< /p>

Miqiang: The China -Europe reaching a comprehensive investment agreement will send a clear signal to the Trump administration: China is not so easy to be forced into a passive position by the US -Europe, Japan Trilogy Alliance.

Update on September 27, 2018 at 06:01 British Financial Times Miqiang

A large multinational company signed an agreement to invest billions of dollars in the China Petrochemical Plant.It's boring.These are far less exciting as the trade war between the world's two largest economies.

This is why a agreement signed on July 9th; mdash; German chemical giant Basf (BASF) invested $ 10 billion in MDASH; mdash; almost no media reports, especially with threeBefore the US President Donald Bull; Donald Trump's first shot of the trade war against China.

However, these two incidents are closely related, and to a large extent reveal that Beijing's small things in market access reform in recent years have been confused.When foreign investors were forced to operate through the structure of joint venture, Chinese companies benefited greatly, but if these requirements were canceled long ago, China could have benefited more.

The new factory in Zhanjiang City, Guangdong Province is an appropriate example.The first wave of tariffs levied by the United States to the United States in the United States was not accidentally approved after taking effect on July 6.Under the joint witness of German Chancellor Angra Bull; Angela Merkel and Chinese Prime Minister Li Keqiang, the chairman of BASF board, Martin Brudermuuml, signed the above agreement with Lin Shaochun, deputy governor of Guangdong Province in Berlin.

As the tension with the United States has continued to intensify, Chinese officials are eager to release large -scale investment projects in Europe and Japan.Beijing officials are willing to complete the preliminary approval of the BASF large project (the project will constitute a direct competition with Chinese state -owned enterprises) from quickly, reflecting the extent of their worry about the trade war.

During the first five -year term of the leader of Chinese President, the US and European multinational companies were increasingly disappointed with China's market access and other investment barriers.The EU's investment in China stagnated from 2013 to 2015 to 10 billion euros per year, and then fell to 8 billion euros per year in 2016 and 2017.BASF's 10 billion U.S. dollar investment project (although the time span is 10 years) may help to reverse this trend.

The main reason for BASF is willing to invest in such a large -scale investment is to have the opportunity to own 100%of the project.After the project is completed, Zhanjiang Factory will become the world's largest single -investment project in the world, and become the third largest petrochemical product production base in BASF, second only to its similar factories in Ludwigki, Germany and Belgium Antwerp.

The Zhanjiang project will also become the largest production base in Asia.BASF is currently only two comparable production bases in Asia, Kuantan, Nanjing and Malaysia in Nanjing and Malaysia in East China. It is a joint venture established by BASF and local partners based on 50:50 and 60:40 shares.

If China has relaxed its joint venture earlier, it is not difficult to imagine that other industries can get the same rich investment dividend from Europe, the United States and Japan.

China is the world's largest automotive market, and one of the biggest mysteries in the Chinese auto market is why Toyota's sales (1.1 million vehicles last year) are significantly less than Honda's sales (1.4 million).Globally, Toyota sold 10.2 million cars in 2017, more than twice the Honda.

Some Japanese officials believe that because of worrying technology, especially technology related to electric and fuel cell vehicles, it may be leaked to local partners. Toyota's positiveness in China has not reached the level of possible.Beijing has recently announced that it will allow foreign car manufacturers to owns a factories that produce new energy vehicles from next year, which may inspire Toyota to finally take bold measures in China, just like BASF.

Of course, for Beijing, the most reliable way to attract large -scale investment inflows from Europe and Japanese companies will be a relaxation control beyond a specific industry and negotiating with Brussels and Tokyo to reach an ambitious trade agreement.

The Chinese government and the European Union conducted long -term negotiations on the comprehensive investment agreement, and are now the best time to complete the negotiations.One and for all can solve the bold China -Europe comprehensive investment agreement operating European companies in China once and for all, and will send a clear signal to the Trump administration, that is, China is not so easy to be forced to be passive by the three -sided trading alliances of the United States and Europe.The reality is that EU officials said that their negotiations with China's comprehensive investment agreement are still as full of order and slow progress as before.

If the Chinese government wants to reach more large -scale investment transactions like BASF in Guangdong, it is the best starting point to start a new round of efforts to reach a comprehensive investment agreement with Europe.

Translator/Shen Kai