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China Strikes Back: Anti-subsidy Investigation Begins Against Imported Dairy Products From The EU

by THEFUTURE.TEAM

August 22, 2024

China has announced the start of an investigation into EU-subsidized dairy imports. The news comes just a day after Brussels published its revised draft to introduce higher tariffs on electric car imports from China.

KEY FACTS

According to information from the state-run Xinhua news agency, China’s Ministry of Commerce is launching an anti-subsidy investigation against imports of dairy products intended for consumption. It is about cheeses, milk and creams.
The investigation began following a complaint filed by the China Dairy Association and the China Dairy Industry Association on July 29.
China will consider 20 subsidy schemes from across the 27-member bloc, specifically those from Austria, Belgium, Croatia, the Czech Republic, Finland, Italy, Ireland and Romania.
According to Chinese customs data, the EU is the second largest supplier of dairy products to China with at least 36% of the total value of imports in 2023. According to data from the European Commission, in 2023 the EU exported to China dairy products worth 1, 7 billion euros ($1.84 billion).
In June, the Chinese authorities announced the initiation of another investigation – into the subsidized import of pork and frozen products. The investigation began following a complaint filed by the China Animal Breeding Association. According to data from EU customs, more than half of the pork imported from China in 2023, worth about 6 billion dollars, falls.

KEY STORY

The European Commission announced the introduction of higher tariffs on electric car imports from China and launched an investigation into the excessive amount of subsidies the state provides to the sector. The EU believes that cheap imports from China are undermining the European market. The tariffs were preliminary and were put in place while the investigation is still ongoing.

China says the measures are protectionist and has threatened to retaliate with its own tariffs on a number of sectors, including pork, large-engine cars and spirits. Beijing also disputes the measures before the WTO.

According to the EC’s final proposal, the Chinese companies that will be hit the hardest by the higher tariffs are SAIC Motor Corp., Volvo Car parent company AB Geely and BYD. They face additional duties of 36.3%, 19.3% and 17% respectively. These duties will be added to the existing 10% levy on EV imports into the EU.

The final decision will be taken only after the publication of the final regulation by 30 October 2024 at the latest. All potential measures will be in force for a period of 5 years, which may be extended.

WHAT TO WATCH FOR

Rates may still change before they become final. The parties have the right to dispute this proposal within 10 days after its publication. Their comments will be considered and taken into account. Chinese companies condemned the EC’s decision and described the tariffs as “unfair”.

Cyprus Showcases Its Business Advantages At 2024 London Event

by THEFUTURE.TEAM

December 5, 2024

Cyprus seized the opportunity to present itself as a premier destination for high-net-worth individuals (HNWIs) at the ‘Non-Doms: The Cyprus Private Client Offering Gathering 2024,’ held at the iconic London Stock Exchange. The event attracted over 150 participants, including professionals from the UK and experts from Cyprus, all gathering to explore Cyprus’ business advantages.

The gathering aimed to strengthen ties between the international investment community and Cyprus, highlighting the island’s competitive tax regime and wealth management opportunities. The central focus was Cyprus’ strategic appeal for non-domiciled residents, particularly as changes to the UK’s tax framework prompted many HNWIs to reconsider their tax and residency options.

A Shift in Global Tax Dynamics

With the UK government’s decision to abolish its long-standing non-dom tax regime, Cyprus stands poised to become an attractive alternative. The UK’s new residence-based system, set to take effect in April 2025, could direct more wealthy individuals and businesses toward jurisdictions like Cyprus, known for its fiscal benefits and strategic location in the Eastern Mediterranean.

Marios Tannousis, CEO of Invest Cyprus, and George Pantelis, former Director General of the Finance Ministry, addressed how Cyprus is uniquely positioned to capitalize on this shift. Their presentations underscored the island’s stability, tax benefits, and favorable environment for both personal wealth and corporate operations.

Key Highlights from the Conference

One of the highlights of the event was the panel discussion titled “Cyprus: A Destination of Choice for HNWIs, Their Families, Companies, and Employees.” Experts like Christos Neokleous, Consultant at Tsirides Law, outlined the simplicity of doing business in Cyprus, emphasizing the ease of setting up companies and understanding the regulatory environment.

Andreas Andronicou, Partner at PwC Cyprus, discussed the significant tax advantages for both individuals and corporations looking to operate from Cyprus, especially within the European and global markets. The country’s legal framework, based on the English Common Law system, was another focus, with Melina Dionysiou, Director/Head of Corporate at Totalserve, explaining its business-friendly aspects.

A Strategic Business Environment

Cyprus’ status as an international business hub is further reinforced by its competitive tax rates, skilled workforce, and advantageous legal system. These factors, combined with its prime location, make it an ideal choice for companies seeking to expand into new markets. Moreover, the conference highlighted the island’s growing appeal to foreign investors and companies, with opportunities ranging from tax-efficient corporate structures to residency-by-investment programs.

As the world moves toward greater tax competitiveness, Cyprus is keen to attract international clients seeking efficiency and flexibility. This year’s event comes at a crucial moment, as the UK’s changes to its non-dom tax regime create new openings for Cyprus to solidify its position as a leading destination for wealthy individuals and businesses.

Global Appeal for High Net-Worth Individuals

Cyprus’ tax benefits, wealth protection solutions, and modern legal structures were the focal points of the final panel, which also explored investment opportunities on the island. Experts such as Sara Eojourian, Head of Wealth Management at Athlos Capital, discussed the array of investment solutions that Cyprus offers, particularly for HNWIs. These services not only provide personalized wealth management but also come at competitive costs, making them an attractive option for international investors.

Conclusion: Cyprus, an Attractive Option for International Clients

In conclusion, Cyprus is increasingly recognized as a top destination for both high-net-worth individuals and international businesses. Thanks to its competitive tax system, business-friendly legal environment, and strategic location, Cyprus is solidifying its status as a prime hub for foreign investment. As global tax policies continue to evolve, Cyprus remains well-positioned to provide attractive opportunities for clients and businesses seeking stability, efficiency, and significant fiscal benefits.