Group 1 - The proposed merger between Anglo American and Teck Resources has been submitted to the EU for antitrust review, indicating that the EU does not foresee significant competition issues with the merger [1] - The European Commission is expected to make a decision on the antitrust matters by February 10, while Canada has already approved the transaction [1] - The European Commission is also evaluating the merger under its Foreign Subsidies Regulation, aimed at preventing unfair competition from non-EU companies receiving government subsidies, with a decision due on February 3 [1] Group 2 - The merger was announced in September of last year, aiming to create the fifth-largest copper company globally and marking the second-largest merger in mining history [1]

Group 1 - The European Union (EU) has decided to impose a fixed tariff of 3 euros on all small packages imported directly from non-EU countries with a declared value below 150 euros, effective from July 1, 2026, paving the way for a permanent tariff arrangement [1][3][5] - This temporary measure is aimed primarily at Chinese platforms that rely on low-value direct mail, indicating a significant shift towards regular customs duties and increased regulatory scrutiny [3][5][12] - The EU received 4.6 billion low-value packages in 2024, with approximately 90% originating from China, highlighting the growing gap between regulatory capabilities and the volume of small packages [5][7] Group 2 - Recent enforcement actions include unannounced inspections of Temu's European headquarters in Dublin and investigations into Nuctech under the Foreign Subsidies Regulation, indicating a tightening regulatory environment for Chinese companies operating in Europe [3][7][12] - French President Macron has emphasized the need for stronger tools, including tariffs, to address the trade imbalance with China, reflecting a broader sentiment among EU member states regarding consumer protection and fair competition [8][10][12] - The EU's regulatory framework is evolving, with potential implications for compliance costs and operational transparency for platforms and supply chains, as the focus shifts from low-cost advantages to higher compliance requirements [13][15][19] Group 3 - The EU's approach may lead to a "political bargaining" scenario where platforms can negotiate compliance measures in exchange for regulatory predictability, while also addressing external competitive pressures [15][16] - If tariffs and enforcement actions expand to more product categories, European consumers may face price increases, and Chinese companies could experience tighter supply chain constraints, accelerating geographical reallocation of orders and investments [19][21] - The relationship between China and the EU may experience short-term friction, particularly in e-commerce and technology sectors, but the long-term trajectory will depend on the implementation of temporary tariffs and the handling of subsidy cases [21]

Core Viewpoint - The EU Chamber of Commerce in China strongly opposes the recent intensive investigations by the EU into alleged subsidies for Chinese enterprises, calling for an immediate halt to discriminatory and arbitrary enforcement actions against Chinese companies [1][2]. Group 1: Investigations and Regulations - The EU has launched a series of deep investigations and "dawn raids" on Chinese state-controlled enterprises under its Foreign Subsidies Regulation, which the EU Chamber claims is a misuse of regulatory tools targeting Chinese firms [1]. - The definition of "foreign subsidies" under the EU's regulation is criticized for being overly vague and broad, potentially exceeding reasonable bounds of current international trade and subsidy rules [1]. Group 2: Impact on Chinese Enterprises - Since the implementation of the Foreign Subsidies Regulation, most investigations initiated by the EU have targeted Chinese enterprises, leading to several companies being forced to withdraw from EU public procurement projects [1]. - A survey conducted by the EU Chamber among 205 Chinese enterprises and institutions revealed that 63% reported their business being affected by the EU's regulation, including direct impacts, loss of business opportunities, or operational risks due to potential investigations [2]. - Additionally, 51% of the surveyed enterprises believe that the regulation has indirectly harmed their commercial reputation and market image [2]. Group 3: Call for Fair Practices - The EU Chamber urges the EU to exercise caution in using the investigative powers granted by the Foreign Subsidies Regulation and to stop discriminatory and unfounded enforcement actions against Chinese enterprises [2]. - There is a call for the EU to reduce compliance burdens on companies and to provide a fair, just, and transparent business environment for foreign investors, promoting healthy and stable development of Sino-European investment and trade relations [2].

Core Points - The EU Chamber of Commerce in China expressed deep concern over the EU's investigation into alleged subsidies for Chinese companies, emphasizing that the EU's Foreign Subsidies Regulation should not become a tool for protectionism or exclusion from procurement [1][2] - The EU announced an investigation into CRRC Tangshan's alleged subsidies related to the bidding for the Lisbon light rail project, which the EU Chamber opposes [1] - The Chamber highlighted that the EU's regulation grants excessive discretionary power to the EU, leading to significant compliance burdens for non-EU companies, particularly Chinese firms [1] - There are concerns that the regulation creates substantial market access barriers in public procurement, potentially distorting fair competition [1] - Feedback from Chinese companies indicates they face disproportionate, discriminatory, and non-transparent treatment in investigations related to the EU's regulation, which could send negative signals to international investors [1] Summary by Sections - **Concerns Over EU Regulation**: The EU Chamber urges the EU to implement the Foreign Subsidies Regulation in an objective, fair, and non-discriminatory manner to avoid it being used as a unilateral tool for protectionism [2] - **Chinese Companies' Competitiveness**: The statement asserts that Chinese companies have demonstrated strong competitiveness, compliance awareness, and commitment to sustainable development in Europe, advocating for openness and cooperation as the path to mutually beneficial Sino-European trade relations [2]

Core Viewpoint - The European Union has initiated a review of the Foreign Subsidies Regulation to assess the impact of foreign subsidies on the internal market and gather feedback from various stakeholders [1][2] Group 1: Review Announcement - The review focuses on five key issues: evaluating foreign subsidies that distort the internal market, weighing the positive impacts of foreign subsidies against their negative effects, the EU Commission's self-assessment of potentially distorting foreign subsidies, the reporting thresholds for foreign subsidies, and the complexity and cost burden of the Foreign Subsidies Regulation on businesses [1] - Stakeholders, including companies, law firms, EU member states, chambers of commerce, individuals, and research institutions, can submit feedback to the EU Commission until November 18, 2023 [1] - A report will be submitted to the European Parliament and the European Council by the EU Commission in July 2026 [1] Group 2: Background Information - The Foreign Subsidies Regulation came into effect in January 2023 and began implementation in July 2023, requiring the EU Commission to review its implementation and execution every three years [2] - The regulation was introduced following a white paper published in June 2020, which highlighted the negative impact of foreign subsidies on competition within the EU market [1]

Core Viewpoint - The acquisition of Covestro by ADNOC faces challenges as the European Commission has initiated a "foreign subsidies" investigation to assess the compliance of the deal with the Foreign Subsidies Regulation (FSR) [1] Group 1: Acquisition Details - ADNOC plans to acquire all issued shares of Covestro for approximately €11.7 billion, with an additional €3 billion in debt, bringing the total transaction value to €14.7 billion (around ¥114 billion) [2] - Covestro will issue 10% of new shares to accept ADNOC's capital injection of €1.17 billion [2] - The transaction has already passed the traditional merger review process by the EU in May [2] Group 2: Regulatory Concerns - The European Commission's preliminary investigation indicates concerns that subsidies from the UAE may distort the EU internal market [1] - The investigation will evaluate whether the foreign subsidies received by ADNOC could lead to an acquisition at an inflated price, potentially hindering other investors from participating [1] - The EU will also assess the potential negative impacts of the merged entity's operations on the EU internal market post-acquisition [1] Group 3: Company Background - ADNOC, based in the UAE, aims to position its subsidiary XRG among the top five global chemical companies, making this acquisition a significant step towards that strategic goal [3] - Covestro, headquartered in Germany, was spun off from Bayer Group in 2015 and has projected sales of €14.2 billion for 2024, operating 46 production sites globally with approximately 17,500 employees [3]