CBN丨China, EU vow joint efforts to uphold multilateral trading

Hi everyone. I’m Stephanie LI.

Coming up on today’s program

• China and the EU vowed to jointly uphold the multilateral trading system with the WTO at its core;
• China rolls out “refund-upon-purchase” tax policy nationwide for foreign tourists.

Here’s what you need to know about China in the past 24 hours

The joint efforts of China and the European Union to uphold a rules-based multilateral trading system and promote trade liberalization will enhance the stability and certainty of global trade and the world economy, said senior trade officials on both sides.

During his meeting with European Commissioner for Trade and Economic Security Maros Sefcovic via video on Tuesday, Chinese Commerce Minister Wang Wentao said China is willing to resolve differences through consultation and negotiation, but if the US insists on going its own way, China will fight to the end, according to a statement released by China's Ministry of Commerce on Thursday.

Sefcovic said the US tariff hikes have severely impacted international trade, causing significant repercussions for the EU, China and many vulnerable countries. The EU is willing to work together with other World Trade Organization members, including China, to jointly safeguard the normal functioning of global trade.

EU member states voted Wednesday to approve retaliatory tariffs on $23 billion in goods in response to President Trump’s 25% tariffs on imported steel and aluminum, as the largest U.S. trading partner described them as “unjustified and damaging.”

The tariffs will go into effect in stages, with some on April 15 and others on May 15 and Dec. 1. The EU executive commission didn’t immediately provide a list of the goods.

Following the US' imposition of 104-percent tariffs on Chinese goods, China responded with a raft of measures on Wednesday, including lifting the additional tariffs on products imported from the US to 84 percent, and adding a number of US companies to its export control list and unreliable entity list.

Emphasizing the importance of China-EU economic and trade relations, Sefcovic said that the European side is ready to strengthen dialogue and communication with China and to promote expanded two-way market access, investment and industrial cooperation.

China and the EU agreed to promptly launch consultations to conduct in-depth discussions on market access-related issues, with the aim of creating a more favorable business environment for their businesses, said the commerce ministry statement.

They will also immediately begin negotiations on electric vehicle price commitments and discuss investment cooperation in the automotive industry. Both sides expressed support for restarting the China-EU trade remedy dialogue mechanism, engaging in discussions on trade diversion issues, and effectively managing trade frictions.

• China officially launched the nationwide rollout of a new tax refund policy for foreign tourists after piloting in five regions including Shanghai, Beijing and Guangdong. According to the State Taxation Administration (STA), the reform replaces the traditional "refund-upon-departure" model with a more streamlined "refund-upon-purchase" mechanism. Under this upgraded mechanism, eligible foreign tourists can now instantly claim value-added tax (VAT) rebates at designated tax-free retail stores by completing a credit card pre-authorization. The refunded amount is immediately available at the point of purchase, allowing tourists to reinvest those funds into additional spending during their stay.
• China does not want to fight trade and tariff wars, but will not flinch when a trade and tariff war comes, Chinese foreign ministry spokesperson Lin Jian told a press briefing today after U.S. President Donald Trump threatened to impose more tariffs on imported Chinese products. Meanwhile, the commerce ministry announced to add 12 US entities, including American Photonics and Novotech, to its export control list, and add six US firms, including Shield AI and Sierra Nevada, to its unreliable entity list, both effective 12.01 p.m. Beijing time today.

GBA express

• As of Tuesday, over 170,000 overseas buyers from 210 countries and regions had registered to attend the 137th Canton Fair, which will be held from April 15 to May 5, according to the Ministry of Commerce on Wednesday. About 72 percent of the registered buyers for the fair are from Belt and Road Initiative partner countries, 27.4 percent are from BRICS countries, 11.7 percent from RCEP members, 14.3 percent from the Middle East and 10.5 percent from Europe and the Americas.
• The Hong Kong Investment Corporation is optimistic about the “Belt and Road” market's potential and is seizing the opportunities, including the organization and forthcoming launch of the inaugural international patient capital forum in May to promote synergies among global patient capital institutions, says chief executive Clara Chan Ka-chai. Chan also revealed that HKIC plans to lead a delegation to Southeast Asia next quarter to support its portfolio companies in expanding their business and building networks with regional partners.
• Shein is continuing to ramp up investment in its Guangzhou-based supply chain, the city's government said, in response to reports that the fast-fashion retailer plans to shift part of its production overseas. Local authorities said Shein, a global company that grew out of Guangzhou, continued to see export growth from the city in the first quarter, "undoubtedly putting to rest the rumors of a shift in the supply chain."

Industry and company news

• China's sales of passenger vehicles expanded 14.4 percent in March from the year before to 1.94 million units, an increase of 40.2 percent from February, bringing the total of this year to 5.13 million units, up 6 percent from the same period last year, according to the China Passenger Car Association. Retail sales of NEVs exceeded 990,000 units, up 38 percent from a year earlier and 45 percent from February.
• China's CPI, a main gauge of inflation, fell 0.1 percent in March from a year earlier, according to data released by the NBS yesterday. The PPI, which measures the cost of goods at the factory gate, dropped 2.5 percent in the period.
• Sinopec and Saudi Aramco plan to expand their joint venture refinery to meet growing demand for high-end petrochemicals in Saudi Arabia. The project will add an ethylene cracker with an annual capacity of 1.8 million tons, an aromatics unit producing 1.5 million tons a year, and downstream polyolefin unit at the complex owned by Yanbu Aramco Sinopec Refining Company.
• Nearly 3.1 million content creators on Bilibili earned money last year, with their total revenue up 21 percent from 2023, the Chinese video streaming site’s latest ESG report showed. As of Feb. 28, Bilibili initiated 101 charity projects, attracting 1.1 million users donating over 27 million yuan to support rural education, minority groups, and cultural heritage protection.
• JD.Com has begun recruiting international and Chinese brands going global in the maternal, child, and toy categories for its European online retail business, media reported yesterday, citing the Chinese e-commerce giant. The firm also started testing its European retail brand, Joybuy, in London.

Asia-Pacific highlights

• Chinese Commerce Minister Wang Wentao said during a video meeting with Tengku Zafrul Aziz, Malaysia's minister for investment, trade and industry on Wednesday, that the US "reciprocal tariffs" severely undermines the legitimate rights and interests of all parties involved, including China and ASEAN countries, and represents a typical act of unilateral bullying. Wang reiterated that China is willing to work with its trading partners, including ASEAN, to strengthen communication and coordination, address respective concerns through equal-footed dialogue and consultation based on mutual respect, and jointly uphold the multilateral trading system. Tengku Zafrul said that the relevant policies of the US government don't conform to the principles of free and fair trade as stipulated by the WTO. Malaysia fully respects China's position and is willing to jointly support multilateralism and the development of global trade. Malaysia will consult with ASEAN countries on the series of US "reciprocal tariff" measures to formulate a coordinated response, he said.
• Vietnam welcomed a record number of tourists in the first quarter, with Chinese visitors leading the pack at nearly 1.6 million, a remarkable 78.3 percent year-on-year increase, local media outlet said. Vietnamese local carrier VietJet Air has recently launched four new direct routes connecting Beijing and Guangzhou with Vietnam's Hanoi and Ho Chi Minh City. The Beijing-Hanoi route will be upgraded to a daily service starting on April 27, while a new Shanghai-Hanoi route is set to launch on April 29 with daily flights.

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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