Jens Eskelund, president of the EU Chamber of Commerce in China, says more European companies are onshoring activity into China or sourcing components from Chinese vendors, with 56% of members increasing this. He attributes the trend to saturated Chinese markets, falling margins, overcapacity and 44 consecutive months of producer price deflation through April, which make Chinese supply chains essential for competing globally. He argues trade balances matter less than economic security and autonomy, citing dependence on rare earths, magnets and Starlink, with a €400 billion deficit for 2026 cited as a hypothetical example. On electric vehicles, he calls the initial deal for China to halve its hybrid car exports to Europe a positive, pragmatic step with minimal impact on overall trade.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on english.ckgsb.edu.cn ↗
Keywords
ChinaEuropesupply chainexports
Open a keyword to see other news on the same topic.
Related news
- Why are Chinese electric cars spreading across Europe?
Chinese electric cars such as Chery's Jaecoo 7, which looks similar to the Range Rover but costs about half as much, are selling well across Europe, especially in the UK, where it was the best-selling model in September. According to Rhodium Group, Chinese car sales in Europe reached 66,000 units in 2021 and have kept rising; in the first 8 months of this year, Chinese brands held over 28% of the UK's electric and hybrid market and 21.7% of battery-electric sales in the EU, while sales of five Chinese carmakers in the EU rose 71%. Price and technology are key factors, as BYD models typically cost 30,000-45,000 euros, below the 50,000-euro average for European EVs. While the EU drafts a law requiring “made in Europe” content to exclude Chinese vehicles from financial support, Geely has agreed to buy a 34% stake from Ford in Spain, and Changan says it could produce “made in Europe” vehicles from next year. However, experts warn the proposal could hurt European companies that depend on Chinese batteries, after Sweden's Northvolt filed for bankruptcy last year.
- China economy accelerated in July - September quarter on robust exports
China said its economy grew 4.5% in the July–September quarter from a year earlier, up from 4.3% in April–June, helped by strong exports. Growth for the first three quarters reached 4.6%, and Beijing's full-year target is 4.5% to 5%, below last year's 5%; the IMF cut its 2026 forecast to 4.5%. Weak domestic demand, weighed down by a prolonged property slump, contrasts with booming trade: exports rose 36% last month, and the trade surplus reached $938 billion from January to September, on track to beat last year's record $1.2 trillion. Exports to the EU rose 16% in the first nine months, and the EU and China agreed this month to roughly halve Chinese hybrid vehicle imports over the next few years, though economists say trade imbalances will be hard to resolve quickly.
- China signals readiness to work with EU on global economic imbalances
China says it is ready to strengthen cooperation with the European Union on global economic imbalances, stressing dialogue and macroeconomic policy coordination. At a meeting with EU officials Valdis Dombrovskis, Christine Lagarde and Kyriakos Pierrakakis, Chinese Finance Minister Lan called imbalances a complex structural issue shaped by geopolitics and protectionism, and urged a comprehensive, objective assessment rather than reliance on isolated indicators. The talks come amid trade negotiations on autos, following an understanding a week earlier to limit Chinese hybrid vehicle exports to Europe. The EU seeks to reduce its trade deficit with China, which reached about 360 billion euros ($400 billion) in 2025.
- Coupang (CPNG) Widens Rocket Fresh Reach With New US Goods Export Partnership
Coupang (NYSE:CPNG) has expanded its collaboration with Wisconsin-based Sartori Cheese to sell products in South Korea through Rocket Fresh. The partnership focuses on exporting high-value, perishable US dairy products to Coupang customers across South Korea via its logistics network. The article says the deal tests whether Coupang's logistics-heavy model and cold chain can handle transit-sensitive goods, and reflects its broader role in connecting US producers with online shoppers in Asia. It says the clearest signal to watch is whether Coupang discloses rising overseas sales of US goods on its platform, through category revenue data or commentary on Rocket Fresh order volumes.
- China Urges APEC Coordination as Regional Growth Is Forecast to Slow
At a Hong Kong meeting on October 20, Chinese Finance Minister Lan Fo’an urged APEC economies to coordinate policy and protect supply chains as regional growth slows. APEC’s Policy Support Unit forecasts regional growth of 3.2% in 2026, down from 3.3% in 2025, and 3.0% in 2027, with inflation rising to 2.9% in 2026 from 2.4% in 2025. Risks cited include energy costs, geopolitical tensions and uncertainty over trade policy. Lan also sought cooperation on artificial intelligence, the digital economy and low-carbon development. China’s National Bureau of Statistics reported GDP growth of 4.5% in the third quarter and 4.6% in the first nine months of 2026.
- Robot Wars – How China Has the Robotics Industry in Its Grip
China's requirement for export licenses on rare earth magnets has affected production of Tesla's Optimus robot, since each humanoid robot needs up to 4.5 kg of these magnets and China supplies over 90% of the world's supply. REalloys (NASDAQ: ALOY) is building a rare earth supply chain outside China, from processing in Saskatchewan to metal-making in Ohio. Goldman Sachs now expects about 6.5 million humanoid robots to be sold annually by 2035, nearly five times its earlier forecast. Humanoid robots are moving onto factory lines, with Tesla installing Optimus production lines at Fremont and IDC counting nearly 25,000 units shipped globally in the first half of 2026, mostly from China. The article also notes that rare earth companies, not robot makers, were the top performers in Morgan Stanley's 'Humanoid 100' list, and that REalloys has secured about 80% of the output from the Saskatchewan Research Council's upgraded facility.
Related markets
Latest news
- Bitcoin's volatility is well above euro-dollar gyrations, though it has calmed to rival Nvidia's
CoinDesk compares the 90-day realized volatility of bitcoin with other assets, a measure of how much prices moved, based on the standard deviation of daily returns and annualized. As of Thursday, bitcoin stood at about 38%, versus about 23.5% for gold, about 11% for the S&P 500, and about 37% for Nvidia, while the EUR/USD pair was the steadiest at 4.6%. Bitcoin's 90-day volatility has averaged about 58% since January 2020, peaking at 134% in June 2020, and its calmest reading of 27.5% came in September 2025 when prices rose above $100,000. The article concludes that bitcoin has settled down and now moves like a big tech stock, but it has yet to rival a national currency, since most fiat currency pairs have realized volatility below 10%.
- Honeywell (HON) Unveils Forge Cognition To Bring AI Into Facility Operations
Honeywell International has launched Forge Cognition, an AI and simulation platform for facility operations, developed with NVIDIA and Dell Technologies. The platform applies AI models and physics-based simulation to asset reliability, energy use and day-to-day plant performance. The article says it extends Honeywell's Forge software stack across more than 300,000 installed sites where the company already manages controls, safety and building systems. NVIDIA contributes AI models such as Nemotron, Omniverse libraries and GPUs, while Dell brings its AI Factory stack for scaling from the data center to the edge. The launch fits Honeywell's push for a higher mix of software and services to support its long-term margin and growth goals.
- 3 Investment Grade Bond Ideas Riding Big Tech AI Capex Plans
Big Tech capex plans for AI and chips have unsettled credit markets, and this article highlights three US investment-grade issuers tied to them. Lattice Semiconductor, with Core Lattice sales of about US$651 million and a market value near US$15.3b, supplies low-power FPGAs used in data centers and networking gear. Datadog generated about US$4.0b from IT infrastructure products, has a market value near US$92.6b, and counts over 750 AI customers. Vertiv Holdings Co, with an equity value near US$81.7b, supplies power and cooling hardware for AI data centers, reported Q4 2025 organic orders up 252% year over year, and holds a $15 billion backlog equal to roughly 1.5 years of trailing revenue. The article notes that its wider screen surfaced 30 more US investment-grade issuers with similar capex-driven stories.
- Nebius Has Cratered Over The Last 3 Months: This Wall Street Ratings Firm Says 2.5X Returns Will Materialize Soon
A Gartner forecast that over 80% of neocloud providers will cease independent operations by 2030 triggered a sharp sell-off in Nebius Group (NBIS), which now trades at $159.17, about 47% below its 52-week high of $299.86. The consensus target from 21 analysts is $283.60, while Northland Securities holds the Street-high target of $410.00. Last quarter revenue reached $582.3M, beating the $574.65M consensus, though the operating loss was $175.9M and three customers made up 24%, 21% and 14% of revenue. Management reaffirmed full-year revenue guidance of $3 billion to $3.4 billion and roughly 40% adjusted EBITDA margin, and CEO Arkady Volozh said Nebius could sell its entire 2027 capacity on current terms. The article flags dilution risks from $20.8B of convertible debt, $12.1B in upcoming lease obligations and ongoing share sales.
- Microsoft Has a $1 Trillion Opportunity Hiding in Plain Sight
24/7 Wall St. sets a 12-month price target of $647.87 for Microsoft, implying 21.8% upside from $531.90, and rates the stock a buy. The thesis centers on contracted demand, with commercial remaining performance obligations up 84% to $678 billion and Azure exceeding $100 billion in annual revenue after growing 43%. Microsoft 365 Copilot has passed 30 million paid seats, and the bull scenario reaches $752.32. The main risk flagged is capex, which rose 79.62% to $115.95 billion in fiscal 2026 while free cash flow fell 6.46%, with a worst-case scenario at $547.61. The article notes Microsoft expects to stay free-cash-flow positive in fiscal 2027, unlike Alphabet (-$5.86 billion) and Oracle (-$5.40 billion).
- The 10-Year Yield Just Fell Below 5% as Investors Fled AI Stocks
The 10-year Treasury yield fell 19.3 basis points to 4.953% on October 22, 2026, as investors fled AI stocks for safer assets. Meta Platforms fell 7% after its results, the Philadelphia semiconductor index dropped 6.7%, and the Nasdaq Composite lost 2.6%. CME FedWatch odds of a December rate hike eased to about 78%, and Freddie Mac's 30-year mortgage average fell to 7.32%, though mortgage rates remain above 7%. The article says this fear-driven bond rally could reverse quickly, with the FOMC meeting on October 27 and 28 and PCE inflation data on October 29 as key tests.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.