EU-China Relations & Trade Dynamics - Expectations for the EU-China summit are low, with a joint statement on climate action being the most likely deliverable [1] - The EU-China relationship is at an inflection point, with potential for improvement or deterioration [2] - China seeks a "win-win" relationship with the EU, a major trading partner [2] - The EU is concerned about the trade imbalance with China, where China exports significantly more to the EU than it imports [3] Trade Imbalance & Shifting Geopolitics - The EU's trade imbalance concerns with China have intensified recently [3] - China has positioned itself as a partner for countries facing unilateral tariffs, particularly in the context of trade conflicts [5] - Closer ties between the EU and the US (potentially through a 15% tariff deal) could reduce the EU's incentive to make concessions to China [4][6] - The idea of EU-China alignment solely based on shared trade rivals is not substantial due to underlying economic issues [6] Key Issues & Obstacles - The EU is troubled by China's economic and diplomatic support for Russia following the invasion of Ukraine [7] - European public opinion views Russia as the greatest threat, making China's support for Moscow problematic [7][8] - EU concerns include the decline in its vehicle exports to China, while China's electric vehicle exports to the EU have increased dramatically [8]

US-Malaysia Trade Negotiations - Negotiations with the US are ongoing, with the timeline extended to August [1][2] - Malaysia seeks to engage all stakeholders to reach a conclusion in negotiations [4] - Key issues under discussion include agriculture standards and recognition of the digital economy [5] - Malaysia aims for mutual recognition of various standards, especially in agriculture [16] - Malaysia emphasizes the need to address the trade imbalance, highlighting its positive trade surplus with the US, which is based on the US numbers, it's about 25 billion USD in 2024 [13][14][15] Tariffs - Malaysia's average tariff to the US is around 56% [6] - While initially aiming for a 0% tariff rate, the discussion now focuses on an average tariff, with a potential floor of 10% [7] - Some sectors like semiconductors and pharmaceuticals may remain exempt from the 10% tariff [8] Economic Impact and Mitigation - Potential multiple tariffs could impact Malaysia's economy by 50 to 100 basis points (0.5% to 1%) in 2025, depending on the scope and exceptions [24] - Malaysia's GDP growth is forecasted at 45% to 55% [25] - Mitigation strategies include diversifying markets, increasing access to existing markets, and supporting exporters [27] Multilateralism and Trade Relations - Malaysia supports the principle of multilateralism and engages with all countries, believing in a rule-based multilateral order with the WTO at its core [19][20] - Malaysia is applying to be a member of BRICS, viewing it as an important platform for trade and investment, similar to the EU, DCC, and RCEP [17][18] - ASEAN member countries are engaging with the US and have agreed not to take retaliatory measures [22][23]