EU Tariffs on China Not a ‘Punishment’, Says German Economy Minister

Flags of European Union and China are pictured during the China-EU summit at the Great Hall of the People in Beijing, China, July 12, 2016. (Reuters)
Flags of European Union and China are pictured during the China-EU summit at the Great Hall of the People in Beijing, China, July 12, 2016. (Reuters)
TT

EU Tariffs on China Not a ‘Punishment’, Says German Economy Minister

Flags of European Union and China are pictured during the China-EU summit at the Great Hall of the People in Beijing, China, July 12, 2016. (Reuters)
Flags of European Union and China are pictured during the China-EU summit at the Great Hall of the People in Beijing, China, July 12, 2016. (Reuters)

Proposed European Union tariffs on Chinese goods are not a "punishment", Germany's Economy Minister Robert Habeck told Chinese officials in Beijing on Saturday.

Habeck's visit to China is the first by a senior European official since Brussels proposed hefty duties on imports of Chinese-made electric vehicles (EVs) to combat what the EU considers excessive subsidies.

China warned on Friday ahead of his arrival that escalating frictions with the EU over EVs could trigger a trade war.

"It is important to understand that these are not punitive tariffs," Habeck said in the first plenary session of a climate and transformation dialogue.

Countries such as the US, Brazil and Türkiye have used punitive tariffs, but not the EU, the economy minister said. "Europe does things differently."

Habeck said that for nine months, the European Commission had examined in great detail whether Chinese companies had benefited unfairly from subsidies.

Any countervailing duty measure that results from the EU review "is not a punishment", he said, adding that such measures are meant to compensate for the advantages granted to Chinese companies by Beijing.

Meeting Zheng Shanjie, chairman of China's National Development and Reform Commission, Habeck said the proposed EU tariffs were intended to level the playing field with China.

Zheng responded: "We will do everything to protect Chinese companies."



Saudi Arabia’s PMI Remains in Economic Expansion Zone

King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)
King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)
TT

Saudi Arabia’s PMI Remains in Economic Expansion Zone

King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)
King Abdullah Financial Center in Saudi Arabia (Asharq Al-Awsat)

The latest Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) showed the Kingdom's PMI stabilized at 55, as a result of another strong improvement in business activity in the non-oil-producing private sector.
The analytical readings issued by the Ministry of Economy and Planning indicate that the index stayed above the fifty-point limit, remaining in the economic expansion zone.
Riyad Bank said on Wednesday that companies had increased their production levels to support sales and projects, despite additional evidence of declining demand expectations. Growth in new orders fell to its weakest level in nearly two and a half years.
Non-oil producing companies recorded the slowest increase in purchases of production inputs in nearly 3 years, as they are looking to ease recent increases in inventory, while job growth has also declined compared to May.
At the same time, other reports noted that customer discounts affected overall selling prices and ran counter to efforts to pass on the strong increase in input prices to customers.
Naif Al-Ghaith, chief economist at Riyad Bank, said: “The PMI for the non-oil economy recorded at 55.0 in June, marking the slowest pace of expansion since January 2022. The new orders component fell compared to the previous month, suggesting a slight moderation in demand growth.”
He added: “However, the growth in non-oil sectors was supported by a strong increase in output levels. Employment numbers also rose, while suppliers’ delivery times continued to improve.”
In an analytical bulletin, the Saudi Ministry of Economy and Planning explained that the production index recorded 61.1 points, supported by the improvement in commercial activity in the non-oil private sector, and that employment indicators continued to rise, driven by the increase in the number of employees and the stability of supply chains.
The Ministry indicated that the optimistic outlook of business owners and investors continued in light of the improvement in market conditions and the rise in demand for goods and services, which in turn reflects positively on the future outlook for the current year.