigations. He said that all investigations are based on both Chinese government and the planet Trade Organisation (WTO). He besides perfectly added that Beijing is planning "to introduce measures specified as an increase in tariffs on imported vehicles powered by high-speed fuel". At the very end, he gave a standard expression that can be detected by following the statements of Chinese officials: ‘China will take all essential measures to firmly defend the legitimate rights and interests of Chinese manufacture and companies.’
On the same day she appeared statement The European Commission on this subject. Namely, according to the EC, it straight undermines the validity of the Chinese investigation: “The abuse of trade defence for improper reasons constitutes a clear violation of WTO rules. The Commission will so powerfully challenge at WTO level the provisional anti-dumping measures announced by China on imports of brandy from the EU". Furthermore, the Commission expressed its willingness to aid European companies which would endure from the duties imposed, identifying them as ‘an unjustified decision by the Chinese government’. Like the Chinese in their statements, the EC has firmly stated that it will defend its interests: "The Commission will always stand firm and courageously on the side of EU producers, industry, open and fair trade and a level playing field around the world."
9.10. consequence of the PRC to the EU WTO complaint
On the day following the publication of the European Commission’s message on the transfer of the dispute over Chinese customs to European brandy to the planet Trade Organisation level, the Ombudsman of the Ministry of Trade of the PRC provided position Chin. In his first sentence, he made it clear that "Chinese anti-dumping measures against imported brandy originating in the EU are legitimate trade remedies". In contrast, it questioned the appropriateness of European duties on Chinese electrical cars, saying that "the EU anti-subsidy investigation of Chinese electrical vehicles was not based on manufacture conclusions". He added: "In fact, the applicable EU associate States and their industries have besides had serious reservations about this", and EU measures "are seriously devoid of the factual and legal basis, clearly violating WTO rules and actually constitute trade protectionism in the name of trade defence measures". Finally, he stated that China was an enemy of the abuse of trade remedies, and called on the European Union "to immediately correct its inappropriate practices and to jointly defend the overall economical and trade situation between China and the EU". Will the Union bow to this call? Very dubious.
12.10. China invites the EU to further consultations
A spokesperson for the Chinese Ministry of Trade, asked about the position of the consultation between the European Union and China on customs duties on Chinese electrical cars, statedthat, despite 8 rounds of talks starting on 20 September, advancement was seen, but inactive blocked by "significant differences between the 2 parties". And the consequence is that the dispute is not satisfactorily resolved for either party.
The Ministry's typical added that "China's message and sincerity in seeking solutions through dialog and consultation has not changed" and continued to invitation the EU to hold talks through dedicated method teams. China besides expected to find a "golden measure" and velocity up the consultation to "as shortly as possible scope the right solution".
The second question, closely related to the subject, addressed by 1 of the reporters at the address of the Ministry of Trade of China, was the question of the reports that the European Union was to have individual discussions with individual Chinese companies on price commitments. At the very beginning, the Ombudsman sought to emphasise Beijing's sincerity during talks with Brussels: "China has always held dialog and consultation with the European side with the top sincerity and goodwill." However, in direct relation to the question, he expressed his concern by saying that if the EU continues to do so, it would "shape the foundations and common assurance of negotiations, disrupt talks between the 2 parties and harm the advancement of the general negotiations process". The Ombudsman, on behalf of the Ministry and the People's Republic of China, concluded his threefold hopes: firstly, that the Union "will full show its sincerity", secondly, "will take seriously the main concerns of the industry" and thirdly, "as shortly as possible a solution acceptable to all parties will be achieved based on the current consultation".
14.10. The tour of Taiwan's erstwhile president in Europe
The first halt of the erstwhile Taiwanese president Tsai Ing-wen was the Czech Republic, where on October 14 participated in the 28th global Conference of Forum 2000 in Prague. This was her first visit since she resigned in May that year. According to Tsai on her Facebook page, the intent of the visit was to draw the attention of “friends of the Taiwanese people” to the request to take decisive action to defend democracy and freedom in the planet and to make relations between Taiwan and Europe. Tsai stressed that modern authoritarian regimes are seeking to extend their form of government to another states, for which they usage different methods, including information warfare, threats or even invasion itself. As an example, it pointed to Taiwan, which, as she said, was “standing on the front line of the attack”. She besides added that the latest manifestation is the announcement by the authorities of the People's Republic of China new military exercises close the island.
During the beginning of the conference, the erstwhile president of Taiwan was officially welcome by the president of the Czech Republic, Petra Pavla. However, an individual gathering with Tsai Ing-wen was not planned, as his office reported. On the same day, Tsai besides held meetings with the presidents of both chambers of the Czech Parliament.
The next phase of Tsai Ing-wen's journey was France, where October 16 She met with a group of current and erstwhile members of the French Parliament. Among another things, she held a gathering in the legislature of France with a group of senators led by Jean-Baptiste Lemoyne, the leader of a group of friends of Taiwan operating at the legislature of France. This was the first visit by the president of Taiwan to the advanced Chamber of Parliament of France since the 1996 direct presidential election.
During the meeting, Lemoyne stressed that both France and Taiwan are actively active in the Indo-Pacific region. He pointed out that the 2 countries had a common desire to keep strong ties based on common values and interests. According to Hao Pei-chih, a typical of Taiwan in France, Tsai's visit will importantly contribute to Strengthening relations between France and Taiwan, whose effects, as he said, are "can't wait". He besides added that Tsai's journey to Paris was kept secret due to concerns about possible "unnecessary interference".
The Tsai meetings were accompanied by National safety Council advisor Alex Huang and erstwhile Wang Mei-hua Minister of Economy. An crucial figure supporting the visit was besides Alain Richard, erstwhile Minister of Defence of France (1997–2002) and erstwhile president of the Franco-Taiwan relationship group. Alain Richard, before his legislature word ended, actively promote relations between France and Taiwan.
Last The destination of Tsai Ing-wen's journey across Europe was Brussels, where 1 of the Vice-Presidents of the European Parliament of Italy welcomed her on 17 October. In her honour, there was besides a reception organised by the Slovak Euro MP and the questor of the European Parliament Miriam Lexmann, in which participated around 50 members of the European Parliament. In her welcome speech, Lexmann expressed appreciation for Tsai's courage and determination to defend freedom in the face of increasing authoritarianism. She besides stressed that European countries have the right to deepen their relations with Taiwan and should not be restricted in this regard. In response, Tsai expressed Thank you. for the long-term support of the European Parliament to Taiwan. She besides called for global democracy to be shared Prevention An expansive policy of the People's Republic of China.
The Chinese authorities powerfully criticism Tsai Ing-wen journey to Europe. The Ministry of abroad Affairs of China, via spokesperson Mao Ning, expressed strong opposition to visits, accusing Taiwanese supporters of actions contrary to the rule of 1 China. Mao Ning She called Among another things, the Czech Republic and another countries to consistently respect the rule of 1 China and to respect the territorial sovereignty and integrity of the PRC. The spokesperson stressed that all forms of support for separatist forces seeking Taiwan's independence, as well as actions likely to harm bilateral relations With China, they're unacceptable. She besides called on the Taiwanese authorities to "stop seeking independency due to the fact that they are doomed to failure". She added that any manipulation political and abroad support efforts will prove fruitless.
16.10. Scholz and his criticism of EU duties on Chinese electrics
While you're at it Common Before the Bundestag on 16 October, German Chancellor Olaf Scholz addressed many topics affecting Germany and the European Union. He caught on the threads related primarily to the war in Ukraine, the escalation of the conflict in the mediate East, as well as the state of the German economy and the EU duties on Chinese electricity. In mention to the latter, he expressed his strong criticism. This speech took place before the next European leaders' gathering summit The European Council.
In the context of Union-China relations, read, that Germany is not the only 1 who is sceptical about the decision - as many as 17 associate States, as well as the directors of the automotive companies with which he was to hold talks. Scholz addressed the full Union with the following words: “My request is that we scope an agreement between China and the European Union”, which de facto it can be seen as a proposition that the president of the European Commission is not going to make specified a deal.
It is worth noting here that this is one more time the period erstwhile the German Chancellor expresses his opposition or the form of criticism of the European Commission's offensive action against China. In early October, 2 days before the announcement of the approval of the countervailing work proposal, Scholz statedthat the increase in trade will take place erstwhile "a larger number of partners from more countries". He so believes that in this case, "the negotiations with China on electrical vehicles must proceed and we must yet address areas where inexpensive Chinese imports harm our economy, for example steel".
It will not be fantasized to say that Scholz will not step down from his post. The same as the European Commission headed by Ursula von der Leyen. There is simply a conflict of interest in this area that will not be easy to resolve, and that will be essential if the Union is in a request to cement unity alternatively than further fragmentation.
23.10. Nuctech refers to the decision of the European Commission
On 23 October, Nuctech informed that the day before, it had lodged another appeal against the decision of the European Union court concerning refuse the application to temporarily suspend the European Commission's decision to carry out checks at the company. These checks were commissioned by the European Commission to measure the possible breach of EU law. The company initially sued the European Commission for prior raids on its offices in Poland and the Netherlands, arguing that there was no clear evidence of alleged usage of state subsidies. However, the Court of First Instance ruled that the European Commission has the right to analyse and to request information from all companies operating in the EU, whether controlled by a associate State or a 3rd country. In a statement, Nuctech declared his determination to defend his rights, while ensuring his willingness to cooperate with the European Commission. The company besides expressed hopes that the appeal process would lead to a fairer and more reasonable decision on the matter.
Since 2020 Nuctech has been located on black leaf Chinese technology companies considered a threat to national safety by the US. The company specializes in the production of body scanners and baggage utilized at airports and ports in more than 170 countries
23.10. Kaja Kallas about China
Recent candidate to the Secretary-General of NATO and came The advanced typical of the Union for abroad Affairs and safety Policy, Kaja Kallas, expressed her opinion on Russia and China in leaves to the European Parliament before the proceeding on its nomination.
She mentioned China respective times. Its precedence in its relations with China, as she said herself, will be to "protect the EU's geopolitical and economical security" with fruitful cooperation with another European Commission Commissioners. She besides pointed out that "the most pressing challenges here are China's support for Russia, as well as structural imbalances between the EU and China which arise from non-market policies and practices that make unfair competition and unequal playing conditions". This communicative perfectly fits the Ursula von der Leyen doctrine, which wants to make the European economy most independent from the Chinese (so-called de-risking). It is so not hard to foretell that Kallas will openly support the EC president in her Chinese efforts.
He can besides find further information that a crucial focus will be on detecting and combating hybrid threats, which include Kallas' sources besides (partly) of the People's Republic of China: "Only to defend ourselves against malicious external influences and threats can we guarantee that the EU will be a strong power in global matters. Entities specified as Russia, Iran, North Korea and partially China are seeking to arm the interdependence and exploit the openness of our societies against us. That's what we should be prepared for. From fast hazard analysis to the usage of existing instruments to their full potential, including a fresh horizontal hybrid threat sanction regime". The future EU advanced typical has brought together the countries now increasingly referred to as "bad axis" or the acronym "CRINK” presenting them as a visible threat to Europe. Although the word "partly" in relation to China may propose minimum levels of hope for cooperation with Beijing.
The opinion of Kallas echoed so much that the Chinese propaganda tube “Global Times” besides decided to take the level on the matter, or more specifically the opinion of Cui Hongiajn, prof. at the Beijing University of abroad Languages, said. He noticed First, that Kallas' comments reflect the "trend of following the US in terms of communicative and even politics". He further stated that Kallas had combined China with a bloc of states specified as Russia, Iran or North Korea, suggesting that China itself is hostile to Europe – and this is also, in his opinion, a sign of following Washington, which could further complicate relations on the Brussels-Pekin line: "If the EU continues to connect to the US, China-EU relations that have already experienced any undesirable turbulence, especially in the public environment, will likely have more problems in the future." At the end of his thought, Cui added that Kallas is not a typical of all the EU institutions, and even more so the individual associate States, so "the European perception of China should not be based solely on the rhetoric of any politicians".
25.10. Video conversation between Dombrovskis and Wang
On October 25, a video interview was held between EU Commissioner for Trade Valdis Dombrovskis and Chinese Minister for Trade Wang Wentao. The discussion concerned, of course, the issue of the countervailing duties adopted by the EU countries on Chinese electrical cars and negotiations on price obligations. Both sides took stock of 8 rounds of meetings and of what was not negotiated. Both confirmed their willingness to accomplish a satisfactory solution for both Brussels and Beijing. In addition, they agreed that further method meetings would be held soon.
According to reading from a gathering on the European Commission's website, Dombrovskis stressed that the WTO rules govern the anticipation of imposing price undertakings in an open manner for the various companies active in the investigation, which is why discussing with individual exporters outside negotiations with the Chinese Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCME) does not seem to contradict the WTO standards. Furthermore, he expressed his doubts as to the merits of the Chinese anti-dumping investigations against brandy, pork and dairy products of European origin.
Wang Wentao notedthat further negotiations related to price commitments should be based on "reconciliation with fundamental concerns" and "pragmatism and balance". Moreover, the Chinese are very keen to meet again in the framework of the method negotiations "and are happy to invitation the European squad to China as shortly as possible". However, in the context of Chinese investigations against European Wang goods, he continued to argue that all investigations were in line with WTO rules and national rules, which would “fully defend the legitimate rights and interests of all concerned”.
28.10. Visit of Finnish president Alexander Stubb to China
On 28-31 October, Finnish president Alexander Stubb visited State in the People's Republic of China, where he met with president Xi Jinping and another high-ranking representatives of the Chinese government. On the President's journey with His wife, First woman Suzanne Innes-Stubb, as well as key ministers, abroad Minister Elina Valtonen, Climate and Environment Minister Kai Mykkänen, and Minister of Agriculture and Forestry Sari Essayah. The delegation was complemented by representatives of the Finnish parliament, including Ville Skinnari and Sakari Puisto, and representatives of leading Finnish companies specified as Nokia, Vaisala, UPM and Oilon. It was Alexander Stubb's first visit to China since taking office as president of Finland, as well as the first visit of the Finnish head of state to China in 5 years. The erstwhile 1 took place in 2019 erstwhile China visited erstwhile president Sauli Niinistö.
During the visit signed Action Plan for the period 2025 to 2029, including cooperation in the areas of technology, health, food, education and tourism. A noticeable change in relation to the earlier agreements was the regulation of cooperation on Arctic issues, resulting from Finland's partnership with the US and Canada. another agreements included approval to export Finnish poultry to China and the announcement of cooperation between Finnish applied discipline universities and Tsinghua University.
During the Xi Jinping gathering stressedthat Finland was 1 of the first Western countries to establish diplomatic relations with the People's Republic of China and the first to sign an global trade agreement with it.
The talks besides afraid wars Russian-Ukrainian. Prior to his visit to China, president Stubb met with many European leaders and told Xi Jinping that North Korea's support for Russia was an escalation and provocation. Stubb besides stressed that Chinese relations with North Korea "are presently not comfortable" and warned that further support from the PRC to Russia could negatively affect relations with the European Union. “The more China support Russia is making relations with Europe more difficult, especially with the EU," said Stubb. The president of Finland besides returned Notethat "peace cannot be negotiated without Ukrainian participation". In addition to issues related to the war in Ukraine, talks besides covered the situation in the mediate East and the subject of the relation between the European Union and China.
During the visit of the president of Finland, the substance of a cargo vessel registered in Hong Kong, which may have been active in damage Balticconnector pipeline connecting Incoo, Finland, to Paldiska, Estonia. To Event occurred in 2023, most likely as a consequence of anchor damage, which caused costly, six months repair.
29.10. EU duties on Chinese electricity enter into force
European Commission 29 October issued Regulationaccording to which the anti-subsidy investigation is terminated from that date. The findings of the investigation clearly state that ‘the values chains for the production of BEV in China benefit from unfair subsidisation’ and this in turn poses a threat ‘in the form of economical injury to the Union producers of BEV’. Therefore, the definitive countervailing duties on imports of battery electrical cars (BEV) from China enter into force for a period of 5 years.
W press release However, the Commission's opinion can be read that the European side continues to be willing to consult the Chinese side "to find alternate and WTO-compliant solutions". Similarly, the Commission is inactive willing to negociate price commitments with individual exporters, which, here, should be stressed, is acceptable by both the European Union and the planet Trade Organisation.
The final value of the countervailing duties as shortly as they enter into force is as follows. The 3 companies, as was previously the case, had been distinguished and, according to the Commission, imposed appropriate countervailing duties: BYD – 17%, Geely – 18.8% and SAIC – 35.3%. another companies that have expressed their willingness to cooperate with the Commission will be subject to a tariff of 20.7%. In turn, those that did not cooperate in this way gotta number for duties that amount to 35.3%, as with SAIC. In addition, the US Tesla brand will be charged a 7.8% work following an individual investigation supported by a reasoned request. Provisional duties, introduced on 4 July this year, are terminated and will no longer be collected.
