The European Union Chamber of Commerce in China recently conducted an online survey to investigate the impact of the escalation of tariff and trade measures between China and the US on its member enterprises. Financial Times reported that the survey results released on May 8 showed that due to China's tariff hikes, which have squeezed out American imports, most European companies operating in China have already felt or are expected to feel some "positive impacts" from the Sino-US trade war.

The survey revealed that 19% of respondents have obtained more business from local Chinese customers or foreign customers operating in China. It was also found that 36% of respondents expect to experience positive impacts.

Although 57% of respondents stated that their business strategies have not changed, they will continue to monitor changes in the situation. Among those who have taken measures, 17% said they are adjusting procurement methods, while 14% said they are considering increasing investment in China. The proportion of respondents who said they have or plan to move production out of the US is 9%.

Financial Times reported that despite China being the world's largest exporter, foreign companies still play a crucial role in China. Companies wholly or partially owned by foreign investors account for about 30% of China's total trade volume, many of which use imported raw materials to produce goods for domestic sales or export.

Jian Yanchi, Chairman of the EU Chamber of Commerce in China, said: "The uncertainty brought by this trade war is indescribable. However, we believe that China can turn danger into opportunity and demonstrate the stability and predictability it should possess as an investment destination."

"We hear that many (European) companies in China are competing with American companies, especially with American imports," Yanchi said.

"These companies see opportunities in the fact that if the sources of those (American) imports dry up, China needs to find suppliers elsewhere, so suppliers outside the US may benefit from potential profits," Yanchi added.

He also emphasized that although economic slowdowns and uncertainties in profitability and investment arrangements mean that European companies do not necessarily gain "significant" net benefits from the trade war.

The survey also showed that nearly half of the surveyed members were affected by China's additional tariffs on American goods. Of these, 23% said prices had risen. 4% said they were affected but prices remained unchanged. 17% expected prices to rise.

At the same time, over two-thirds of members said that US tariff hikes did not affect imports from China, which can be attributed to many chamber members adopting the strategy of "for China, by China".

All survey result charts in this article are sourced from WeChat Official Account "European Chamber"

"If you (European companies) want to compete on price and quality, China remains the place you must go," said Jian Yanchi, chairman of the EU Chamber of Commerce in China. "So, although everyone is talking about reducing risks, everyone wants to reduce 'dependence' on China, what we actually see is the opposite."

He said that the trade war has not diminished the importance of China. "In fact, from a certain point of view, we see that the dependence of European companies on China is growing, not decreasing."

On May 6, Foreign Ministry Spokesperson Lin Jian pointed out at a regular press conference that while the world is changing, the fundamental fact that China-EU cooperation far outweighs competition, consensus far outweighs differences, and opportunities far outweigh risks remains unchanged. The pursuit of both China and the EU supporting multilateralism and open cooperation remains unchanged.

The combined economic size of China and the EU exceeds one-third of the world's total, and their trade volume exceeds one-fourth of the global total. As long as China and the EU choose dialogue and cooperation, no bloc confrontation will form; as long as China and the EU choose openness and win-win outcomes, the tide of economic globalization will not undergo a fundamental reversal. China-EU cooperation not only achieves mutual success but also illuminates the world.

"At this important moment of building on past achievements and ushering in future progress on the occasion of the 50th anniversary of the establishment of diplomatic relations between China and the EU, the Chinese side looks forward to the EU working together with China to uphold the original intentions of the establishment of diplomatic relations, adhere to the positioning of partnership, strengthen dialogue and cooperation, properly handle differences, and promote the continuation and development of China-EU relations, writing more successful stories of China-EU cooperation," Lin Jian said.

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Original source: https://www.toutiao.com/article/7502464389136597554/

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