After signing EU-China Comprehensive Agreement , there may be another agreement changing China’s market and its future by the end of the year of 2020.
This agreement has been negotiated for about 7 years, and been through over 10 rounds. On 30th December, the leader from China and EU announced that the negotiation of EU-China Comprehensive Agreement on Investment was completed on time.
Currently, no more details are on disclosure. But judging from previous negotiation, the influences on whether the Chinese products can be exported to EU will be as follows:
If this agreement is successfully signed, China will attract more investment from Europe. On the contrary, more investment from China will flow to Europe. In 2019, the Chinese investment towards Europe has fell about 78.63%. And one key reason is that there are many restrictions from EU stopping Chinese investors. But after EU-China Comprehensive Agreement on Investment was signed, the restrictions will be reduced, and more advantages will be brought by Chinese companies.
Will Chinese stainless-steel industry be influenced?
The answer will be YES. This agreement will allow Chinese stainless steel be easier to export to Europe.
People who familiar with situation says that the estimated values of EU companies are harshly went down, and they were in urgent need of new fresh investment after COVID-19. Therefore, there will be a surge for cross-border mergence and acquisition. For private enterprises like Tsingshan, Yongjin and other companies which dare to take a chance, it will be a good opportunity for them.
Another people agreed with this statement, and he says that EU will adjust its whole industry chain, and restructure certain sessions during manufacturing. Some of them suggest setting up the manufacturing industry in the countries with lower cost in land and labor. And China may get some rights to get involved in. So, it is possible for Chinese companies to acquire and rebuild some small stainless-steel factory.
And another concern for stainless steel industry is whether tariff barrier will be remained once the agreement is signed?
For the signed RCEP, one of its fruitful achievements is that 15 member countries promised to cut down the tariff. How about this agreement?
It would be exaggerating if saying that the tariff barrier would be canceled, because there will be a progress from completion of negotiation to the adoption by EU Union. Besides, the tariff is not involved in this agreement, and this issue may be concerned with EU-China Economy and Trade Agreement on Investment.
In recent years, EU is imposing anti-dumping duties towards Chinese stainless steel. Currently, the levied rate is about 24.4% to 25.3%.
Due to long-time anti-dumping duties and high rate, the export of stainless steel to Europe reduced a lot in recent years.
However, since EU-China Economy and Trade Agreement on Investment was completed in 1st phase, the hope for the export of stainless steel can be expected.