The Flanders-China Chamber of Commerce (FCCC) is organizing a meeting and reception with the Ambassador and Consuls General of Belgium in China.

This event will take place on Monday 28 January at 18h00 at ING Belgium, Troonstraat 1, 1000 Brussels.

This event is an excellent opportunity to discuss your companies’ activities in China with the Ambassador and Consuls General of Belgium in China:

Mr Marc Vinck, Ambassador of Belgium in China
Mr Paul Lambert, Consul General of Belgium in Shanghai
Mr Joris Salden, Consul General of Belgium in Guangzhou
Mrs Michèle Deneffe, Consul General of Belgium in Hong Kong and Macao

Programme:
6.00 pm Registration
6.30 pm Introduction by Mr Stefaan Vanhooren, Chairman, Flanders-China Chamber of Commerce
6.35 pm Speech by His Excellency Mr Marc Vinck, Ambassador of Belgium in China
7.00 pm Exchange of views and networking with the Ambassador and Consuls General
8.00 pm End of Programme

If you are interested in attending this event, please register before 23 January 2019 via this link

If your company is interested in sponsoring this event, please send an e-mail to: info@flanders-china.be

The participation fee for members is 55 € (excl.VAT). The fee for non-members is €85 (excl.VAT).

The Flemish provinces are working diligently on closer cooperation with the Chinese regions of Chengdu, Chongqing, Guangdong, Hebei en Shaanxi. Through the
I²PCC they are gladly making available this network to Flemish cleantech companies. Read: unique contacts in very diverse Chinese regions and niche markets.

Discover on February 5 what I²PCC could do for your company. You will get an insight into the Chinese economy, inspiring examples of Flemish successes in China and the possibility to evaluate your cleantech innovation compared to the potential of the Chinese market in the selected regions.

Free of charge if registered by 31 January 2019 via this link

I²PCC is a common project of the provinces of Antwerp, Limburg, East-Flanders and Flemish-Brabant, with support of Cleantech Flanders, Flanders Investment & Trade and the Flanders-China Chamber of Commerce. The project is receiving financial support from the European Fund for Regional Development (EFRO).

Trade talks between China and the U.S. are still expected to continue despite the arrest in Canada’s Vancouver on a U.S. extradition warrant of Huawei Technologies’ CFO Meng Wanzhou.

Top Chinese and U.S. trade negotiators have discussed plans for renewed trade talks, the first time senior officials from both countries have had official contact since the Presidents of China and the United States reached a truce on tariffs on December 1. Chinese Vice Premier Liu He, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer discussed the plans over the phone in a sign that the two nations still want to engage in trade talks. In a brief statement, the Chinese Ministry of Commerce said the three men exchanged views on the next step on the road map towards consensus. China plans to send a 30-member delegation to the U.S. soon to continue the talks. U.S. President Trump said the Chinese government was once again buying large quantities of U.S. soybeans. Chinese importers have bought 1.5 million to 2 million metric tons in a 24 hour period for delivery in the first quarter of 2019, the U.S. Soybean Export Council said. The country last year bought about 60% of U.S. soybean exports in deals valued at more than USD12 billion.

But Chinese Vice President Wang Qishan said China will maintain its “strategic focus” and will not abandon its economic model. He added that China would strive to be a leader in ‘economic globalization’ and pledged support for the multilateral economic system. Wang was making a rare appearance at a “non-government” event, the Imperial Springs International Forum in Guangzhou, which was attended by 200 international guests, including Yukio Hatoyama, former Prime Minister of Japan and Kim Campbell, former Prime Minister of Canada.

“We still have to continue the trade talks,” said Wu Xinbo, Director of the Center for American Studies at Fudan University. “Meng’s arrest is an individual case. Trade is the bigger issue.” But Wu said that Meng’s case was likely to be put on the table during the negotiations and that China would be more “clear-eyed” about the U.S. desire to contain the country’s technological rise. U.S. Trade Representative Robert Lighthizer insisted that the arrest should not affect the negotiations, saying: “This is a criminal justice matter. It is totally separate from anything I work on or anything that trade policy people in the administration work on.” Scott Kennedy, Deputy Director of the Freeman Chair in China studies and Director of the project on Chinese business and political economy at the Center for Strategic and International Studies, said he did not expect China to use the case as an excuse to stop negotiations on the grounds of “bad faith” from the U.S. He said the talks should not be overshadowed by individual cases and should focus on the bigger picture. U.S. President Donald Trump told Reuters that he would intervene in the case at the U.S. Justice Department if it would serve national security interests or help close a trade deal with China.

Meanwhile, China has agreed to lower import tariffs on U.S.-made cars from 40% to 15% for three months. American car exports to China fell sharply after tariffs were imposed in early July in retaliation for Trump’s 25% tariffs on USD34 billion of Chinese imports. The export value of vehicles in August stood at just over USD460 million, down 55% on the same monthly figure for 2017. The year-to-date value for 2018, around USD5.6 billion, was down just over 30% compared with export numbers for 2017 through October. The Chinese market constitutes just under 11% of global exports of U.S. motor vehicles. Tesla is set to be a major beneficiary from the reduction in tariffs. The company immediately announced that it would cut the prices of its cars in China.

Pascal Lamy, former Director General of the WTO between 2005 and 2013, does not believe that “there is any serious problem” with the Chinese trade surplus with the U.S. It was 10% of gross national product (GNP) 10 years ago and it is 1% now. Imports have also increased more than exports in the past decade, which is what was expected to happen. The U.S. has a structural trade deficit that will remain in place as long as its citizens consume more than the average consumers on the planet and save less than the rest. This is not a trade-related issue and, therefore, U.S. President Donald Trump will achieve nothing imposing tariffs on Chinese products.”

The ongoing trade war between China and the United States will continue in non-tariff form and also break out into non-trade areas even if Presidents Xi Jinping and Donald Trump reach a deal by March’s deadline, Lian Ping, Chief Economist of the Bank of Communications (BOCOM) said. “No matter if relations are tense or not, their struggles will continue over the long run.” It is just the tip of the iceberg hiding deeper, underlying tensions between the two countries and the real problem lies in their fraught bilateral relations, Alibaba Group Executive Chairman Jack Ma said. “Even if the trade war is over, the complicated relationship between China and the U.S. will not be changed in the next 20 years,” Jack Ma said. “We need to bear in mind that China has emerged stronger after meeting every challenge,” he added.

Huawei’s Chief Financial Officer Sabrina Meng was freed on bail of USD7.5 million by Canadian judge William Ehrcke at the British Columbia Supreme Court in Vancouver. The collateral for the bail includes cash and real estate, partly pledged by friends of the Huawei executive. Her lawyer cited medical conditions and the lack of the risk of her fleeing as reasons for granting bail. The judge outlined 15 provisions including Meng agreeing to submit to constant surveillance, and surrendering both her Chinese and Hong Kong passports. She is also subject to a curfew between 11 pm and 6 am. The U.S. has not yet submitted a formal request for extradition. If no formal notice is given within 60 days, she will be released. The U.S. has until January 8 to file a formal extradition request. She is due back in court on February 6, when the judge will set a date for her extradition hearing.

But the Chinese government kept up the pressure for her immediate release after summoning the Canadian and U.S. Ambassadors to the Chinese Foreign Ministry. In China, a nationalist backlash against her arrest is also continuing, forcing Canada Goose to delay the opening of a 600 square meter flagship store in Taikoo Li Sanlitun in Beijing. It is to be the 61-year-old company’s first physical store in mainland China.

The U.S. extradition request accuses Meng of fraud by covering up Huawei’s links to a company that traded with Iran in breach of U.S. sanctions. She is said to have told financial institutions that affiliate Skycom was a separate company in order to conduct business in Iran, when in fact it was a Huawei subsidiary. Chinese Foreign Ministry Spokesman Lu Kang said that Canada failed to inform China about the detention of Meng until officials were asked about the case, thereby violating a bilateral consular agreement. The assertion came just hours after Ottawa insisted it had notified the Chinese Consulate in Vancouver on December 1, the day of her arrest.

Chinese Foreign Minister Wang Yi warned Canada and the U.S.: “We keep abreast of the safety and welfare of every Chinese overseas, at all times. The government will not sit back in silence amid bullying that recklessly violates the legitimate rights and interests of Chinese citizens,” Wang said at an annual conference on international relations and diplomacy. “The Chinese government will defend its citizens’ legal rights by all means.” The possibility that Canada may comply with China’s call to directly release Meng are small, said Shi Yinhong, Director of Renmin University’s Center for American Studies.

Meanwhile, two Canadians living in China have been arrested, in what Chinese authorities say is unrelated to the Meng case, but what Western analysts consider to be retaliation. Former Canadian Diplomat Michael Kovrig was detained on the charge that his employer, the Brussels-based International Crisis Group, was not properly registered in China. He was acting as the NGO’s North East Asia Senior Adviser since February 2017. Michael Spavor was arrested in Dandong, Liaoning province. He is known for his contacts with high-ranking North Korean officials, including top leader Kim Jong-un. Spavor also helped facilitate NBA player Dennis Rodman’s visit to North Korea in 2013. Both Canadians were under investigation by state security officers in Beijing and Liaoning province respectively on suspicion of “engaging in activities that endangered China’s national security.”

Huawei is still struggling to get his products accepted in Western countries that have security concerns. Japan joined the U.S., Australia and New Zealand in effectively blocking Huawei from taking part in supplying equipment for its 5G network. Japanese authorities have decided to exclude Huawei and ZTE Corp, another China telecoms equipment company, from public procurement as of April 2019. Japan’s three major mobile phone carriers planned to take concerted action alongside the government, with company sources saying that they will stop using Chinese products in the current mobile base stations and for the next-generation 5G mobile communications network.

The claim that using Huawei products poses a security risk is not shared by all Western nations and no evidence has been produced. French Finance Minister Bruno Le Maire told journalists Huawei was welcome in France. “It’s a company that plays an important role in France, that invests in France and these investments are welcome,” Le Maire said after meeting Chinese Vice Premier Hu Chunhua. However he added: “If some of the investments touch on national sovereignty or sensitive technologies, it’s up to us, the government, to set certain limits.” The Italian island of Sardinia meanwhile is working with Huawei to create the country’s first regional “smart zone”. Huawei has over 11,000 staff based in Europe, business deals with European telecoms operators, and 18 research centers. “We categorically reject any allegation that we might pose a security threat,” the company said. German, British and Belgian security services have all warned about dealing with Chinese telecom firms.

Some U.S. and Canadian companies are suspending trips by their executives to China, fearful that they may be arrested. Chinese business leaders and hi-tech researchers are also reconsidering foreign trips, while some Chinese companies are offering their employees subsidies to buy Huawei smartphones and punish those who buy iPhones.

The Fuzhou Intermediate People’s Court has granted U.S. chip maker Qualcomm’s request for two preliminary injunctions against four subsidiaries of Apple to immediately stop selling models from the iPhone 6S to iPhone X. But contrary to some media reports, it doesn’t prohibit the sale of all iPhones in China and Apple is expected to solve the problem by releasing an update to its iOS mobile operating system. The court order is still preliminary and needs to be confirmed. If imposed, it could adversely impact Apple’s revenues as Greater China – which includes mainland China, Hong Kong, and Taiwan – is currently the U.S. company’s third largest market, accounting for about a fifth of Apple’s revenues. Apple’s most recent phone models, which include the iPhone XR and iPhone XS, are not included in the ruling, as these devices were not released when the suit was filed in 2017. However, Qualcomm also filed a request to have the sale of those models banned too.

The patent infringement suit involves Apple’s alleged violation of Qualcomm’s software patents related to resizing photographs and app management on a touch screen, and concerns devices sold with Apple’s iOS 11, an older version of its operating system. Qualcomm alleges that “Apple continues to benefit from our intellectual property while refusing to compensate us”. Apple said in a statement that “all its iPhone models remain available” for customers in China, and has filed a request for reconsideration with the court as a first step to appealing the preliminary injunction. It called Qualcomm’s effort a “desperate move by a company whose illegal practices are under investigation by regulators around the world”, adding that Qualcomm “is asserting three patents they had never raised before, including one which has already been invalidated”.

“The older iPhone models included in the court order still make up a big volume of iPhone sales in the China market and if a prolonged ban is enforced, the supply chain in China will also be affected,” said Kiranjeet Kaur, Senior Research Manager with IDC’s Asia-Pacific client devices group. Foxconn, AAC Technologies, BYD and BOE Technology are among Apple’s Chinese suppliers, providing a range of services including assembling and supplying components and technology for its products.

Canalys Analyst Nguyen Tuan Anh said the ban is unlikely to be enforced in the coming months as it is a preliminary injunction and legal proceedings are likely to stretch out over several months. “The iPhone models affected are already over a year old and since China is an advanced market, consumers generally prefer the new smartphone models like the iPhone XS and XR,” he said, adding that Apple will see only a limited effect on its revenues in the China.

In recent years, Apple’s market share in China has declined from 15% in the fourth quarter of 2017 to 9% in the third quarter of 2018, according to Counterpoint Research. Chinese smartphone makers Vivo, Oppo, Huawei Technologies, Huawei’s sub-brand Honor, and Xiaomi made up the top five in China, the world’s largest smartphone market, in the quarter ended September. Apple came in sixth. If the court order is enforced, Apple will lose out in the category of smartphones priced below CNY7,000, giving brands like Huawei a big advantage to fill the gap, according to IDC China Managing Director Kitty Fok.

Although the court order was issued in Fuzhou, it is effective nationwide. “However, many resellers and e-commerce platforms selling the affected iPhones have not received a formal notice to halt sales, so it is business as usual for them,” said Fok, as reported by the South China Morning Post. The final verdict may still be months or years away.