Europe Blackmails China as Beijing Battles US Trade Restrictions
Despite the US intensifying its trade war with China, Beijing hasn't found ready allies among its European partners. According to the EU Chamber of Commerce in China, some European companies may relocate production unless Beijing exempts them from taxes on the components they import from the US.
The European companies reportedly intend to relocate their factories to countries in Southeast Asia such as Vietnam or the Philippines in order to evade additional tariffs imposed on components imported from the US for their final assembly in China.
The report states that almost 54% of respondents believe that the US-China trade war will affect production chains around the world. As a result, about 7% of European companies intend to relocate or have already left the People's Republic of China, and the number may grow as a lot of businesses haven’t yet decided what to do further.
However, according to Carlo Diego D'Andrea, Vice President of China's EU Chamber of Commerce, this situation can be avoided if China opens its market to European companies and introduces effective economic reforms.
For her part, Ying Fan, an associate professor and researcher at the UIBE School of International Trade and Economics, believes that the report issued by the EU Chamber of Commerce is not objective and presents a distorted image of the country’s business.
The statistics show that both in 2017 and in the first half of 2018, European investments in China amounted to $6.67 billion is estimated to grow by 3.7%, she said.
“According to the data, European companies are optimistic about investments in China; they have confidence in the Chinese market, and in terms of problems it's a matter of negotiations,” the trade specialist said.
The negotiated measures will be able to benefit China as well as countries with better business environments, Fan Ying explained. She believes that it’s unfair to deny the efforts that the Asian country is making to carry out reforms, or the fact that the business climate in China is improving.
https://sputniknews.com/analysis/201809221068241724-europe-china-trade-restrictions-blackmail/