Editor's Note: Happy New Year! Welcome to the first 2024 edition of CCCEU Weekly Update, designed to keep you informed about Belgium's rotating presidency of the council of the EU and its Prime Minister's reported upcoming visit to China. We hope you enjoy this read and wish you a restful weekend!

▶︎ Focus

Belgium, encompassing just over 30,000 square kilometers, slightly less than China's Hainan Province, represents a mere 0.7 percent of the land area within the European Union's 27 nations. Its population, totaling 11.8 million, comprises 2.6 percent of the EU's overall populace, which hovers around 400 million people.

Renowned as the 'Crossroads of Europe,' Belgium stands as a prosperous Western European nation, boasting a GDP per capita exceeding 47,000 euros, surpassing the EU average of 35,000 euros. The country has cultivated thriving sectors in healthcare and advanced technology, allocating a substantial percentage of its GDP to research and development, ranking among the EU's highest. Demonstrating prowess in the circular economy, Belgium achieves the EU's highest rate of recycling packaging waste.

Despite being encircled by agricultural giants like France and the Netherlands, Belgium excels in exporting renowned produce such as Belgian endives and Brussels sprouts both within Europe and beyond. Leveraging partnerships with Chinese enterprises like COSCO Shipping, Belgium's Antwerp-Bruges port has ascended to become the EU's second-largest cargo port. Moreover, in recent times, Belgium has emerged as one of the primary European markets for Chinese electric cars.

Belgium's importance in EU affairs is undeniable. It was one of the six core members of the European Coal and Steel Community, the predecessor of the EU, and is the headquarters of EU institutions, NATO, and the Society for Worldwide Interbank Financial Telecommunication (SWIFT). In this interesting country, known for producing fries, chocolate, waffles, the Smurfs, and The Adventures of Tintin, residents of the Dutch and French-speaking regions are said to be 'like water and fire', and political struggles once led Belgium to set a world record of 541 days without a government.

Drawing on Belgium's extensive experience in EU matters, the nation's 13th stint as the rotating EU presidency is anticipated to proceed smoothly. In a recent gathering last month, Charles Michel, the former Belgian Prime Minister and incumbent President of the European Council, convened with the current Belgian Prime Minister, Alexander De Croo, in Brussels. Their discussions likely encompassed a broad array of topics, potentially including China. Michel had recently journeyed to China during the China-EU Summit, and as per reports from Belgian and European media outlets, De Croo is also on the brink of embarking on a visit to China.

Belgian media sources have indicated that De Croo is slated to visit Beijing from the 11th to the 12th of this month to engage in discussions with Chinese leaders. While awaiting official confirmation of this news, given the multitude of crises confronting Europe, the spotlight is firmly fixed on Belgium's role as the EU's rotating presidency and De Croo's forthcoming visit to China. Observers keenly anticipate the potential ramifications these events may wield upon China-EU relations.

Key points of interest include the EU's anti-subsidy investigations against China. Influenced by heightened geopolitical situations, regional conflicts, and major power relations, the EU's approach to China-EU relations increasingly focuses on competition and rivalry. This has led to irrational aspects in many of the EU's policies related to China, including the politically driven anti-subsidy investigation into Chinese electric vehicles initiated by the European Commission. Although the investigation is led by the European Commission, its progress and outcomes, such as possible preliminary measures around June, will impact China-EU relations and pose challenges and pressure for Belgium as the rotating presidency of the EU.

Another significant aspect to consider is Belgium's status as a pivotal arena for global automotive corporations. Since 2021, Belgium has emerged as the primary export market for Chinese electric vehicles in Europe, with the port of Antwerp-Bruges evolving into a vital hub for automobiles across the continent. Notably, export data from the General Administration of Customs reveals that from January to October 2023, China dispatched 189,000 vehicles to Belgium, with a substantial portion constituting new energy vehicles.

In the upcoming six months, the evolution of China-EU and China-Belgium relations generates high anticipation. Earlier, Belgium, in its capacity as the EU's rotating president, unveiled its policy focus, encompassing areas such as legal infrastructure, industrial policy, environmental sustainability, social and healthcare matters, immigration and border control, as well as economic and trade affairs.

Regarding relations with China, Belgium has stated in its EU policy priorities that it will "formulate a consistent policy under the multi-faceted guidance of the EU, including strengthening exchanges and cooperation to jointly address global challenges, reducing Europe's strategic dependence, and protecting its economic interests." These statements seem to align with the EU's triple positioning towards China and the EU's strategy of 'de-risking.'

Former Belgian Prime Minister Yves Leterme, in a recent interview with CCTV's 'LEADERS TALK', discussed the importance of building mutual trust between China and Europe and opposing the 'decoupling and breaking of supply chains.'

Leterme said, 'I believe we are at a critical moment, with the relationships between the US and China, and the EU and China, at a crucial juncture. For the EU, it's essential to maintain its own stance, rather than acting as a junior partner to the US, and to have its own viewpoints. We are all part of the Eurasian continent, and we should continue to promote open cooperation, fair trade, create a level playing field for businesses, and protect investments and trade exchanges.

▶︎ Hot Topics

 >>Macron leads tribute to Jacques Delors, architect of European integration

French President Emmanuel Macron on Friday praised former finance minister and European Union leader Jacques Delors at a state funeral, saying he had "reconciled Europe with its future", France 24 has reported.

The statesman, who died aged 98 on December 27, was Brussels' driving force during the EU's greatest period of integration, the creation of the single market and the euro. "Jacques Delors never tired of... finding alternatives, of building bridges," Macron was quoted as saying at a ceremony in Paris, near the statesman's coffin draped in the French flag.

 >>Legendary German politician Wolfgang Schaeuble dies at 81

Wolfgang Schaeuble, who helped negotiate German reunification in 1990 and as finance minister was a central figure in the austerity-heavy effort to drag Europe out of its debt crisis more than two decades later, has died. He was 81. Schaeuble died at home in the evening of December 26, his family told German news agency DPA.

 >>Brussels to unveil economic security package on Jan. 24

The Euroepan Commission is scheduled to release its long-awaited "economic security package" on January 24. The package will consist of six items, according to its website, namely Communication on economic security, foreign direct investment screening regulation, a white paper on export controls, an initiative on outbound investments, a council Recommendation on research security and another white paper on dual use research.

  >>INTA seeks to end China's "developing country" status at WTO

On Friday, a document from the European Parliament's international trade committee showed that it seeks to promote changes at a WTO ministerial meeting, China-related matters for two places, one is to accuse the Chinese side of the so-called "non-reciprocal" trade behaviour; the second is to mention that China should not be regarded as a developing country.

 >>Global minimum corporate tax applies in EU

Ground-breaking new EU rules come into effect on January 1 introducing a minimum rate of effective taxation of 15% for multinational companies active in EU Member States, said the commission.

The rules will apply to multinational enterprise groups and large-scale domestic groups in the EU, with combined financial revenues of more than €750 million a year. They will apply to any large group, both domestic and international, with a parent company or a subsidiary situated in an EU Member State.

  >>China to send 'huge' delegation to Davos: media

French media has reported that China will send a "large" delegation to the annual Davos conference in Switzerland in January. Chinese Premier Li Qiang will be the highest-ranking Chinese official to attend the global business event since 2017. China will send an "unusually large" high-level delegation, including officials from the economic and foreign affairs administrations, the French broadcaster said. China's participation in the annual meeting in Davos is aimed at emphasising its "openness to the outside world and easing some external pressures". China has not yet confirmed the reports.

  >>China's BYD is selling more electric cars than Tesla

BYD overtook Tesla to become the world's biggest electric car company in the final quarter of 2023, CNN reported.

The Chinese company sold a record number of cars last year, including 525,409 battery electric vehicles (BEVs) in the three-month period to December 31, according to a stock exchange filing. Tesla said Tuesday it delivered 484,507 — also a record — during the quarter.

  >>Euro zone inflation jump cools case for ECB rate cuts

Euro zone inflation jumped as expected last month, supporting the European Central Bank's case to keep interest rates at record highs for some time, even as markets continued to bet on a rapid fall in borrowing costs, Reuters reported.

Inflation across the 20-nation bloc jumped to 2.9% in December from 2.4% in November, just shy of expectations for a 3.0% reading, mostly on technical factors, such as the end of some government subsidies and low energy prices getting knocked from base figures.

▶︎ What are experts talking about？

EU Foreign Economic Law Shows Significant Transformation Trend

Source: Economic Daily News/European Law Research

Author: Ye Bin, Director of EU Law Research Office, Institute of European Studies, Chinese Academy of Social Sciences (CASS)

In recent years, the EU has introduced a range of external economic regulations, spanning from the foreign investment screening regulation, foreign subsidies regulation, international procurement instrument, corporate sustainability due diligence regulation, anti-coercion instrument, to the economic security strategy of June 2023. These measures aim to adapt to the shifting international geopolitical landscape. Unlike traditional trade regulations like anti-dumping and anti-subsidy rules governed by the WTO, these new unilateral measures of the EU transcend the regulatory boundaries of standard trade rules. They are establishing a framework of external economic laws, encompassing investment regulation, international public procurement, supply chain regulations, and trade measures countermeasures, reflecting a broader and more comprehensive approach to international economic governance.

The EU's external economic laws are adapting to China's increasing global influence in new energy, artificial intelligence, and the digital economy. Shifting from market openness to "reciprocal" and "selective" openness, these laws now emphasize sustainable development, fair competition, and economic security. This policy realignment aims to bolster the EU's economic and technological competitiveness amid global shifts. Within the EU's approach to China-related foreign economic law, factors of competition, prevention, and confrontation are intensifying, constraining opportunities for bilateral cooperation. This transformation in the EU's economic laws largely reflects the repositioning of China-EU relations.

6 ways to unleash the power of AI in manufacturing

Source: World Economic Forum, Davos Agenda

Author: Jasmeet Singh, Executive Vice President, Global Head of Manufacturing and Chair Infosys Public Services and Infosys Automotive GmbH, Infosys

There is no doubt that manufacturers are making huge commitments to AI. According to estimates, the global AI in manufacturing market was valued at $3.2 billion in 2023 and is poised to grow to $20.8 billion by 2028.

Despite these possibilities and significant investments, manufacturers are not harnessing the full potential of AI. Once manufacturers address the key challenges in AI deployment, they can transform every aspect of their business for the better.

While there is no limit to AI applications in manufacturing, below are some of the most exciting use cases: 1. Safe, productive and efficient operations; 2. Intelligent, autonomous supply chains; 3. Proactive, predictive maintenance; 4. Automate quality checks; 5. Design, develop, customize and innovate products; and 6. Empowering employees.

Please note: the English version of this issue is slightly different from our Chinese one. The views and opinions expressed in this article do not necessarily reflect the official position of the CCCEU.

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