News

Monthly Newsflash – June 2020

Dr2 Consultants has extensive experience in building networks and creating opportunities in the “New Economy” – mainly in the digital and sustainability sectors between Europe & China.

This newsletter will provide some key facts & figures about policy developments in these sectors. We aim to provide our network with relevant insights and up to date information*.

In addition, we will provide general information regarding the Covid-19 situation.

MOST IMPORTANT NEWS IN CHINA

 

Chinese Two Sessions held in May, no growth target for 2020. The main topics of discussion this year will likely center on the prevention and control of major epidemics, building a well-off society in an all-round way in China, tackling poverty, and preparing the 14th five-year plan. Because of the coronavirus, prevention and control of major epidemics will take a center stage and China may reform and modernize its disease prevention and control system to address weaknesses in how it addresses major epidemics and public health issues. Read more below and for more references here.

 

Ecommerce related news

  • Shanghai created shopping festivals to boost domestic consumption. The current situation in China is the critical period for resuming production and stimulating consumption. Ecommerce plays an important role in promoting agricultural products. A main purpose of the shopping festival is to help the sales of agricultural products in areas that heavily affected by the epidemic. At the same time, it can also help enterprises who focus on producing goods for foreign trade to expand sales channels in domestic market. How does it work? Read more here.

 

‘New Economy’ – news about circular economy & waste management

  • China won’t relax ecological, environmental protection in the next five year, read more here.
  • China to further support private enterprises in environmental industries. Chinese authorities released guidelines aimed at supporting private enterprises related to energy saving and environmental protection, as part of efforts to win the battle against pollution. The guidelines, jointly released by six government departments including the National Development and Reform Commission, detail measures to create a fair market climate for environmental protection enterprises and provide them with inclusive policy incentives. Under the guidelines, private enterprises will enjoy broader market access to energy-saving businesses in sectors including oil, chemical engineering, electricity and natural gas. read more here.
  • Green economy, a post-outbreak global objective. China’s 14th Five-Year Plan (2021-2025), put forward during the National People’s Congress and the Chinese People’s Political Consultative Conference National Committee sessions last week, places increased emphasis on clean energy and reduction of carbon emissions. But is it enough to reach a global circular economy in a post-COVID-19 world? The Representative of the United Nations Development Programme in China thinks more can be done to come to a truly green economy. Read more here.

 

General Covid-19 News & Facts

Latest numbers

  • 10 consecutive days of 0 domestic cases.
  • June 2 only 1 imported case.
  • Only 2 new asymptomatic cases.

National Measures

  • Kindergartens reopened by June 2nd nationwide.
  • Accelerating research & development for medicines and vaccines.
  • The People’s Liberation Army (PLA) is told by Xi to get ready for worst-case scenarios

Government Stimulus & Policies

  • Transformation of China’s central bank (PBoC) including credit management, financial consumer protection, coordinating financial supervision, macroprudential policy and assessment. The source information in Chinese can be found here.
  • Further help for airlines; between April 1 to June 30, Chinese airlines will be compensated for 80% of their costs to convert passenger airplanes into cargo flights – up to RMB 800,000 or RMB 1,450,000 per plane, depending on the model. The source information in Chinese can be found here.

MOST IMPORTANT NEWS IN EUROPE

Ecommerce related news

  • Most (67%) of the physical shops in Europe are opening again. However, 78% of European retailers are currently experiencing supply chain issues due to COVID-19. To learn more about the impact of the crisis on European retail, take a look at this survey we published on our platform.
  • Screening reforms to create more barriers for investing in EU? The volatility and undervaluation of European state markets lead to the risk of loss of critical assets and technologies. Currently European countries like Spain, Germany and Italy are considering changing their FDI screening regimes or have already done so. Read more here.
  • Just launched | UK 2020: Ecommerce Country Report, Spain 2020: Ecommerce Country Report, France 2020: Ecommerce Country Report. The full reports can be accessed on our platform through the links.
  • For an overview of European Ecommerce related policies (data protection, consumer policies, digital transaction tax, competition, and logistics), read more here.

 

‘New Economy’ – news about circular economy & waste management

  • The Farm to Fork Strategy is at the heart of the Green Deal. It addresses comprehensively the challenges of sustainable food systems and recognizes the inextricable links between healthy people, healthy societies and a healthy planet. Please read more here.
  • Biodiversity is also crucial for safeguarding EU and global food security. Biodiversity loss threatens our food systems, putting our food security and nutrition at risk. Please read more about the EU Biodiversity Strategy 2020 here.

 

General Covid-19 News & Facts

National Measures

  • Belgium decided reopening of all nursery and primary schools in June.
  • The French government’s contact-tracing app project was approved by the lower house of parliament. The French app will be launched this weekend.
  • The Netherlands decided to allow all restaurants to reopen in June.

 

Stimulus & Policies on European level

  • Commission Executive Vice-President Dombrovskis and Economy Commissioner Gentiloni presented the Recovery and Resilience Facility, which makes up the core of the EU’s recovery fund Next Generation EU. The proposed Recovery and Resilience Facility aims to mitigate the economic consequences of the COVID-19 outbreak and has a proposed budget of €560 billion;
  • The Commission presented its proposal for a public sector loan facility under the Just Transition Mechanism. The facility will be implemented with the involvement of the European Investment Bank and will encourage investments that support the transition towards a climate-neutral economy by public sector authorities to the benefit of coal- and carbon-intensive region. The facility will include €1.5 billion in grants from the EU budget and up to €10 billion in loans;
  • Executive Vice-President Timmermans emphasized that the Next Generation EU recovery fund will focus on a green and just recovery from the COVID-19 pandemic. Timmermans said the recovery fund will trigger investments in renewable energy and storage, clean hydrogen, batteries, carbon capture and storage, and sustainable infrastructure;
  • Commissioner for Health Kyriakides gave a speech at the press conference on the €9.4 billion EU4Health Programme, one of the pillars of the Next Generation EU that was proposed by the Commission. More information on the new EU4Health Programme can be found here;
  • Commission President von der Leyen gave a speech at the UN high-level event on financing for development in the era of COVID-19 and beyond;
  • The Commission approved a national support scheme under the Temporary Framework for state aid; Finland introduced a €600 million guarantee scheme to support maritime companies affected by the COVID-19 outbreak. The public support will take the form of State guarantees on working capital loans.

 

If you would like to know more about any topics covered in the newsletter, please contact us at:

shanghai@dr2consultants.eu

*If you would like to subscribe this monthly newsflash, please reply ‘subscribe’ to shanghai@dr2consultants.eu