Latest news with #EU-China
Fashion United
3 hours ago
- Business
- Fashion United
Retail insolvency holds steady, for now, warns RSM UK
Retail sector insolvencies in the UK remained broadly stable in April, according to new figures released today, but the outlook is increasingly clouded by a convergence of macroeconomic and geopolitical headwinds. The latest company insolvency statistics show a modest 3 per cent rise in retail trade insolvencies from March to April 2025, reaching 165 cases, though still 10 per cent below the same month last year. Over a 12-month period, insolvencies fell 15 per cent, from 2,212 in the year to April 2024 to 1,889 in the year to April 2025 — a sign that, despite tightening margins and reduced discretionary spending, much of the industry is managing to stay afloat. Gordon Thomson, restructuring partner at RSM UK, noted: 'These latest figures show a marginal uptick month on month, but figures overall indicate that retail distress is holding steady. This is encouraging, and further evidence that most retailers are continuing to show operational resilience in a challenging trading environment. But looking ahead, the picture isn't looking as rosy as some might hope.' Indeed, analysts and retail operators alike are bracing for potential disruption. A 'dismal' set of April retail sales figures, compounded by persistent inflationary pressure, higher household bills and broader global instability, from ongoing EU-China tariff tensions to volatility in key emerging markets, suggest turbulence may not be far off. Longer-term risks are mounting, with upcoming increases to business rates, tax adjustments, and additional compliance burdens likely to put further pressure on the high street. Yet amid the caution, there are some silver linings: consumer confidence has remained steady into early summer 2025, and retailers are quietly hopeful that sustained warm weather and a gradual easing of interest rates may offer a much-needed lift as the year progresses.
Euronews
8 hours ago
- Automotive
- Euronews
Could China's rare earth pivot ease strain on the automotive sector?
China has approved a number of rare earth export licences, a move that could provide modest relief to global manufacturers struggling with supply disruptions. But with export volumes still sharply down and no transparency on which firms benefit, Europe's automotive industry remains vulnerable to further disruption. At a press conference on Thursday, China's commerce ministry confirmed it had approved 'a certain number' of export licence applications for rare earths and magnets. These minerals are used in an array of high-tech products such as smartphones and jet engines. Rare earths such as neodymium, dysprosium and terbium are indispensable for producing lightweight, high-efficiency motors in electric and hybrid vehicles. China's announcement follows months of tension sparked by Beijing's decision in April to impose new export controls on seven rare earth elements and related products — just days after Washington introduced steep tariffs on Chinese goods. According to commerce ministry spokesperson He Yadong, China will 'continue to strengthen the review and approval' of licence applications and remains 'willing to enhance communication and dialogue' on export controls. The updated tone from Beijing also arrives just weeks before a major EU-China summit set for 24 to 25 July in Beijing, commemorating 50 years of diplomatic relations. Chinese customs data shows the stark impact of the restrictions. Exports of rare earth magnets plunged 74% in May compared to a year earlier, the steepest drop in over a decade. Shipments to the United States fell by 93%, according to a Wall Street Journal analysis. Total export volumes for May stood at just 1.2 million kilograms, the lowest since the start of the COVID-19 pandemic in early 2020. Earlier April exports also dropped by 45% year-on-year. JL Mag Rare-Earth, a major Chinese magnet supplier to Tesla, Bosch and General Motor, said last week that it had begun receiving licences for shipments to the US, Europe and Southeast Asia. Since April, hundreds of export licence applications have been submitted to Chinese authorities, but only about one-quarter have reportedly been approved. Some firms have encountered requests to disclose IP-sensitive information, while others have faced outright rejections based on unclear procedural grounds. ING economist Rico Luman indicated that with 'nearly 70% of global rare earth production and more than 90% of processing taking place in China, the world remains heavily reliant' on the country. Though rare earths are not geologically scarce — cerium, for instance, is more abundant than copper — their extraction is costly, and mineable concentrations are rare. "It's not a question of scarcity, but of concentration," Luman added. China also supplies more than 90% of the world's demand for rare earth permanent magnets, frequently used in electric motors and wind turbines. Without access to these materials, the European automotive supply chain risks paralysis. The automotive sector relies heavily on rare earth magnets for electric motors, power steering, sensors and other components used in both combustion and electric vehicles. 'China's export restrictions are already shutting down production in Europe's supplier sector,' Benjamin Krieger, Secretary General of CLEPA, warned earlier this spring. His call for 'transparent, proportionate' licensing remains relevant, even as some licences begin to clear. The European Chamber of Commerce in China confirmed that while some progress has been made, challenges persist. 'The situation is improving, although the percentage of cleared licences does vary. Additionally, even once the licence is given, delays can still be seen in customs clearances,' said Adam Dunnett, the Chamber's secretary general. Beijing's latest move to ease export restrictions on key components for the automotive industry offers only limited relief to a sector under strain. The European automotive industry, already grappling with competition from lower-cost Chinese electric vehicles, remains vulnerable to material shortages, delays and discretionary actions from Beijing — thereby reinforcing China's leverage in global trade negotiations. The second season of My Wildest Prediction has come to an end. Over the last eight months, we have delved into the business world through the words of entrepreneurs, researchers, futurists and experts from around the globe. Our goal has been to understand the challenges facing our economy and society, exploring how they affect our lives now and in the years to come. My Wildest Prediction is a podcast series from Euronews Business where we dare to imagine the future with business and tech visionaries. Among other topics, we discussed work. Some guests, like bestselling author Bruce Daisley, painted a pessimistic picture, predicting that 'work will get worse before it gets better'. Others, like futurist Dom Price, offered a more radical point of view, arguing that we will abandon the productivity myth — the idea that constantly working is the key to success. Overall, our guests agreed that work will become increasingly mobile, with entrepreneur Karoli Hindriks arguing that 'passports will be obsolete' and marketing expert Rory Sutherland saying that people will adopt a nomadic lifestyle. We also explored the future of our cities and our relationship with the environment. Urbanist Greg Clark predicted that by 2080, there will be more than 10 billion people on Earth, with 90% living in cities. Additionally, explorer Bertrand Piccard forecast that hydrogen planes will fly commercially by 2035. And of course, artificial intelligence (AI) was extensively discussed in our podcast and remained a polarising topic. Human resources expert Patty McCord believes 'AI will not be the big scary thing we think', while others like professor Scott Galloway predicted that AI will fuel US domestic terrorism. This is just a glimpse of the predictions shared during our season. Watch the wrap-up and listen to the episodes on YouTube or your favourite audio platforms.
New Straits Times
12 hours ago
- Business
- New Straits Times
EU bars Chinese firms from most medical device tenders
BRUSSELS: The European Union will bar Chinese companies from participating in EU public tenders for medical devices worth €60 billion or more (US$68.90 billion) per year after concluding that EU companies are not given fair access in China. The measure announced by the European Commission on Friday is the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access. The new restrictions are likely to increase tensions with Beijing, already inflamed by EU tariffs on China-built electric vehicles, Chinese measures against EU brandy, and curbs on exports of rare earths that the EU wants resolved by an EU-China summit in July. The Commission said on Friday that it would exclude Chinese companies from EU government purchases above €5 million. An EU official said, guided by figures from Medtech Europe, the EU medical technology market was worth some €150 billion in 2023, with public procurement accounting for a 70 per cent share. Contracts of over €5 million were only four per cent of tenders, but made up some 60 per cent by value, the official said. Successful bids will have to ensure they include no more than 50 per cent of medical devices from China. If there are no alternative suppliers, the exclusion will not apply. EU members backed the plan earlier this month. The Commission has previously said it found "clear evidence" that China favoured Chinese devices for hospitals and that its tender conditions led to abnormally low bids that profit-oriented companies could not offer. A Commission official said the ban would cover medical equipment including imaging equipment, artificial body parts and medical clothing. China's commerce ministry has previously described the proposed EU measures as "protectionist", urging the EU to be fair and transparent and for both sides to resolve differences through cooperation and dialogue. The Commission said China had not proposed any corrective action to remedy the situation, but an agreement was still possible.
Time of India
12 hours ago
- Business
- Time of India
EU bars Chinese firms from most medical device tenders
The European Union will bar Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros or more ($68.9 billion) per year after concluding that EU companies are not given fair access in China. The measure announced by the European Commission on Friday is the first under the EU's International Procurement Instrument , which entered into force in 2022 and is designed to ensure reciprocal market access. The new restrictions are likely to increase tensions with Beijing inflamed by EU tariffs on China-built electric vehicles, Chinese measures against EU brandy and curbs on exports of rare earths that the EU wants resolved by an EU-China summit in July. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Air conditioners without external unit. (click to see prices) Air Condition | Search Ads Search Now The Commission said on Friday that it would exclude Chinese companies from EU government purchases above five million euros. An EU official said, guided by figures of Medtech Europe, the EU medical technology market was worth some 150 billion euros in 2023, with public procurement accounting for a 70% share. Contracts of over 5 million euros were only 4% of tenders, but made up some 60% by value, the official said. Live Events Successful bids will have to ensure they include no more than 50% of medical devices from China. If there are no alternative suppliers, the exclusion will not apply. EU members backed the plan earlier this month. The Commission has previously said it found "clear evidence" that China favoured Chinese devices for hospitals and its tender conditions led to abnormally low bids that profit-oriented companies could not offer. A Commission official said the ban would cover medical equipment including imaging equipment, artificial body parts and medical clothing. China's commerce ministry has previously described the proposed EU measures as "protectionist", urging the EU to be fair and transparent and for both sides to resolve differences through cooperation and dialogue. The Commission said China had not proposed any corrective action to remedy the situation, but an agreement was still possible.
Spectator
12 hours ago
- Business
- Spectator
Has Ursula von der Leyen seen the light on China?
Coming from an American politician, the accusations would have been unsurprising. Beijing is unwilling to 'live within the constraints of the rules-based international system' and its trade policy is one of 'distortion with intent'. It splashes subsidies with abandon, undercuts intellectual property protections, and as for China's membership of the World Trade Organisation (WTO), that was probably a mistake too. It is bold of von der Leyen to raise the WTO, and it will be intriguing to see how she is greeted at the EU-China leaders' summit Yet this tirade came not from an acolyte of Donald Trump, but from Ursula von der Leyen, the president of the European Commission during this week's summit of G7 countries in Kananaskis, Alberta. 'Donald is right,' she said during a roundtable. Could there have been something in that Rocky Mountain water? Or was this all a devilish ploy to curry favour with Trump and thereby secure a favourable trade deal with the US? After all, it will not have gone unnoticed in Brussels that the US-UK trade pact contained security and other provisions clearly aimed at excluding China from sensitive supply chains and cutting edge tech. But it wasn't only her words. The EU has also scrapped a key economic meeting with Beijing, which was to have been held ahead of an EU-China leaders' summit in the Chinese capital next month, citing a lack of progress on numerous trade disputes. It recently restricted Chinese medical device manufacturers from access to the EU's vast public procurement market, launched an anti-dumping investigation into Chinese tires and wind turbines and refused Beijing's demands to remove tariffs on Chinese electric vehicles. The truth is that Brussels has lost patience with China, and the famous EU fudge is (at least for now) being jettisoned for a far more robust approach to what EU officials see as China's serial rule-breaking. Beijing's recent restrictions on the export of critical minerals, which threatened to bring the continent's motor industry to its knees, have been a painful reminder of the EU's dangerous dependencies and Beijing's willingness to weaponise its supply chains. The EU's trade investigations are being carried out under a new Foreign Subsidies Regulation, which unusually for the rather pedestrian EU bureaucracy is fast, focused and – so far – exceedingly effective. If a foreign-owned company bidding for a contract or involved in a takeover is suspected of unfair subsidies, the EU can demand detailed business information. Last year, the Dutch and Polish offices of Nuctech, a Chinese security equipment company, were raided by EU competition regulators, acting under the new powers. A Chinese railway equipment manufacturer pulled out of bidding for a large contract in Bulgaria, preferring not to hand over data that would almost certainly have revealed wads of subsidies. In spite of these growing tensions, Beijing believed it could use Trump's tariff war to prize away Brussels from Washington – a long-standing goal of Chinese policy. To this end, in late April it announced it was lifting sanctions it had imposed on members of the European Parliament in retaliation for EU sanctions on Chinese entities accused of human rights abuses in Xinjiang. President Xi Jinping also launched a charm offensive, calling for unity in the face of coercion and presenting himself as an upholder of free trade. This has backfired, being seen widely in Brussels as laughable hypocrisy. Looming large over EU relations with China is Beijing's support for Vladmir Putin, which is felt much more profoundly in European capitals than in Washington. But Brussels has also been willing to call out China on a range of security issues. These include the blacklisting of Huawei lobbyists earlier this year following allegations of bribery linked to the tech company's activities in Brussels. Germany has accused China of being behind a cyberattack on the federal cartography agency for espionage purposes, and the Belgian intelligence agencies have investigated Alibaba for 'possible spying and/or interference activities' at the cargo airport in Liège. It should not be forgotten that the term 'de-risking' in relation to China was first popularised by von der Leyen. She introduced it in a March 2023 speech to the Berlin-based Mercator Institute for China Studies. She said it meant being clear-eyed about China's growing economic and security ambitions. 'It also means taking a critical look at our own resilience and dependencies,' she said. 'De-risking' was soon adopted in other Western capitals, replacing the more clunky 'decoupling'. De-risking sounded more nuanced – a more orderly form of decoupling. It was vague, slightly murky, and open to interpretation. But therein lay its strength. It could be dialled up or down according to the circumstances, a flexible tool, with which few could disagree. It seemed like plain common-sense, which is probably why it so irked Beijing. 'It is just another word game. It will not change the 'ostrich mentality' of some countries to escape from the real world,' snarled the Global Times, a state-owned tabloid, at the time. When von der Leyen travelled to Beijing with French President Emmanuel Macron a week after her speech, Macron was given the red carpet treatment while the EC president was largely cold-shouldered in what was interpreted as a calculated snub. During this week's G7 meeting, von der Leyen said: 'We strongly feel that the biggest challenges are not the trade between G7 partners. Rather, the sources of the biggest collective problem we have has its origins in the accession of China to the WTO in 2001'. China's membership of the WTO is widely seen as a high point of western delusion about China. Beijing promised to improve the rule of law, to protect intellectual property rights, cut import tariffs, give greater access to its market, liberalise controls on its exchange rate, scrap trade barriers and much more. Few of these ever happened, or where one barrier was removed, another was erected. China has clung to the privileges of a 'developing' country. It has never provided a level playing field for foreign companies but was able to flood the world with its own cheap exports, while western companies flocked to outsource production and supply chains to Chinese factories, hollowing out manufacturing throughout the West. This led inextricably to the dependencies the West is decades later trying to unwind and has fuelled populist anger in developed economies. It is bold of von der Leyen to raise the WTO, and it will be intriguing to see how she is greeted at the EU-China leaders' summit, tentatively set for late next month to mark 50 years of bilateral relations. Few will be in celebratory mood, and Xi will probably concentrate on individual European leaders, believing he has greater influence with them than with the European Commission president. His main miscalculation has been to believe he can leverage the distrust of Trump to China's advantage, because while it is true that Trump is haemorrhaging trust, the grim truth for Xi is that Beijing never enjoyed much trust in the first place.
