Foreign trade personnel, please check: Weekly hot news review and outlook (5.13-5.20)

01 Important Event

Apple is close to reaching an agreement with OpenAI to apply ChatGPT to iPhone

On May 10th, sources informed that Apple is close to reaching an agreement with OpenAI to apply ChatGPT on the iPhone. It is reported that both parties are seeking to finalize the terms of an agreement to use the ChatGPT feature in Apple's next-generation iPhone operating system iOS 18. According to reports, Apple is also in talks with Google to authorize the use of its Gemini chatbot. Negotiations are ongoing and both sides have not yet reached an agreement.

Source: Caixin News Agency

The world's first 6G wireless device was born

Several Japanese telecommunications companies, including DOCOMO, NTT, NEC, and Fujitsu, have jointly announced the birth of the world's first high-speed 6G wireless device. This device marks a major leap in communication technology, with a data transmission speed of up to 100Gbps per second, which is not only 10 times the current peak speed of 5G, but also more than 500 times the download speed of ordinary 5G smartphones.

Source: Caixin News Agency

The China Serbia Free Trade Agreement officially came into effect in July this year

The China Serbia Free Trade Agreement will officially come into effect on July 1st this year. According to the person in charge of the International Department of the Ministry of Commerce of China, after the agreement takes effect, both sides will cancel tariffs on 90% of each tax item, of which more than 60% will be cancelled tariffs immediately after the agreement takes effect. Both sides ultimately achieved a zero tariff import ratio of around 95%.

Specifically, Serbia will include China's key focus on automobiles, photovoltaic modules, lithium batteries, communication equipment, mechanical equipment, refractory materials, and some agricultural and aquatic products in zero tariffs. The tariffs on related products will gradually decrease from the current 5% -20% to zero. The Chinese side will include generators, electric motors, tires, beef, wine, nuts, and other products that Serbia focuses on in zero tariffs, and the tariffs on related products will gradually decrease from 5% to 20% to zero.

Source: Global Network

Microsoft is reportedly preparing to launch a new artificial intelligence language model to compete with Google and OpenAI

According to sources cited by the media, Microsoft is training a new internal artificial intelligence language model that is "large enough to compete with the AI language models of Google and OpenAI.". According to insiders, the new model is referred to as "MAI-1" within Microsoft and is led by Mustafa Suleyman, CEO of the company's AI department. Suleiman is a co-founder of Google DeepMind and former CEO of AI startup Inflection.

Source: Science and Technology Innovation Board Daily

German Transport Minister Refuses EU to Impose Tariffs on Chinese Automobile Manufacturers: Do Not Want to Block the Market

The German newspaper Time Weekly reported on the 8th that the European Union is currently conducting a countervailing investigation on electric vehicles produced in China and considering imposing punitive tariffs. In September last year, European Commission President von der Leyen announced an investigation into the distortion of market competition caused by Chinese subsidies. If the investigation shows that China has violated trade laws, the EU may impose punitive tariffs.

The EU currently imposes a 10% tariff on electric vehicles. The German Business Daily reported that economists from the University of Bocconi in Italy believe that the economic reasoning of the European Commission is questionable. They found in a new study that the cost advantage of Chinese manufacturers and the "high price strategy" of European car manufacturers may also be the reason why Chinese electric vehicles are so competitive in the European market, rather than subsidies. According to research, imposing tariffs may result in consumers spending an additional 10000 euros per vehicle.

Source: Global Network

The Swedish central bank is expected to lower interest rates again in the second half of the year for the first time in eight years

The Swedish Central Bank announced on the 8th that due to easing inflation and economic weakness, it will lower its benchmark interest rate by 25 basis points to 3.75% starting from the 15th of this month. This is the first rate cut by the Swedish central bank in eight years. The Swedish central bank stated that inflation is approaching its target of 2%, and economic activity is weak, so the central bank can relax monetary policy. The Swedish central bank also stated that if inflation further decreases, it is expected that policy interest rates will be lowered twice in the second half of the year.

Source: China Trade News Network

Welcome to the Watergate Ceremony! The longest international direct flight to Mexico City in China

On the evening of May 11th, the first direct flight from Shenzhen to Mexico City, operated by China Southern Airlines Group Co., Ltd., landed at Benito Juarez International Airport in Mexico City after a 16 hour flight. The local airport held a watergate ceremony to welcome the landing of Chinese passenger planes. This route spans over 14000 kilometers and is currently the longest direct international passenger route for Chinese civil aviation. It is also the only direct passenger route from mainland China, Hong Kong, Macao, and Taiwan to Mexico and even the entire Latin America.

Source: Global Network

Fresh fruits and vegetables from Xinjiang take cold chain card flights directly to Central Asian countries for the first time

Urumqi, May 10th (Xinhua) -- The inaugural ceremony of the Jiuding Agricultural Products Wholesale Market in the 12th Division of the Xinjiang Production and Construction Corps of the China (Xinjiang) Pilot Free Trade Zone, Almaty (Cold Chain Aviation), was held on May 10th. More than 40 tons of fresh fruits and vegetables "take" cold chain card flight out of the market, and will leave the country from Khorgos port to Almaty, Kazakhstan. It is understood that Kahang uses high-performance trucks for cross-border transportation of goods, and is an emerging transportation method after air, sea, and rail transportation, also known as the "fourth logistics channel". According to the International Road Transport Convention, the entire process of card air transportation will not be inverted or unloaded, and the customs of transit countries will not inspect or open the boxes in principle, which has advantages such as low transportation costs, unrestricted storage space, guaranteed timeliness, and strong customs clearance capabilities.

Source: Global Market Intelligence

02 Industry News

21 Enterprises in Guangdong Province Signed Chain Expo

The second Chain Expo will be held in Beijing from November 26th to 30th this year. The theme of this year's Chain Expo is "Connecting the World and Creating the Future Together", with six major chains and supply chain service exhibition areas set up: Advanced Manufacturing Chain, Clean Energy Chain, Intelligent Automobile Chain, Digital Technology Chain, Healthy Life Chain, and Green Agriculture Chain. At the same time, special forums and supporting activities such as investment promotion, supply and demand docking, and new product releases will be held. The first Chain Expo held last year attracted 515 companies from 55 countries and regions to participate. The total number of visitors to the exhibition exceeded 150000. Among them, the number of professional viewers exceeded 80000. The first Chain Expo signed more than 200 cooperation agreements, involving a total amount of over 150 billion yuan.

Source: China Trade News Network

The "New" Wind of China's Foreign Trade Blows Vigorously - New Quality Productivity Stimulates New Energy in Foreign Trade

Li Xingqian believes that based on the export performance in the first quarter, it can be seen that there are three areas with abundant innovation vitality and potential for sustained growth.

One is the strong foundation for exporting complete sets of equipment. The automotive and equipment manufacturing industries in China have accumulated innovative achievements in the long and full industry chain. If some of the components and functional systems are taken out separately, they are full of creativity and a strong sense of technology. "For example, in car voice systems are rapidly moving towards the field of AI, and forklifts commonly used in factories, warehousing, and logistics are gradually becoming electrified and unmanned," said Li Xingqian.

The second is the increasing demand for intelligent product exports. China's export products are developing towards "specialization, refinement, uniqueness, and novelty", deeply cultivating sub sectors. Taking intelligent robots as an example, sweeping robots, swimming pool cleaning robots, automatic lawn mowing robots, and high-altitude curtain wall cleaning robots are all highly favored by overseas consumers. According to statistics from the International Federation of Robotics, the average annual growth rate of robot installation in China reached 13% from 2017 to 2022. According to customs data, the export growth rate of industrial robots in China reached 86.4% in 2023.

Thirdly, low-carbon, energy-saving and environmentally friendly products are highly welcomed. More energy-efficient air source heat pump equipment, which can save up to 75% energy compared to traditional electric heating or coal-fired boilers, is popular in the European market. New textile fabrics that can be printed and dyed without water can make the printing and dyeing process more water-saving and energy-saving, and there is no sewage discharge, which is highly recognized by consumers.

Source: Guangming Daily

Starting from May 1st, the extension of customs commodity classification, price, and place of origin pre ruling will be implemented

Recently, the General Administration of Customs issued a notice on the implementation of customs pre ruling extension and other related matters, further clarifying the requirements for pre ruling work. The relevant policies will be implemented from May 1, 2024.

Source: Announcement No. 32 of the General Administration of Customs in 2024

The foreign trade data in April was better than expected, and exports will remain strong in the short term

According to the data released by the customs deployment, in US dollars, the export volume in April 2024 increased by 1.5% year-on-year, and decreased by 7.5% year-on-year in March; The import volume in April increased by 8.4% year-on-year, and decreased by 1.9% year-on-year in March. Looking ahead, the growth rate of China's import volume in May is expected to fall again. This is mainly due to changes in the base during the same period last year, and at the same time, there have been signs of high-level adjustments in international commodity prices recently, which may also have a certain impact on the growth rate of imports. More importantly, although the development of infrastructure and the improvement of exports have driven the import of related commodities, import demand still needs to be further boosted due to the sluggish real estate investment and weak domestic consumer demand. It can be seen that the import index in the official manufacturing PMI index briefly rose to the expansion range in March and then dropped again to 48.1% in April, indicating that the overall growth momentum of imports is weak. We predict that the year-on-year growth rate of China's import volume in May will slow down to around 3.0%.

Source: Market Information

Chinese companies obtain exploration permits for five oil and gas fields in Iraq

On May 11th local time, in a round of oil and gas exploration permit bidding held by the Iraqi Ministry of Oil, a Chinese company won the bid to explore five oil and gas fields in Iraq. China National Petroleum Corporation (CNPC) has won the bid for the northern extension of the eastern Baghdad oil field, as well as the middle reaches of the Euphrates River oil field spanning the southern Najaf and Karbala provinces. China United Energy Group Co., Ltd. won the bid for the Al Faw oilfield in southern Basra, Zhenhua won the Qurnain oilfield in the border area between Iraq and Saudi Arabia, and Intercontinental Oil and Gas won the Zurbatiya oilfield in the Wasit region of Iraq.

Source: Reuters

The top five power battery rankings released in April occupy nearly 90% of the domestic market

On May 11th, the China Automotive Power Battery Industry Innovation Alliance released the latest data showing that in April this year, the combined market share of the top five domestic power battery installation companies reached 88.1%, an increase of 1.55 percentage points from the previous month. Last year, the total market share of the top five domestic power battery installation companies was 87.36%. In January 2024, the market share of the top five companies was 82.8%, and it has been increasing month by month, with an average monthly growth of 1.77 percentage points. The market stock of the companies ranked behind is constantly being squeezed.

Source: Interface News

The latest international oil price (OPEC WTI crude oil) has fallen

On Saturday (May 11th), the electronic price of WTI June crude oil futures in the United States closed down $1.00, a decrease of 1.26%, at $78.26 per barrel. London Brent crude oil futures for July delivery closed down $1.09, a decrease of 1.30%, at $82.79 per barrel.

Source: Oriental Wealth Network

Hainan Free Trade Port issues the first China Ecuador Free Trade Agreement Certificate of Origin

Haikou Port Customs, under the jurisdiction of Haikou Customs, successfully issued the first certificate of origin for Hainan Jiangyu International Business Co., Ltd. exported to Ecuador. With this certificate, the company's batch of thermocouples worth 56000 yuan will enjoy zero tariff treatment in Ecuador, with a tariff discount of approximately 2823.7 yuan. This is the first shipment of goods enjoyed by Hainan foreign trade enterprises under the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Ecuador, which officially came into effect on May 1st.

Source: Overseas Cross border Weekly Report

In the first quarter, the export of complete bicycles in China reached 10.99 million units, an increase of 13.7% compared to the previous quarter

In the first quarter, China exported 10.99 million complete bicycles, an increase of 13.7% compared to the fourth quarter of 2023, continuing the recovery growth trend since the second half of last year. Guo Wenyu, Vice Chairman and Secretary General of the China Cycling Association, introduced that China's exports of bicycles to major markets increased in the first quarter. Exporting 2.295 million vehicles to the United States, a year-on-year increase of 47.2%; Exporting 930000 vehicles to Russia, a year-on-year increase of 52.1%; Exports to Iraq, Canada, Vietnam, and the Philippines saw strong growth, with export volumes increasing by 111%, 74.2%, 71.6%, and 62.8% year-on-year, respectively.

Source: Overseas Cross border Weekly Report

03 Important events next week

Global News for a Week

Monday (May 13th): April New York Fed 1-year inflation expectations, Eurozone finance ministers meeting, Cleveland Fed Chairman Mester and Federal Reserve Director Jefferson delivering speeches on central bank communication.

Tuesday (May 14th): Germany's April CPI data, the UK's April unemployment data, the US April PPI data, OPEC's monthly crude oil market report, Federal Reserve Chairman Powell, and European Central Bank regulator Norte attended a meeting and delivered speeches.

Wednesday (May 15th): France's April CPI data, Eurozone's first quarter GDP correction, US April CPI data, and IEA's monthly crude oil market report.

Thursday (May 16): Initial GDP data for Japan's first quarter, Philadelphia Federal Reserve Manufacturing Index for May, US initial jobless claims for the week ending May 11, Minneapolis Federal Reserve Chairman Kashkari attending a fireside conversation, and Philadelphia Federal Reserve Chairman Huck delivering a speech.

Friday (May 17th): Eurozone April CPI data, Cleveland Fed Chairman Mester's speech on economic outlook, Atlanta Fed Chairman Bostic's speech.

04 Global Important Meetings

MOSSHOES&MOSPEL at the 2024 Russia International Footwear and Luggage Exhibition

Host: Moscow Footwear Association and Leather Association, Russia

Time: August 26th to August 29th, 2024

Exhibition location: Palace style exhibition hall near Red Square

Suggestion: MOSSHOES, an international footwear exhibition in Moscow, Russia, is one of the world's famous professional shoe exhibitions and the largest footwear exhibition in Eastern Europe. The exhibition began in 1997 and was organized by the Moscow Footwear Association and the Leather Association in Russia. The average exhibition area per session is over 10000 square meters. Last year, more than 300 exhibitors from 15 countries and regions participated in the exhibition.

2024 International Solar and Energy Storage Exhibition in Cape Town, South Africa

Host: Terrapinn Holdings Ltd

Time: August 27th to August 28th, 2024

Exhibition location: Cape Town - Cape Town International Exhibition Center

Suggestion: The Solar&Storage Show Cape Town is hosted by Terrapinn and is a sister exhibition to the March Joborg exhibition in South Africa. It is currently one of the largest and most influential solar industry events in South Africa. The exhibition will gather high-quality manufacturers and service providers to bring new technologies and a new future to the solar and energy storage industry in Africa, promote energy transformation in Africa, and bring innovation in solar energy, energy production, batteries, storage solutions, and clean energy. This exhibition brings together all major stakeholders, including utilities, IPP, government, regulatory agencies, associations, and consumers. Foreign trade professionals in related industries are worth paying attention to.

05 Global Major Festivals

May 16th (Thursday) WeChat Day

Vesak Day (also known as Buddha's Birthday, also known as Bathing Buddha's Day) is a day on which Buddha is born, attained enlightenment, and passed away.

The date of Vesak Day each year is determined by the calendar and falls on the full moon in May. Countries including Sri Lanka, Malaysia, Myanmar, Thailand, Singapore, Vietnam, etc. that list this day (or several days) as a public holiday. Given that Vesak has been recognized by the United Nations, the official international name is "United Nations Day of Vesak".

Suggestion: Understanding is sufficient.