China EU Investment Agreement- Stainless Steel Industry

How much impact does the China EU investment agreement have on stainless steel? What about tariffs?

Time：2021-01-06 Source：Wuxi Hongwang Hits：258

Following RCEP, the world's largest trade agreement signed, by the end of 2020, there is an agreement that may change the market structure and China's future!

Just December 30, the leaders of China and the European Union jointly announced the completion of the China EU investment agreement negotiations on schedule.

At present, the text of the China EU investment agreement has not been published, but from the previous negotiations, the impact on whether Chinese enterprises can "go out" to the EU is roughly as follows:

China EU investment agreement is an agreement to regulate the investment behavior of both sides. If China EU investment agreement is successfully signed, China may get more investment from Europe. On the contrary, in 2019, the proportion of Chinese enterprises choosing the EU as their primary investment destination plummeted by 78.63%, but the most important reason is that the EU has more restrictions on Chinese investment. When the "China EU investment agreement" is signed, these restrictions and thresholds will be greatly reduced, and at the same time, more preferential terms will be offered to the EU.

What impact will that have on our stainless steel industry?

A person in the industry said: "after the epidemic, due to the lower valuation of a large number of enterprises in EU countries, the urgent need for external capital injection, there will be a wave of cross-border M & a climax. For private stainless steel enterprises, such as Qingshan and Yongjin, which have been daring to "go out", it may be a good opportunity! "

Industry person B also agreed: "now that the European Union readjusts its industrial chain and reconstructs some manufacturing links in the industry, they have proposed to lay out manufacturing industries in member countries with relatively low land and labor costs. If the agreement is signed, China may have a certain right to participate in this process. For example, daqingge may go to buy several small stainless steel plants and rebuild them.

In addition, our concern for the stainless steel industry is: if the "China EU investment agreement" is reached, will the EU still have tax barriers against China?

Because the biggest achievement of the signing of RCEP this year is the promise of tariff reduction and exemption made by the 15 RCEP parties. What about this time.

The specific results can not be exaggerated, because there is still a process from the negotiation of the "China EU investment agreement" to the adoption of the European Parliament. Secondly, the "China EU investment agreement" does not involve tariffs, which may be the next step of the "China EU economic and trade agreement".

Extended reading:
In recent years, the EU has been dumping anti-dumping on stainless steel exports from the mainland of China, and the EU has imposed a high tax rate of 24.4-25.3% on the mainland of China for stainless steel.

This is also the main reason why the quantity of stainless steel exported to the EU has not increased in recent years, and the anti-dumping takes a long time, and the tax rate is high.
However, with the initial conclusion of the China EU investment agreement, the export of stainless steel may eventually "keep the cloud open".

Wuxi Hongwang is a professional stainless steel supplier. Our company has a high reputation in the stainless steel industry.

Tag: China EU investment agreement, stainless steel industry

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