BEIJING: European companies that export from China are changing the global flow of their goods to avoid higher American tariffs, a business group said Tuesday, in a sign of the spreading impact of the US-Chinese trade war.
Tariff hikes are “hitting immediately the bottom line” of companies that rely on the flow of components and finished goods across countries, said Mats Harborn, president of the European Union Chamber of Commerce in China.
Companies are “scrambling to readjust supply chains” so goods bound for the United States don’t pass through China, Harborn said at a news conference. He said one has shifted final assembly of goods from China to a newly created American unit.
The Trump administration’s 25 percent tariffs on $34 billion of medical equipment, electronics and other goods from China, imposed in a dispute over technology policy, apply to exports made by US or European companies as well as Chinese suppliers.
European governments have criticized President Donald Trump’s approach but have resisted Chinese efforts to recruit them as allies in their dispute.
Tariffs are a “dangerous and very blunt instrument” to settle disputes, Harborn said.
“We share the concerns expressed by the American side,” he said. “But there are better and less risky ways to deal with these problems.”
On Monday, Chinese and German companies including BASF and Volkswagen signed business deals worth 20 billion euros ($23.6 billion) during a visit to Berlin by China’s No. 2 leader, Premier Li Keqiang.
Harborn said a European supplier of environmental technology believed it might have been awarded a Chinese government contract ahead of an American competitor due to its non-US status.
Also Monday, German automaker BMW AG said it would raise prices on US-built SUVs exported China due to higher tariffs.
Beijing’s increases include an additional 25 percent tariff on cars imported from the United States, raising the total charge to 40 percent.
BMW exports SUVs from a factory in Spartanburg, South Carolina, that employs 10,000 people.
European exporters in China shift trade to avoid US tariffs
European exporters in China shift trade to avoid US tariffs
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
