For China to continue its robust and open economic interaction with the rest of the world is in everyone’s interest and hopefully the third plenum’s outcome can show signs of travel in that direction.
Signs of some of the headwinds China faces as it prepares for the third plenum were in evidence at the Dalian forum. There was a noticeable lack of Western engagement and this was unfortunate.
The World Economic Forum is a well-established and influential forum to tackle pressing key global issues and for those who stayed away, it is a missed opportunity. It seemed to me there were fewer international participants in Dalian this time. There were fewer of the usual big corporate executives we usually meet in Davos, Switzerland.
World Economic Forum founder and executive chairman Klaus Schwab (from left), China’s Premier Li Qiang, Poland’s President Andrzej Duda and Vietnam’s Prime Minister Pham Minh Chinh at the opening ceremony of the Annual Meeting of the New Champions in Dalian, in China’s northeastern Liaoning province, on June 25. Photo: AFP
As the European president of a joint Chinese and European business school, I know from experience how vital it is to create a neutral and credible communication channel between China and the outside world. More dialogue is needed in times of tension. China will always play a hugely important role in world affairs, tensions or not, so I hope any reservations about attending in future can be put to one side for the sake of constructive dialogue.
Meanwhile, China’s dispute over electric vehicles (EVs) with Europe has the potential to create more friction, and thus underlines the necessity of maximising people-to-people contact. Negotiations continue between China and the European Union over EV tariffs and these are likely to take several twists and turns before the final outcome. The picture is highly complex because it is closely intertwined with geopolitics.
For example, America’s decision to impose a 100 per cent tariff on Chinese EVs creates a gap in the US market and opens up opportunities for countries with closer relationships, such as Japan, which has the capability and ambitions in the EV sector. Honda is on the verge of opening an EV plant in Canada and this could signal the start of a trend for Japanese and other foreign EV makers to invest in production facilities in North America.
02:03
Chinese-made electric vehicles face additional EU import tariffs of up to 38%
Chinese-made electric vehicles face additional EU import tariffs of up to 38%
Due to the complexity of the issue, such an outcome looks challenging to achieve. Cars can be emotional products and this is a political time in Europe and North America. It is too easy for politicians to try to win votes by saying they are protecting manufacturing jobs – the influence of domestic politics cannot be underestimated.
Yet I do not believe this issue is quite so urgent since the number of Chinese EVs sold in Europe and North America is quite small. The impact is likely to be that more Chinese EV companies will decide to produce cars in Europe – and this is already happening with BYD’s factories opening in Hungary. What is happening today is a repetition of the 1980s when the Japanese were challenging the European and US car industry.
It would be timely for China’s third plenum to put out positive signs ahead of the US presidential election later this year, which could see Donald Trump return to the White House. Many describe the former president as an unpredictable character and in the event of his election victory, the US-China relationship is likely to suffer.
I fear that anti-China rhetoric during the election campaign will reach a crescendo in the coming months, creating friction. But this would be well anticipated by all sides so the impact is likely to be kept within reasonable limits. Elsewhere, as we can see, Europe is preparing for a possible Trump victory on several fronts.
The relative continuity that a victory for Joe Biden would bring is likely to be the preferred outcome for most European businesses and governments, as well as, one would imagine, much of the business world in general.
Dominque Turpin is European president at the China Europe International Business School
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
.jpg?itok=Qexy_wA0)