Mikołaj Woźniak, Konrad Falkowski
“No” to Chinese cameras in Amsterdam
Amsterdam city councilor Alexander Scholtes announced on June 10 that the city authorities will remove Chinese cameras used for security and traffic monitoring purposes. The driving factor behind these actions is the fear of espionage, a concern the Netherlands has been grappling with recently. According to Dutch authorities, around 1,280 cameras are slated for replacement.
The decision to withdraw Chinese technology began in May 2023, when the Amsterdam City Council adopted a motion urging the mayor and councilors to stop using cameras manufactured in China. This move was driven by suspicions that the cameras were transmitting recorded images to their manufacturer, and therefore to the Chinese government. Another significant point in the discussion was the controversy surrounding the companies that produced the cameras. Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. are accused of participating in human rights violations against the Uyghur minority in China. According to American authorities, the products of these companies are used, among others, to monitor re-education camps in Xinjiang.
According to authorities, Amsterdam does not intend to replace all the cameras ad hoc due to the high costs. Instead, the mayor and the council intend to implement new conditions for purchasing cameras, ensuring they meet human rights criteria. Currently, all city entities are required to independently seek alternatives to the existing Chinese cameras, as per the council’s orders. It is expected that all Chinese cameras in Amsterdam will be replaced at a lower cost within the next five years. This initiative has already led to the replacement of several cameras used in government office infrastructure. These actions follow similar initiatives in the UK and Australia. For example, last month, the UK government decided to remove Chinese camera systems from sensitive locations by April 2025, with around 50% already replaced. The increased motivation of the Dutch authorities is linked to recent acts of espionage. In 2023, Dutch intelligence uncovered Chinese hackers spying on the secret network of the Dutch Ministry of Defense.
EU announces new tariffs on Chinese electric vehicles
This marks a significant moment in EU-China relations. On 12 June 2024, amid an ongoing investigation, Brussels announced that the European Commission had determined that “the battery electric vehicles (BEV) value chain in China benefits from unfair subsidies, posing a threat of economic harm to EU BEV producers.” The EC has contacted Chinese authorities for consultations to resolve the issue within the framework of WTO rules. Additionally, the European Commission has informed China of the introduction of “provisional countervailing duties” on Chinese electric cars, set to take effect on 4 July 2024.
Notably, three Chinese companies will face individual duties: BYD at 17.4%, Geely at 20% and SAIC at 38.1%. Additionally, the companies that cooperated with the EU investigation but were not sampled will incur a weighted average tariff rate of 21%. All other companies that did not cooperate will face a residual duty of 38.1%.
The tariff increase will significantly raise costs for manufacturers and is intended to pressure Beijing to cease subsidizing its electric vehicles, leveling the playing field on the European market. However, this move is expected to result in substantial losses for many companies, including European ones.
Reuters gathered opinions and comments from the car manufacturers community:
- Oliver Zipse, CEO of BMW: “this decision for additional import duties is the wrong way to go. The EU Commission is thus harming European companies and European interests;”
- the representation of Volkswagen: “Countervailing duties are generally not suitable for strengthening the competitiveness of the European automotive industry in the long term;”
- Ola Källenius, CEO of Mercedes-Benz: “As an exporting nation, what we do not need are increasing barriers to trade. We should work on dismantling trade barriers in the spirit of the World Trade Organisation;”
- Hildegard Müller, chairwoman of the Verband der Automobilindustrie (VDA), also expressed a similarly critical tone: “This measure further increases the risk of a global trade conflict … The potential damage that could result from the measures now announced may be greater than the potential benefits for the European – and in particular the German – automotive industry.”
In contrast, the French Plateforme Automobile (PFA), a French automotive lobbying group, expressed a different opinion: “The European authorities’ guidelines in favour of all-electric vehicles from 2035 … only reinforce the requirement to defend European interests against any possible anti-competitive practices.”
Nevertheless, it cannot be denied that the majority of opposition voices are in the mainstream, a fact quickly exploited by the Chinese propaganda mouthpiece, the Global Times. The following fragment can be considered evidence: “The strong rejection from European auto groups underscored the unpopularity of the EC’s move, as well as the politicization of trade issues by the executive body of the EU, given the opposition comes from an industry that the EC claims to protect with the additional tariffs.”
Beijing has also commented on the situation. During a press conference on the same day, the spokesman for the Chinese Ministry of Foreign Affairs, Lin Jian, responded to a question by stating that the EU’s “anti-subsidy probe is typical protectionism” and more and more new tariffs on electric vehicles from China violate market economy principles and international trade rules, disrupts China-EU economic and trade cooperation and the global automotive industrial and supply chains and will eventually hurt Europe’s own interests.” He concluded by asserting that the People’s Republic of China will not leave this matter without retaliation: “China will take all measures necessary to firmly defend our lawful rights and interests.”
Germany seeks an amicable solution to the dispute over Chinese electric cars
Germany expects a “serious move” from China regarding tariffs on imported electric cars. Berlin hopes that talks and consultations will help contain the growing tensions in bilateral relations between the EU and the People’s Republic of China. Chancellor Olaf Scholz’s government is advocating for an “amicable” solution. Federal government spokesman Wolfgang Büchner presented the situation during a press conference, stating: “From the federal government’s point of view, it would be very desirable if we could find an amicable solution to this issue. But it is also clear that a serious move is needed from the Chinese side. The Chancellor has always stressed that he is convinced that our companies can survive in fair and free competition thanks to their high-quality products and services.”
Continuing on this topic, it is worth mentioning the remarks by German Transport Minister Volker Wissing. In an interview for the German daily “Tagesspiegel”, he expressed concern about the situation, stating that a trade conflict with the People’s Republic of China would be a disastrous. “Nobody can want a trade war with China. It would be a disaster for Germany, and it would not be beneficial for the European Union either”. When asked about his views on the European Commission’s approach, he replied: “I don’t think anything about it. The task before us is to ensure that we compete on the market and do not limit competition. Restricting competition through high tariffs means that the competitive pressure on European producers is decreasing. And then consumers lose because only competition ensures low prices with the best quality.”
From the above it is evident that Germany is eager to prevent a scenario where the EU and China escalate tariffs against each other, as this would exacerbate the conflic and adversely affect German automotive giants. Such a situation would ultimately undermine Germany’s own interests.
Chinese retaliation – European pork
The Chinese response the EU’s announcement of countervailing duties on Chinese electric vehicles came swiftly. On June 17, China retaliated by announcing that it was initiating an anti-subsidy investigation into pork from European Union member states. This move targets Spain, the Netherlands, and Denmark – key exporters of such goods within the EU. Specifically, China will scrutinize pork intended for human consumption, including fresh, cold, and frozen cuts, as well as pig intestines, bladders, and stomachs. The Chinese Ministry of Commerce gave the information that the investigation is set to last a year, until June 2025, with a possibility of a 6- month extension if deemed necessary.
What’s intriguing is that just days before, Reuters (citing the Global Times) reported that Chinese companies had officially requested the Beijing government to start an investigation into EU pork. However, Reuters noted that the Global Times, in a post on the X portal, did not provide specific details about the companies making the request, attributing the information to an anonymous “business insider” source. According to John Clark, former director of international relations at the European Commission’s Directorate-General for Agriculture and Rural Development, this move by Beijing is purely political and retaliatory, carefully orchestrated. Clark believes this action undermines China’s credibility on the global stage and fosters distrust, noting that: “Trust, once gone, takes an eon to restore”.
The reaction from Spain, the EU’s top exporter of pork, appears measured and strategic. Spanish Economy Minister Carlos Cuerpo, referring to the whole issue, acknowledged that the EU and Spain are looking for a way to establish a balance between a potential trade war with China and protecting European products from unfair trade practices: “Just as there can’t be a trade war, there can’t be a subsidy race either”. In turn, Spanish Agriculture Minister Luis Planas expressed his hopes for a space for talks with Chinese partners: “I hope and expect that there will be room for understanding, for negotiation, and to avoid the imposition of tariffs on agricultural and food products.” The European Commission’s spokesman for trade, Olof Gill, was much more confident, denying that any dumping had taken place and noting that the EU would be monitoring the Chinese investigation. As he himself admitted: “We are not worried” because – as he assured – all subsidies under the European Union’s Common Agricultural Policy are in line with WTO rules.
The question is: “Shouldn’t we be actually worried?”, especially after China’s commerce ministry suggested on June 20 that it could impose temporary anti-dumping measures on EU pork imports as part of a year-long investigation, which would lead to a reduction in European exports. Industry experts say this could trigger a “nightmare scenario” in which the European pork industry will have to grapple with lower prices and falling profitability, as well as finding new buyers.
Vice Chancellor of Germany Robert Habeck in China and the beginning of EU-China consultations on trade tensions
Between 17 and 21 June, Vice Chancellor and Minister of Economic Affairs and Climate Protection of the Federal Republic of Germany Robert Habeck embarked on a tour of East Asia. His itinerary focused on two countries: South Korea and the People’s Republic of China. Accompanying him were members of the Bundestag, journalists and representatives of medium-sized enterprises from the German automotive, renewable energy, metal production, biopharmaceuticals and IT sectors.
The German minister arrived in China on 19 June. The visit plans included meetings with Chinese Premier Li Qiang, Minister of Commerce Wang Wentao and Minister of Industry and Information Jin Zhuanglong. The talks were to focus on economic matters and were aimed at easing the growing tensions between the EU and China over the planned increase in EU tariffs on Chinese electric cars. Most likely as a result of the EU’s actions, the Chinese premier cancelled a meeting with the vice chancellor. As an outcome, Habeck had to change his plans and met with the chairman of the National Development and Reform Commission (NDRC), Zheng Shanjie, with whom he discussed bilateral cooperation in the fields of economy, energy and climate. During the visit, the vice chancellor assured that the proposed EU tariffs on Chinese goods were not “punishment”, while accusing Beijing of increasing trade with Moscow.
Following Habeck’s visit, consultations between the EU and China on the EU’s tariff hikes on Chinese electric vehicles began on June 22. The parties, represented by Chinese Trade Minister Wang Wentao and European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis via video conference, agreed to start negotiations. “This is something new and surprising, because over the past few weeks, no specific timetable for negotiations has been agreed,” Habeck said.
At the EU level, Germany is also opposed to the tariffs that are to be imposed on China. According to some experts, including Maximilian Butek, director of the German Chamber of Commerce in China, higher tariffs will not protect German carmakers or make them more competitive. Concerns are primarily directed at the German automotive sector, in the context of the escalating trade conflict with Beijing, which could disrupt their operations in the Chinese market. For German car giants such as Mercedes, Volkswagen and BMW, the Chinese market is considered key, accounting for 36% of their sales volume. Last year, Berlin agreed on its first China strategy. According to it, Germany attempts to pursue a dual-track policy, expanding its companies’ access to the Chinese market while pursuing a policy of “de-risking”. This means simultaneously recognising Beijing as a “partner, competitor and systemic rival”.
Polish President Andrzej Duda in China
The official visit of Polish President Andrzej Duda to China began on June 22 in Beijing, where he was accompanied by the First Lady of Poland, Agata Kornhauser-Duda. This was Duda’s third visit to China, the previous ones in November 2015 and in February 2022 in connection with the opening ceremony of the 24th Winter Olympic Games. During the 5-day trip, President Duda met with, among others, Chinese leader Xi Jinping, Prime Minister Li Qiang and the Chairman of the Standing Committee of the Chinese Parliament Zhao Leji. He also took part in the summer World Economic Forum in Dalian and the Polish-Chinese Economic Forum in Shanghai. At the end of the visit to the Polish embassy in Beijing, he presented decorations to people who have contributed to the development of the Polish-Chinese cooperation. According to the announcement of the Polish president himself, the aim of the visit was to convince the Chinese side to open its market to Polish agricultural products, including primarily Polish poultry and beef. An important aspect was also the presentation of the Polish perspective on regional and global security issues. Andrzej Duda discussed with Xi Jinping the Polish perspective on the problems faced by Europe and Poland, including the issues of Belarus’ hybrid attacks on the Polish border and the war in Ukraine. The Polish president emphasized the importance of these topics, especially in the context of the long-standing friendly relations between China and Belarus and the strategic relations between China and Russia. Additionally, the issue of the future end of the war in Ukraine was raised. “It is no secret that China’s influence, also on Russia, is enormous,” Duda noted. Through these discussions, President Duda sought to make the Chinese side aware that these global problems affect cooperation between Poland and China and the implementation of the Belt and Road Initiative.
President Duda’s visit came as the new Polish government was working on changes to the cybersecurity law. The Chinese side criticized the changes, fearing they could negatively impact relations between the two sides. The Chinese are worried that the new regulations could limit the development of Chinese technology companies in tenders for the construction of Polish 5G networks. Poland’s actions are in line with the EU’s cybersecurity regulations.
According to Chinese experts, Poland can play an important role in bilateral negotiations between the EU and China, especially in the context of the threat of a possible trade war between the two sides. Additionally, Beijing is trying to revive the platform of cooperation with Central and Eastern Europe within the 14+1 format. Although the cooperation project has existed for a decade, the intensity of cooperation is low due to the deterioration of China’s image among the countries of Central and Eastern Europe. This was mainly due to China’s domestic policy during the pandemic, the growing Sino-American rivalry, and Beijing’s tacit consent to a full-scale invasion of Ukraine by Russia. In this regard, the visit of the Polish delegation was to be a signal that Beijing does not intend to give up contacts with the countries of this region of Europe.
Ultimately, the effect of President Andrzej Duda’s trip was the lifting of visa requirements for Poles traveling to China for tourism and business for a period of 15 days. Visa-free travel will be in force from July 1 this year. During the visit, a number of trade agreements were also signed, including an agreement on the regionalization of poultry and meat sales.
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