Dear Auto Components Working Group Members,
The European Chamber is delighted to invite you to join Auto Components Working Group Meeting: Possible Solutions for Trade War Impact on the Auto Industry and the Side Effects to the Auto Part Global Sourcing at 09.00-10.30 am, 29th August 2018 at the European Chamber Shanghai Office.
With a background that, since earlier, China overall decreased the import tariffs on a lot of products, including automobile importing to China. Nevertheless, due to the trade war triggered by US government, 25% additional tariff has been imposed by China government for cars produced in the US. Under the contrast of the rise and the drop, imported automobile companies whose production sites are located in the United States will bear higher tariff costs than their competitors in the same industry out of US. The change in the data of import and export in July is only a microcosm of the macro economy. However, with a strong economic foundation at the same time, the necessary ways to achieve high-quality economic development may be to use more positive fiscal policies, to remove the barrier to the currency flow to the real economy, and to indeed consolidate the endogenous driving force of manufacturing development.
National policies have broadened the gap in competition among different imported automobile brands. It is currently impossible to predict when this situation will end. In this case, the price adjustment is only a short-term solution. Some imported car companies are actively looking for adjustment plans to react to the relatively unequal competition in the market so as to maintain the market share, such as adjusting production bases and accelerating localisation in China.
In the meantime, the US 232 investigation has conducted additional tariffs to steel and aluminum imported from various countries to US, and according to the latest news, US government is now studying the necessary to include auto-components to be within 232 scope. This has made big panic to a lot of MNCs in this industry. This may also make big impact to auto-component industry.
One of the critical mind set is to leverage current legal systems in both China and US to try to mitigate the tariff cost when possible, from both legal and political perspective. Through this meeting, we aim to have expert in this area to share the insights and experiences with all the audience, as well as lead the brainstorming with everybody, to figure out the possible practice for MNCs to better deal with current difficulties.
Agenda:
09:00 – 10:30 am
·Roundtable Introduction;
·Opening Remarks by Vice Chair of Auto Components Working Group Shanghai;
·Presentation by Harry Zhang, Vice President, Greater China Practice Leader, Sandler, Travis & Rosenberg, Possible Solutions for Trade War Impact on the Auto Industry and the Side Effects to the Auto Part Global Sourcing;
·Q&A and Discussion;
·Any other business;
If you would like to attend this meeting in our Shanghai office, please register via sending an email to Ms. Mo Zhou at mzhou@euccc.com.cn before 24 August 2018.