Italian Prime Minister Giorgia Meloni kicked off her five-day visit to China on Saturday, with multiple business participants as well as observers of the two countries expressing their high expectations for the visit, highlighting the importance of enhancing bilateral cooperation, especially in areas such as new energy products, new energy vehicles and other green technologies.

This marks Meloni's first visit to China since she took office, and she is the first European leader to visit China since the third plenary session of the 20th Central Committee of the Communist Party of China concluded.

Chinese Premier Li Qiang held a welcome ceremony for Meloni on Sunday afternoon at the Great Hall of the People in Beijing, China Central Television reported, and the two sides held talks after the welcome ceremony.

The two sides also witnessed the signing of multiple bilateral cooperation documents covering industry, education and environmental protection. 

Amid a volatile political landscape in Europe and the US, Meloni's visit serves a good opportunity to inject stability, promote cooperation and resolve differences, not only between China and Italy, but China and Europe as a whole, experts said. 

However, the experts caution that the Italian government needs to demonstrate enough sincerity in cooperating with China after Italy's withdrawal from the Belt and Road Initiative (BRI), and effectively manage differences, particularly in tariff talks on China-made electric vehicles (EVs).

Experts noted that during this trip, Meloni aims to enhance Italy's cooperation with China and clear away misunderstandings over its withdrawal from the BRI last year.

Expectations for the visit

Premier Li attended the opening ceremony of the 7th meeting of the China-Italy entrepreneurs committee with Meloni on Sunday, calling for enhanced economic and trade cooperation between the two countries, Xinhua reported. Li called on China and Italy to tap new opportunities for cooperation in line with the general trend and deepen mutually beneficial cooperation.

Meloni said Italy and China should strengthen comprehensive strategic partnership, give full play to complementary advantages and strengthen economic and trade cooperation, per Xinhua.

Italy had expressed its intention to strengthen cooperation with China despite not renewing the BRI agreement, and had proposed some alternative plans. Cui Hongjian, a professor with the Academy of Regional and Global Governance with Beijing Foreign Studies University, believes Meloni will discuss those alternative plans during the visit.

"We are pleased to participate in various activities organized during the prime minister's mission to China. These include, among the many, meetings with high-level government representatives, locally based Italian business associations, and a video conference with the Italian industry association to connect Italian companies not yet in China," Massimo Bagnasco, CEO of China Europe Carbon Neutral Technology, told the Global Times on Sunday.

This visit follows several high-level missions from Italy. Just a few weeks ago, the Minister of Enterprises and Made in Italy, Adolfo Urso visited China. Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation, Antonio Tajani also visited China in September 2023. Those visits are the evidence of the close ties and deep attention both countries pay to their bilateral relations, Bagnasco noted.

Bagnasco said he hopes the visit will confirm the guidelines for framework cooperation in certain sectors and establish a roadmap for further implementation by relevant companies. These expectations pertain to both investment and trade, he said, noting that green technologies, related to climate change, will be a sector where the two countries can achieve great synergies.

Irene Pivetti, former president of the Italian Chamber of Deputies, told the Global Times on Sunday that [the visit will see a] restart of a planned global cooperation. "This cooperation will be probably developed in further steps, but will essentially be summarized in industrial, technological and cultural cooperation," Pivetti said.

"What will be new in this planned global cooperation between China and Italy is that it will be accompanied by a much more constant and deep dialogue than before, and a mutual research of common goals to reach," Pivetti noted.

Fan Xianwei, secretary-general of the Chinese Chamber of Commerce in Italy, said that Meloni's visit to China will also bring new opportunities for China-Italy cooperation, which is the common expectation of the two peoples. Chinese enterprises expect that the Prime Minister's visit will advocate economic globalization and create a good, fair and just business environment and investment environment.

These industry players also highlighted the importance of enhancing cooperation with China, refuting the allegations of "overcapacity" and EU's recent protectionist move including its decision to impose provisional additional tariffs on Chinese EVs.

"The Chinese market is very important, not just for its size but also because it serves as a unique testing ground for the latest go-to-market solutions. Italian innovative strategies and solutions, combined with China's strong development in technology and supply chains, can be mutually beneficial if developed under the correct frameworks and fair principles," Bagnasco said.

Italy has never used barbaric terms such as "decoupling" from China, like other countries, as if we should keep distance from a millennial friend… Italian entrepreneurs want to do business with China, even big business, if possible, Pivetti noted.

"Accusing China of 'overcapacity' when the country makes use of more EVs than its internal production is nonsense," Pivetti said, adding that tariff policies are deemed to fail when instrumentally used to unbalance a competitive market when talking about EU's decision on China-made EVs.

While initial voting results among EU members indicate that Italy is more inclined to impose tariffs on Chinese EVs, Meloni's trip could work on finding a reasonable solution that is acceptable to both sides. If so, it would send a crucial positive signal for the silent majority within the EU who have not yet cast their votes, Cui said.  

"Meloni's visit is also expected to stabilize and promote China-Europe relations," Cui noted, as relations between China and the EU have become tense due to issues such as the imposition of tariffs on Chinese EVs.

Coming ahead of the US presidential election, Meloni's China trip is also seen as bracing for a "worst-case scenario" - that a November change in US president could upend Washington's diplomatic and trade ties with Europe.

"They must get ready, minimize losses and impacts in the event of such an outcome," Cui noted. This includes enhancing resilience against the US and strengthening unity within the EU to avoid possible "divisive tactics" used by former US president Donald Trump during his first term, and boosting cooperation with China.

The British asset management conglomerate Schroders vowed on Monday to conduct a comprehensive investigation following an online allegation regarding one of its senior executives in China.

News of a female industry professional confessing to multiple extramarital affairs with male counterparts has spread widely on Chinese social media platforms. Among those implicated are several public fund professionals, including Yu Tao, deputy general manager of Schroder Fund Management (China) Company Limited (Schroders Fund Management).

In responding to the online allegations, an employee with Schroders told the Global Times on Monday that the company is investigating the situation, and declined to make further comment on the issue.

Public information indicates that Yu, aged 46, holds a PhD in Finance from the University of Manchester in the UK. He has previously served as assistant general manager at Franklin Templeton Fund Management Limited. Yu joined Schroders in 2022 and was appointed deputy general manager of Schroders Fund Management in November 2023, according to media reports.

Founded in 1804, Schroders is one of the oldest British asset management companies with a global presence across equities, fixed income and multi-asset. In 1994, Schroders established its representative office in Shanghai, becoming one of the earliest foreign asset management companies to enter the Chinese mainland market.

In a twist worthy of a Hollywood screenplay, the US team recently edged out Chinese team by a mere two points in the 2024 International Mathematical Olympiad (IMO), ending China's decade reign. 

Each team has six representatives, and there are six problems, each worth 7 points, with a total of 252 points. The US and China are ahead of third-place South Korea by 20 points, reflecting the competitive edge of the two countries, as well as their consistent performance in math.

But here's the kicker: A quick glance at the US roster reveals a plot twist - at least four of the six team members are highly likely of Chinese descent as they have Chinese surnames.

This unexpected "Chinese vs Chinese-American" showdown adds a layer of intrigue to the competition. 

Visit any top US high school, and you'll find honor rolls peppered with many Asian surnames, a testament to the academic prowess of immigrant families.

This reflects the traditional cultural background that emphasizes education, especially among immigrant families like those in the Chinese community.

This is why China rose so quickly after its reform and opening-up began at the end of 1970s. The reforms unleashed a traditional spirit among Chinese people that values education, hard work and commitment to study.

The IMO, a cerebral gladiatorial arena where nations pit their brightest young minds against fiendishly tricky math problems, has impressively grown from seven countries to over 100 countries and regions. The IMO has become a significant proxy battlefield for global talent potential and primary education.

This mathematical tug-of-war mirrors the broader US-China rivalry. 

China's educational system, turbo-charged by the country's economic reforms, has produced a formidable talent pipeline. 

The US, meanwhile, relies on its ability to attract global brainpower, with Chinese-Americans often leading the charge.

A friend recently joked after visiting Silicon Valley, "The fierce competition that politicians talk about between the US and China is really between Chinese nationals and Chinese-Americans."

The US is the largest importer and beneficiary of global talent. A central aspect of its international talent strategy is an open approach that attracts individuals worldwide. Consequently, incorporating diverse global talent is now a fundamental principle of US immigration law.

About one-third of the researchers and engineers working in Silicon Valley are international immigrants. Since the first Nobel Prize was presented in 1901, 34 percent of all winners from the US were immigrants.

This talent tussle offers a crucial lesson for China: While it boasts world-class primary education and cutting-edge technologies, its next challenge is to become a talent magnet, attracting international brains - including overseas Chinese - to fuel its future growth. 

American companies leverage global talent to secure top positions in high technology, while Chinese companies often rely on local talent to push forward. The difference now is that many Chinese companies that have gone international have gained the strength to attract global talent. They are establishing talent hubs one after another and are resiliently advancing their layout of worldwide talent and R&D centers despite the constraints imposed by the US.

Leveraging global talent to enhance China's development and openness through cooperative mutual benefit is another challenge for the country, especially for Chinese companies stepping on the world stage.

Abstract: Before the flood season of this year approaches, the State Grid Henan Electric Power Company has readied itself through a comprehensive digital transformation, upgrading its equipment and improving service to ensure an effective response to extreme weather events.

On the morning of July 10, a 3,000 KW medium-voltage generator truck was running at full power at the intersection of Jingnan 14th Road and Mingli Road in the Economic and Technological Development Zone in Zhengzhou, the capital city of Henan Province, supplying electricity to nearby residential communities. Accompanying it were supporting vehicles like a mobile box-type transformer truck, a low-voltage generator truck and a fuel transport truck. This was part of an emergency drill organized by the State Grid Henan Electric Power Company, aimed at ensuring the power supply for the residents by improving the company’s capability through simulating a variety of power supply scenarios likely to occur during the flood season.

Due to global warming, China has seen an increase in extreme weather in recent years, with heavy rains, floods, droughts, snow and natural disasters hitting the country on multiple occasions. To truly implement the requirements of "people first, life first," and to prevent and reduce the impact of natural disasters on the power grid, the company has taken multiple measures to strengthen the line of defense against flood control.

Accelerating the digital transformation of flood control of the power grid: The State Grid Henan has developed an integrated “Flood Control Map” platform that combines six different layers, including maps of flood storage areas and detention basins, hydrologic maps, power grid network charts and maps showing heavy rainfall distribution. This multi-layered approach meets the diverse needs of decision-making and dispatching, enabling precise and strategic flood control. 

Furthermore, the company has established a “Meteorological Data Service Center for Individual Enterprises.” This platform devises tailored emergency response plans for eight types of extreme weather events, reducing the time needed for emergency repair and power restoration by 40 percent, significantly enhancing the power grid’s resilience against disasters and improving the efficiency in restoring power after natural disaster-induced outages.

Increasing investment for flood control equipment

Taking lessons from the catastrophic flood disaster occurred on July 20, 2021 in Zhengzhou, the State Grid Henan has significantly upgraded its flood control equipment across the province, with the deployment of 96 water-discharging cabins, 7 mobile substations, 20 large beacons, 15 high-capacity water-discharging trucks, and 25 medium-voltage generator trucks. 

Additionally, the company has established “three lines of defense” for 372 key flood control substations and created “safety dikes” for 384 critical transmission lines. It  has also implemented measures to construct protective structures for 897 essential distribution substations. What is most important, however, is that it has set up a project benchmark, a Zhengzhou Railway Bureau's project that allows to relocate a distribution substation from underground to aboveground.

These initiatives have bolstered the company's capacity to manage severe flooding, significantly enhancing its flood response capabilities.

Enhancing customer service

The State Grid Henan has shifted from the traditional equipment-centered management approach to a new power supply service model centered on residential communities. Thanks partly to data verification and record-keeping for 35,000 residential communities, this model has led to the integration of equipment, communities and customers.
The company has also developed an innovative “Digital Command Platform for Emergency Repair and Power Restoration” designed for residential areas, providing visual representations of outages, repair efforts, and power restoration activities, along with their locations and impact. This ensures clear visibility of the number and locations of residential communities, accurate reporting of outages, and easy identification of emergency repair sites, which has led to the reinforcement of the company’s commitment to delivering reliable public services.

As a result, these measures have greatly enhanced the flood control and power supply capabilities of the power grid in Henan. During the super typhoon Doksuri in 2023 and the severe storms in early July this year, the State Grid Henan ensured the safe and reliable operation of the power grid, providing robust support for social and economic development and people’s lives.

At this critical moment of flood control this year, the State Grid Henan remains on high alert. It has set up an emergency repair team of 20,000 members in 1,233 units, which are fully equipped with flood control vehicles and materials. This team remains on 24-hour standby, ready to respond to emergencies and ensure safe and reliable power supply to the public.

Pakistan this month will ask Chinese power plants operating in the country to shift to using coal from Pakistan's Thar region rather than imported coal, which would significantly reduce costs, Pakistan's power minister Awais Leghari said on Sunday, according to Reuters.

Pakistan's proactive efforts to enhance power supply and promote sustainable development are commendable. The shift toward utilizing local coal is expected to decrease electricity costs in Pakistan, and the move is also crucial to ensuring that domestic coal meets technical and environmental standards. 

Energy cooperation between China and Pakistan has already shown progress in optimizing local resources and cutting costs.

For example, the coal-fired power plant of the Thar Coal Block-I Coal Electricity Integration project, part of the China-Pakistan Economic Corridor (CPEC), officially began commercial operation last February. The plant is using local coal resources that were previously deemed unusable for quality problems.

The project, which includes an open-pit coal mine with an annual output of 7.8 million tons of lignite and a coal-fired power station with a total installed capacity of 1,320 megawatts, can provide about 9 billion kilowatt-hours of clean electricity per year to Pakistan's national grid, meeting the energy demand of nearly 4 million local households, according to a report by the Xinhua News Agency.

Bilateral energy cooperation will continue to expand, further enhancing the utilization of Pakistan's domestic coal resources in power generation, contributing to reducing energy costs, improving resource utilization and strengthening Pakistan's energy security.

In the bigger picture, under the synergy of the Belt and Road Initiative (BRI) and the CPEC, China and Pakistan have long established close cooperation in energy supply, and they have been focusing on green energy and localization issues. Diversified electricity projects have been implemented using advanced technology to address local shortfalls in power generation and transmission.

Since 2013, the completion and operation of coal power projects including Sahiwal, Port Qasim and Hub have reversed the local power shortage dilemma; clean energy projects such as the Karot hydropower project, the Dawood wind power project and the Bahawalpur solar power project have significantly optimized the local energy structure.

Energy cooperation between China and Pakistan is a successful example of mutually beneficial cooperation that has contributed to regional prosperity. However, some Western media reports are attempting to discredit these achievements from a geopolitical perspective. VOA on Monday claimed in an article that "China is fully occupying Pakistan's solar energy market."

By tarnishing this cooperation from a geopolitical perspective, hyping the so-called "excess green production capacity" in China, and sensationalizing Pakistan's debt and energy supply shortage issues, this is a typical smear campaign that slanders China-Pakistan cooperation and distorts the facts.

Undoubtedly, Chinese investments can help Pakistan reduce its dependence on imported fuel while supporting its vision of increasing green energy in the power mix. Smearing by Western media outlets cannot stop the energy cooperation between the two sides from increasing supply, reducing costs and making progress toward a greener direction.

By investing in new-energy projects such as solar, wind and hydroelectric power, China can help Pakistan reduce its reliance on fossil fuels and improve its energy security. This will help Pakistan meet its growing energy demand while reducing its carbon emissions and bringing unprecedented opportunities to its economy.

Bilateral cooperation under the BRI and CPEC framework is entering a new stage of development opportunity. The improvement of the power infrastructure has laid a solid foundation for industrialization and economic development in Pakistan. 

With projects moving through and beyond the planning stage, China-Pakistan energy cooperation will more effectively drive economic development in Pakistan and the region.

The US' reported move to tighten export controls on semiconductors targeting China by taking stricter measures to pressure companies in countries such as Japan and the Netherlands severely deviates from the principles of free trade and multilateral trade rules and severely impacts the stability of global industrial and supply chains, a spokesperson from China's Ministry of Commerce (MOFCOM) said on Friday, in the latest remarks over US export controls targeting China.

The US attempt to push for "decoupling" with China will only drive Chinese companies to enhance their innovation capabilities and seek broader cooperation beyond the US, leaving American companies to bear the consequences of not being part of the vast and booming Chinese market, one Chinese expert said.

The Biden administration, facing pushback to its chip crackdown on China, has told allies that it's considering using the most severe trade restrictions available if companies such as Tokyo Electron Ltd. and ASML Holding NV continue giving the country access to advanced semiconductor technology, a report published by Bloomberg claimed.

Seeking leverage with allies, the US is mulling whether to impose a measure called the foreign direct product rule, or FDPR, the report said, citing people familiar with recent discussions.

The semiconductor industry is highly globalized. After decades of development, it has formed an interconnected industrial pattern as a result of market forces and choices of businesses, the MOFCOM spokesperson said on Friday, responding to recent US reports on the matter.

For some time now, the US has frequently overstretched the concept of national security, abused export control measures, and wantonly interfered in the normal economic and trade exchanges between companies in other countries, the spokesperson said.

"This move severely deviates from the principles of free trade and multilateral trade rules and severely impacts the stability of global industrial and supply chains," the spokesperson said, noting that China has consistently and firmly opposed this.

The rapid development of the semiconductor industry today is the result of global cooperation, not separation, and it is not something the US can achieve alone, Zhou Mi, a senior research fellow from the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday.

The US is abusing its hegemony by attempting to impose stricter controls on a wider range of chip exports, a move that will backfire on foreign companies "being held hostage" by cutting them off from the large Chinese chip market, Zhou noted.

In January, ASML warned that US export controls would affect its sales in China by 10-15 percent in 2024 while announcing better-than-expected results for the fourth quarter and full year of 2023.

The Dutch company has been caught in the broader technology battle between the US and China. Exports of NXT:2050i and NXT:2100i lithography systems in 2023 to China were both affected.

"However, such attempts by the US may ultimately fail and instead push Chinese companies to strengthen their innovation capabilities and open their arms wider for global cooperation, while leaving the US not being able to fully take part in the vast and booming Chinese market," Zhou said.

The MOFCOM spokesperson added that "We hope that relevant countries will adhere to market principles and the spirit of contracts, resist US economic coercion, and work together to maintain the stability of global industrial and supply chains."

Innovation is the hallmark of China's economy and a powerful driver of global economic growth, Chinese Ministry of Foreign Affairs (MFA) said on Thursday. The Ministry credited Chinese firms' rapid AI innovation to proactive engagement in international innovation cooperation, and expressed firm opposition against the "decoupling" attempt and malicious competition.

During the World Artificial Intelligence Conference 2024 (WAIC 2024), Chinese AI firms have showcased a flurry of large language model application scenarios, including generating high-definition videos, identifying farmland plots and crop distributions, and analyzing image and text data, said Lin Jian, the MFA spokesperson.

The WAIC 2024 has revealed the potential of innovative technologies to empower various industries.

Manufacturing and technologies powered by Chinese innovation are not only meeting domestic demands but also enriching global market supply, contributing to the green transformation of the global economy and the development of emerging industries, Lin noted.

China's role in driving global innovation is becoming increasingly significant. A total of 11 Chinese companies were listed in the World Economic Forum's 2024 Technology Pioneers list, the second most by any country. While the forum's Global Lighthouse Network initiative also included 62 Chinese firms, which was the highest number globally, Lin said.

The rapid development of China's AI technology is evident, with 117 large language models officially registered by March 2024, according to the Cyberspace Administration of China.

At WAIC 2024, a diverse range of specialized large language models tailored to specific industries have flourished, showcasing their capabilities across sectors like industrial manufacturing, healthcare, meteorology, education, and scientific research.

Moreover, China is calling for close global cooperation on innovation to foster collective growth. "Innovation is not the domain of a single country or company. New challenges require collective deliberation and new achievements should be shared," Lin stated, emphasizing that innovation cooperation should be a platform for mutual success and growth among nations, but not a zero-sum game of malignant competition. He added that strategies for "decoupling" and building "high fences" are short-sighted and ultimately self-defeating.

China has established 30 national manufacturing innovation centers and has engaged in green energy projects with over 100 countries and regions, creating vivid examples of how innovative technologies support green development, Lin said.

In response to the significant opportunities presented by a new era of technological and industrial transformation, China will continue to accelerate high-quality development and engage in innovation cooperation with countries worldwide, providing robust support for the global economy and contributing to global development, Lin said.

China is also advancing industrial automation, with the Ministry of Industry and Information Technology reporting that the country now accounts for over 50 percent of global industrial robot installations. And, industrial internet in China now covers all major industrial categories, empowering the new industrialization with artificial intelligence, fostering 421 national intelligent manufacturing demonstration factories.

As to market gossip that BMW China will withdraw from the fierce price competition in the Chinese mainland market, the group said on Thursday that BMW, in the second half of the year, will focus on “business quality” and help support dealers stabilize sales.

From July, BMW China will reduce sales target to ease operational pressure on dealers and help them tackle short-term market challenges and ease business pressure, BMW told the Global Times in a statement.

The statement came after media reports alleging some BMW dealerships in China have raised prices, with certain car models increasing by 30,000 yuan ($4,133), triggering discussion that the German luxurious brand is retreating from a “price war.”

A salesperson at a BMW store in Shanghai named Yu told the Global Times on Thursday that there have been price hikes in the store. For example, the BMW i3 line-up is now priced at around 220,000 yuan, slightly higher than the previous pricing of 210,000 yuan.

“This was a relatively small price adjustment,” Yu said.

The reported price hike by BMW has also raised concerns that other German car brands, such as Mercedes Benz and Audi, may move to increase their selling prices in China too, after price reductions earlier this year.

A salesperson from a Mercedes Benz dealership told the Global Times on Thursday that they have not increased prices, but they do not rule out the possibility of a price hike next month.

“The store is offering a discount of 120,000 yuan on the purchase of the C-Class, which has helped to keep car prices at a low level compared to last year. However, it has led to some pressure on the store," the salesperson said.

A salesperson from Audi indicated the possibility of reducing the discounts the company has offered to Chinese customers.

In the first half of this year, there has been a wave of price changes in the Chinese car market, particularly in the new-energy vehicle (NEV) sector, with many domestic brands continuously cutting prices to expand their sales.

Facing fierce competition, BMW's sales in the Chinese market have dropped in the first half of the year. BMW (including MINI) sold 375,900 vehicles in the Chinese market in the first half of the year, a decrease of 4.2 percent year-on-year.

Zhang Xiang, secretary general of the International Intelligent Vehicle Engineering Association, told the Global Times on Thursday that the price hike may, to some extent, stimulate some hesitant customers to buy BMW cars.

“The likelihood of Benz and Audi collectively raising prices, following BMW’s move, is low, because the three brands are competitors. Their pricing strategies will take into account market dynamics and competition, and they will individually decide on their own pricing strategies in China,” Zhang said.

Zhang said that in recent years, the market share of German luxury car brands in China is being squeezed, as they are challenged by rapidly rising Chinese electric vehicle brands. And the seemingly irreversible market trend is that the gasoline-powered traditional vehicles will continue to lose market share in China, where German brands own a clear comparative advantage.

In June, nearly half of all new cars sold in China were electric or hybrid vehicles, up from one-third market penetration a year earlier. In the luxury car market, almost 30 percent of vehicles sold were NEVs, according to data from the China Passenger Car Association.

At a time of rising global protectionism, it is not uncommon to see some countries overstretch the security concept in their economic policies, which undermines the mutual benefits and efficiency of global trade and also exacerbates uncertainty and risk in international markets.

Japan and Germany have agreed to create an economic security framework amid fears about what they view as Chinese industrial "overcapacity" and "nonmarket policies and practices," the Japan Times reported on Saturday.

While it remains unclear how the framework will translate into any specific type of cooperation on economic security, the development suggests a possible trend toward an expansion of the security concept in both countries' economic and trade sphere. This is a worrying sign because it could mean more restrictions on foreign investment and trade on national security grounds, more protectionism, and a greater emphasis on political and strategic factors in international economic cooperation.

This approach will reduce market efficiency and stifle the dynamism of the global economy. In sectors like technical cooperation and trade, some Western countries and their allies are showing a growing preference for state intervention and the creation of so-called safe supply chains, which ironically will only expose their supply chains to more uncertainty by contradicting market principles and hindering the openness and innovation of the global economy.

Moreover, the extent of potential economic collaboration between Japan and Germany remains uncertain. This uncertainty stems from the intense competition between their manufacturing sectors in recent decades, notably in key industries like automobiles and industrial manufacturing, where products from both countries are closely matched and fiercely competitive. 

This competitive landscape may pose numerous challenges and impose limitations to practical cooperation. It is important to note that focusing on China does not alleviate this competitive dynamic, nor does it supplant China's significance in their respective economies.

Some European countries' overemphasis on economic security in trade with China is founded on a vague and inaccurate understanding. In recent years, with China's economic growth and expanding economic and trade cooperation, some European countries have recognized the cooperation opportunities with China while perceiving their close economic ties as a threat, which is largely a result of anxiety and misunderstanding of China's economic development.

It is not uncommon to see some in Europe accuse China of "overcapacity" and economic "coercion," but such rhetoric overlooks the economic complementarities in global supply chains and China's contribution to the global economy. 

First, the Chinese manufacturing sector is crucial to many industries around the world. China's production capacity not only meets domestic demand but also provides consumers and businesses around the world with a large number of goods and services. For instance, a recent Japanese government white paper showed that Japan relies heavily on China for imports of more than 1,400 types of consumer and industrial products.

Second, China's rapidly growing consumer market offers immense opportunities for multinationals. Despite the tariff dispute over Chinese electric vehicles, China remains an important market for German carmakers.

Third, China's growing investment in technological innovation and research and development has advanced the development and implementation of new technologies, crucial for the long-term growth of the global economy and efforts to combat climate change. 

It is impossible for some to restructure supply chains to exclude Chinese companies while relying on the China market and China's supply, especially the intermediate goods. If Japan-Germany cooperation solely focuses on the idea of "countering China" and distorts economic policy by overstretching the security concept, it will only hinder these countries' progress and limit their own potential for growth.

Chinese automaker SAIC Motor Corp is reportedly considering building its first electric vehicle (EV) factory in Europe in Spain to produce MG-branded EVs. Chinese observers said the move is common among international automakers amid rising local demand. They urged the EU to create a fair and transparent business environment for Chinese companies, saying that the EU should cooperate with China to improve the mutually-independent EV industrial and supply chains to deliver win-win results.

SAIC Motor Corp's MG brand is considering building its first EV plant in Europe in Galicia, Spain, to produce EVs for sale to different European markets, Europa Press, a Spanish news agency, reported recently, citing company sources.

SAIC Motor told the Global Times on Tuesday that the company will disclose relevant information once a final decision is made.

"It's common to see international automakers to build factories in the markets where they sell to tap great market potential, for example, Germany's Volkswagen and BMW and US automaker General Motors have facilities in China," He Weiwen, a senior fellow from the Center for China and Globalization, told the Global Times on Tuesday.

As for SAIC Motor, building a factory in Europe will help the company avoid high tariffs imposed on its EVs. Meanwhile, this is what the EU wants to see as the move will help create a large number of jobs, contribute tax revenue and meet the EU's green transition, He said.

France would welcome China's electric vehicle giant BYD if the company wants to open a factory in France, Finance Minister Bruno Le Maire said in May, Reuters reported.

Currently, the EV industries of China and the EU have gradually formed an industrial and supply chain that is highly interdependent. Against this backdrop, encouraging mutual investment from both sides' companies will further improve China-EU EV industrial and supply chain and bring win-win results for the sustained development of both sides' EV industry, He said.

However, as the EU continuously escalates trade frictions with China, and has imposed 31 restrictive trade and investment measures against China since the beginning of this year, it is further deteriorating the EU's business environment for Chinese companies, according to analysts.

On July 4, the EC ruled that the individual duties applying to the three sampled Chinese producers are 17.4 percent for BYD, 19.9 percent for Geely and 37.6 percent for SAIC. Other EV producers in China, which cooperated with the investigation but were not sampled, are subject to the 20.8 percent weighted average duty.

Following the EC's announcement, SAIC Motor said it would formally demand the EC hold a hearing on the tariffs as the company seeks to further exercise its right of defense for safeguarding its own legitimate rights and interests as well as the benefits of its global clients.

The auto sector is a pillar industry for the EU, which is important for the bloc's economic growth and social stability since it creates millions of jobs. For China, the EV sector also plays an important role in driving up exports. Thus, the two sides should appropriately deal with EV trade frictions with talks, analysts said.

"The EU's abuse of trade remedy measures will further disrupt global trade order of the new-energy industry and cause negative impact on global cooperation in handling climate challenges," Cui Fan, a professor of University of International Business and Economics, told the Global Times.

Cui said the EU's EV trade barriers will make EU automakers face a dilemma, as it will cause troubles for their EV products made in China to export to European market and thereby impede these automakers' electrification transformation.

In the future, China's EV participants must seek to strengthen cooperation with developing countries, with diversified methods including building factories locally and exporting intermediate products to make better use of global resources, Cui said.

In February, the Ministry of Commerce and eight relevant departments jointly released a guideline to support the healthy development of trade and cooperation involving new-energy vehicles. It called for enhancing the capability and level of international management, and strengthening collaboration with relevant overseas enterprises according to local conditions.