By Gao Jun Zhao
Relevant to EUDR implementation
A fully packed week – meetings with car, tire & vehicle parts manufacturers.
ZC Tire, the largest Chinese tire company, is one of them. They are keeping a watchful eye on the development of EU Deforestation Regulation (EUDR), which appears to them a bit ridiculous – ZC has already made great efforts since the beginning of last year to ensure compliance through working with upstream suppliers, plantations as well as being supported by Preferred by Nature. However, this regulation was postponed and then simplified (they are skeptical but will not be surprised by whatever the EC’s next move is). They are very curiously asking me if the companies and farmers in EU have less understanding and thereby are not ready as the rubber processors (and smallholders) in Thailand, Vietnam, etc.?
Another topic: just over the past few weeks, the No.1 battery manufacturer, CATL and No.1 Chinese tire company ZC successfully went listed on Hongkong and Shanghai Stock Exchange one after another. Most of the net proceeds from the listing will be used for the new factories abroad.
More boosting, during this week, I heard that a growing number of other companies in the vehicle, battery, tire, and parts industries in China are planning initial public offerings over the next few years.
The consensus-beating figures in their growth point to the resilience of these industries, even as they have been hit with a fresh set of challenges: tariffs, non-tariff barriers, anti-dumping investigations, automation, and stiff competition in both home and overseas markets.
As they are being listed and going global, they are showing stronger interests than ever in meeting the regulations, such as EUDR, EU battery passport, CSDDD, CBAM, and wide sustainability topics. Actually, some of them are already forging ahead with concrete plans to achieve these goals.
