Next July 1, 2024, the new Company Law comes into force in the People’s Republic of China. Some of the objectives of this law are homogenization in the treatment of Chinese and foreign companies. The aim is to align these regulations with the Commercial Law that governs other Western countries, as well as commonly accepted norms within comparable International Law. This is intended to improve some of the difficulties that appeared in relation to previous legislation.
Some of the most relevant innovations affect contributions of social capital, business management, or transfers of Capital and Liquidation. All of them have tax implications and improvements in governance, including stricter transparency controls. The application of this new regulation may mean a slowdown or increase in the number of administrative procedures for carrying out activities in China. Therefore, it is advisable to reach agreements with companies of a similar or complementary nature (in terms of Joint Ventures), especially in Special Economic Zones (SEZ).
Chinese autos in Spain
Brands such as Aiways, BYD, DFSK, Green Tour, JAC, Lynk&Co, Maxus, MG, Seres, and SWM already sell directly in Spain and Latin America, with some models (changan, Exeed, Haval H6, Hirey Tiggo 8 Pro Max, Omoda C5, Exeed LX, Geely Coolray, Gac Emzom, Changan CS15 between others), to the possibility of configuring, reserving and purchasing vehicles online. First Chinese autos are going to be produced in Barcelona (Spain), initially, next in Hungary to avoid the adverse effects of import taxes and high transportation costs.
2024 is the year chosen by several Chinese manufacturers to start selling their products in several European markets, including ours. It is a risk, but also a stimulus to develop the competence. Conventional combustion motors are more competitive in prices than electrical ones, but the quality of last ones is simlar or better than those produced in the EU. Omoda and Great Wall Motor are two additional Chinese car manufacturers that arrive in Spain in 2024. Beyond the risk for EU countries, one must look as an opportunity to achieve agreements for the production by means a reconversion of old brands.
Agreement for automobile industry
Vehicles similar to (or even better than) the prototypes announced by EU brands are already being mass-produced by Chinese companies. A proof of the increasing quality according to EU standards is that the Chinese BYD Dolphin has been chosen as one of the best four vehicles with cost < € 30K for the EU in the AutoBest 24 by 31 expert journalist in motor.
During the Beijing International Automobile Exhibition 2024 (Auto China, April 2024), Marta Blazquez president of the Spanish Federation of Automotive Dealer Associations (Faconauto), has signed a collaboration agreement with the China Dealers Association. A challenge and an opportunity!
The Spanish network provides a support for Chinese car manufacturers to get their products to Spanish consumers. So, one intends to promete the mutual dialogue and encourage the dialogue between producers, distribuitors and final clients. Next steps to be done concern to increasing the partiicpation of distributors in Intl events to be held in Spain and china.
About US sanctions to the Intl Trade with China
Tariffs for Chinese cars are 100%. Those of the solar panels are 50%. This increase is a declaration of trade war. It makes no sense in the 21st century. It can only be understood in an electoral way. Protectionism is only a temporal solution. Automatic substitution of imports is not feasible. Hence, the first victims of this polcity are the own US citizens.
Some related excerpts of Mr. Wang Yi (Minister of Foreign Affairs of China) declarations about US sanctions applied to China.
·Taking unscrupulous actions against China does not prove the strength of the United States but only reveals that the United States has lost confidence and direction.
It does not solve the U.S.’s own problems but will further impede the normal functioning of global industrial and supply chains.
It will not stop China’s development and rejuvenation but will only spur the 1.4 billion Chinese people to forge ahead with greater determination.
The WTO has drawn a clear conclusion that the U.S.’s Section 301 tariffs violate WTO rules and international law.
People with basic knowledge of international trade believe that the U.S. actions hurt others as well as the United States itself.»
Talks in Beijing
May 9th, Thursday, Javier Finat will give a talk on «Smart Logistics for Railway Transportation» in the Alliance of International Science Organizations (ANSO) Institute of Tibetan Plateau Research, Chinese Academy of Sciences No. 16 Lincui Road, Chaoyang District (Beijing). It is focused on the use of AI to improve Intelligent Transportation and Integrated Logistics in relation to the land portion of the Belt & Road Initiative (BRI). It includes the provision of services for logistics centers ranging from Chongqing to Madrid. The adaptive approach I propose is motivated because ANSO includes at least 50 countries with the Sustainable Economy as a central objective.
May 10th, Friday, a more entrepreneurial talk in the Holiday Inn Beijing Chang’an West (No.66 Yongding Rd, Beijing) on some technological aspects for the «Chinese-Spanish collaboration for Industry and Services», by the Technological Consulting JIRONS and associate entities (SMEs). It is oriented towards the promotion of investments in Valladolid and the development of semi-automated services using Artificial Intelligence techniques. In addiiton of the impact on logistics and transportation, we will put the accent on the automotive industry (the most powerful in Valladolid with international projection), food and beverage industry (traditional sectors already present in China), and computer services (Augmented Reality, assistive devices for disabled persons, production of multimedia content, e.g.) of high added value for qualified workers in China and Spain.
Chinese automotive industry
China is currently the country in the world that sells the most vehicles, although the leadership in value continues to be held by Japan. The recent EU awards won by the Chinese automobile industry show high quality, contrary to the opinion that lower prices mean worse quality (unsustainable claim). Accusing China of overproduction or dumping in the production of automobile vehicles makes no sense. It is a poor self-justification of the protectionist policy when it can compete. The 27% tariffs introduced by Trump (9% in the EU) have failed to substantially slow the growth of the Chinese automobile industry.
International trade is based on exchanging products in which each country has a competitive advantage. Despite the large subsidies from Western countries, neither the EU nor the USA have a competitive advantage in this field, nor in Electronics or in many others, in which China leads world production in an environment much more competitive than that of the Western and Japanese economic areas. China’s subsidies for electric vehicles in 20 years have been lower than those of the USA in 2023. The growth of Chinese exports by 58% compared to Japan’s 6% demonstrates the growing acceptance that Chinese vehicles have around the world. Proof of this is the 350% growth in imports since 2021.
The automobile industry is strategic for the EU due to the employment and wealth it generates. However, it is difficult to compete with her. Protectionism is a provisional measure that only delays the solution of the problem. Renault has understood the old aphorism of «if you can’t beat your enemy, join him» and has sold 50% of its combustion division to the Geely group. Renault will bring the first vehicles with a hydrogen engine to the market in 2028. These engines will be manufactured in the factories in Valladolid. By then, hydrogen production costs are expected to have decreased to make the use of this fuel profitable.
Participation in the ANSO network
The ANSO (Association of National and International Scientific Organizations) based in Beijing has approved the candidacy presented by the University of Valladolid for its incorporation from November 2023. In this way, Spain becomes country number 50 in this network. The initial purpose of the ANSO network is the development of academic collaboration (exchange of professors and students, initially) on different scientific and technological aspects within the framework of the Sustainable Economy.
Collaboration can be bilateral or multilateral. Better knowledge of the professional skills and interests of the participating academic entities is the first step towards closer collaboration in the professional or industrial field. If you are interested in more information in regard to my role as technological consultant, please send me a message at info@jirons98.com
An economic balance for Chinese Economy along 2023
Despite the predictions of the Western media according to which the Chinese economy is beginning to show «worrying symptoms of slowdown,» the first balance sheet figures for the year 2023 show investment in fixed assets has had a year-on-year growth of 3%, the added value of industrial production has grown by 4.6%, sales of consumer goods have increased by 7.2%. These global data show a strengthening of the internal market in China much greater than that of the OECD countries whose leaders seem to live in a parallel reality.
In regard to Foreign Trade, according to Bankinter, the Chinese trade surplus in 2023 as a whole amounts to 878 Bn$, a historical maximum quite far from the 150 + 150 Bn$ per year that it had with the USA + EU in the previous decade. According to the same source, exports slow down -9.9% (decrease in demand at a global level) and Imports also, but less: -7.5%, which seems to be «good news» for Western media. , who logically should be more interested in how to sell products to China, instead of rejoicing at the «contraction» of their International Trade. The EU remains committed to its suicidal policy of commercially isolating China, the only consequence of which is the progressive irrelevance of its economic role in International Trade.
Belt and Roud Forum (BRF)
The Third Belt and Road Forum for International Cooperation (BRF III) was convened on 17-18 October 2023, in Beijing. More than twenty heads of State and Government have attended to this Forum, jointly with high level representatives of more than 150 countries have attended to the 3rd Forum under the leadership of CCP General Secretary and President XI Jinping. A more recent agreement between China and the EU in regard to five thousand trains along the first nine months of 2024 poses formidable challenges from an integral logistic viewpoint.
General goals of the Belt and Road transport corridors: They have the potential to substantially improve trade, foreign investment and the living conditions of citizens in participating countries. Increasing transparenecy for public work contracts and standardisation will improve the efficiency of the BR Initiative. The main goals of BR Initiative are expand and strengthen International Trade, fight against poverty, Improve debt sustainability by lowering risks linked to the re-distribution from logistic nodes, mitigate environmental impact, and improve infrastructures for cities and communities.
Our contribution: We can contribute by developing visualization tools for smart grids, promoting OpenLabs for sharing information, giving support to SMEs at logistic centers, developing models and software tools for interoperability by adopting standards, customizing solutons for each logistic center, and helping to solve bottlenecks risking the efficiency of solutions. If you are interested, please send a message to info@jirons98.com
IST events in Guandong along the second half of September
According to the information provided by 10times, some relevant events to be held in Guangzhou and Shenzhen are the following ones:
2023 Sept 22-24: The International Symposium on Visual Information Communication and Interaction (VINCI) serves as a prominent platform for experts to discuss visual communication theories, designs, and applications. VINCI ’23 will take place in Guangzhou, China. This RTD area encompasses information visualization, graphical user-interfaces, visual analytics, and visual languages. Visual information is increasingly utilized for human-human communication through the internet and mobile devices. Estimated turnout: between 100 and 500 delegates. Selected papers may be published in The Visual Computer (Springer) and Visual Computing for Industry, Biomedicine and Art (Springer).
2023 Sept 26-28 The Global Digital Economy Expo 2023 will be held in the Shenzhen Convention & Exhibition Center, Shenzhen, China. It is a comprehensive expo focusing on the latest technologies, products, services, and business models in the global digital economy. It will continue to focus on national strategies, respond to corporate needs, and comprehensively display cutting-edge technology application solutions and forward-looking products in the fields of information security, digital new infrastructure, digital transformation, industrial Internet, and smart society. The combined exhibition mode aims to create a professional-level digital economy exhibition that integrates technical exchanges, product display, achievement transactions, high-end forums, and investment promotion. The esitmated turnout is between 1K and 5K visitors, and between 100 and 500 exhibitors.