Latest Statement from the Ministry of Commerce: The EU's "Europe First" Policy Sparks Anger; Negotiations on $30 Billion in Tariff Cuts between China and the US are in Progress
Hello everyone, I'm your financial commentator. Today, we're going to discuss several important messages released at the regular press conference of the Ministry of Commerce on September 17th. These news stories may seem far from our daily lives, but in reality, they directly affect the prices of imported goods we buy, the success of Chinese companies overseas, and the overall direction of the global economy.
The press conference focused on two main topics: first, the EU's new "Europe First" policy, which excludes companies from third countries like China; second, the ongoing negotiations between China and the US regarding a mutual reduction of tariffs by $30 billion.
Let me break down these issues into five key points in plain language to help you understand the implications.
1. Who is the EU's "Europe First" Policy Really Targeting?
Let's start with the EU's actions. Recently, the European Commission introduced a new "Public Procurement Act" that includes a key clause called "Europe First."
Simple Explanation:
It's like a neighborhood deciding to conduct internal purchases or distribute benefits. Previously, anyone could buy, but now the new rule states: "Only residents of the neighborhood (EU member states) or those with special agreements (FTA partners) are allowed to buy. Others (like China, the US, etc.) are either excluded or forced to pay a higher fee, or even completely denied entry."
Why is this happening?
The EU claims it's for "cybersecurity" and "industrial development," but the Ministry of Commerce spokesperson He Yadong pointed out clearly: This is a form of trade protectionism under the guise of security.
Who is it Affecting?
It mainly affects Chinese companies that want to win contracts with EU governments. For example, if a Chinese company wanted to provide IT systems, communication equipment, or infrastructure services to an EU agency, it used to win the bid based on its quality and price. Now, because it's from a "third country" (not part of the specific procurement agreement), its qualifications are restricted, and non-market factors (such as political stance or security reviews) may also be considered during the bidding process.
2. Are Chinese Companies Facing Increasing Difficulties in the EU?
The news mentions some concerning figures from the "China Enterprises in the EU Development Report 2025/2026":
Data Analysis:
- 81% of Chinese companies surveyed feel that the business environment in the EU has become more uncertain.
- This level of uncertainty has been worsening for six consecutive years.
- 40% of Chinese companies have experienced differential treatment due to their Chinese origin.
What Does This Mean?
It indicates that Chinese companies are increasingly treated as outsiders in the EU market. While there used to be a focus on "fair competition," the EU is now implementing discrimination based on nationality. No matter how competent or competitive a Chinese company is, its chances of success are reduced due to its national background. This uncertainty is extremely daunting for businesses, as they can't predict policy changes or the risk of their investments being affected politically.
This is why the Ministry of Commerce is "highly concerned" and calling for changes to the EU's policies.
3. Why Is China Choosing a "Cool Response" to the EU's Provocations?
During her speech at the European Parliament, EU Commission President Ursula von der Leyen brought up the long-standing issue of "trade imbalance" between China and the EU. This is a political tactic to gain a moral advantage in international public opinion.
In response, the Ministry of Commerce spokesperson He Yadong said:
1. Clear Stance: We have already made our position clear and it hasn't changed.
2. No "Microphone Diplomacy": We won't engage in a battle of words or loud arguments.
The Strategy Behind This:
This is a mature strategy for major powers:
- Avoid Confrontation: If China joins the EU in mutual accusations, it would escalate into an emotional standoff, reinforcing the perception that China is also being confrontational.
- Focus on Action: China is more interested in whether the EU actually revises the discriminatory laws. If the EU only talks about it, China won't respond; if it makes changes, China will assess the impact.
- Focus on the Core: The focus is on specific legal reforms and practical benefits, not on political rhetoric.
4. What Are the $30 Billion in Tariff Cuts between China and the US About?
Next, let's look at the negotiations between China and the US. This was another highlight of the press conference.
Background: In May, both countries reached a preliminary agreement on "reciprocal tariff cuts." In simple terms, each will reduce tariffs on $30 billion worth of goods to the lowest tariff levels (or even lower) granted to other friendly nations.
Recent Progress:
He Yadong stated that the economic and trade teams are in close contact, working to implement this agreement as soon as possible.
Simple Explanation:
It's like two neighbors who, after a long argument, decide to stop fighting and agree to reduce tariffs on $30 billion worth of goods each, making trade more affordable for both.
Why Is This Important?
1. Stabilizing Expectations: China and the US are the world's two largest economies, and their trade relations are like the "blue-chip stocks" in the stock market—any disruption can affect the global economy.
2. Benefiting Consumers: Lower tariffs will reduce the cost of imported goods (such as US agricultural products, car parts, and Chinese electronics and machinery), making them more affordable for consumers.
3. Setting an Example: If China and the US can resolve their trade issues through negotiations, it will show other countries that resolving conflicts through talks is possible, rather than resorting to isolationism.
5. A Contrast Between "Building Walls" and "Building Bridges"
Comparing these two issues highlights a clear contrast:
- The EU is Building Walls: By implementing laws that exclude non-alliance countries, the EU is creating barriers, emphasizing security and political correctness at the expense of market openness and efficiency.
- China and the US are Building Bridges: Despite their differences, they are working on practical economic arrangements (tariff cuts) to maintain trade ties, focusing on mutual benefit.
Implications for Individuals and Businesses:
- Businesses Need to Be Aware of Policy Risks: If you plan to invest in the EU, especially in government procurement, high-tech, or infrastructure, you need to be cautious about policy risks. The EU's "Europe First" policy is not just empty talk; it can significantly hinder your operations.
- Watch for Signs of Improving Relations: If the $30 billion tariff cuts between China and the US succeed, it could boost related industries and be positive for the investment market.
- The World is Dividing into Different Circles: The EU is strengthening its own group, while China and the US are trying to maintain trade links. Future international trade will involve more specific conditions and distinctions based on national origins.
In summary, the core message from this press conference is that China opposes all forms of trade protectionism and discriminatory policies and is committed to promoting stable economic relations through pragmatic negotiations. For businesses and individuals, understanding the logic behind these policies is crucial for avoiding risks and seizing opportunities.