Summary

• China Audit: Policy Shift on the Horizon?
• May Trade Talks Recap: Where Are We Now?
• A Fresh Take on China: Insights from a Belgian Entrepreneur
• You’re Invited! CWOW Coming Up

🔥Hot topics

🔴China Audit

The UK Government’s much-awaited China Audit is due next month. The report promises a comprehensive evaluation of China’s presence in UK supply chains, commercial relationships, and potential security vulnerabilities.

The re-assessment was commissioned after Prime Minister Starmer took office in July 2024 and is reported to focus on the UK’s economic dependencies in key sectors like technology, manufacturing, and finance, alongside national security risks linked to Chinese investments.

Policy implications? The Audit is expected to impact sectors deeply intertwined with China’s business and tech landscape, including Technology & Telecommunications, Manufacturing & Automotive (especially the EV sector), Finance & Investment, Energy & Infrastructure, and Retail.

Analysts are looking at potential shifts like beefed-up security for hardware, software, and infrastructure, fresh rules for 5G, AI, and semiconductor production, a move towards diversifying suppliers, updated guidelines for foreign investments, a rethink of financial risk strategies, and policy changes aimed at reducing Chinese involvement in vital infrastructure and green energy initiatives.

• https://www.linkedin.com/posts/ukcommittee_ukncc-chief-executive-ollie-shiell-offered-activity-7331347041417113601-lMCs?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAFuTc0BdtLeiDe1OM1ceTi50tXtKDok0LE
• International collaboration in technology emphasised | The Independent
• UK should not fear trade with China – but it needs to keep risks in check | Gerard Lyons | The Guardian

🔴Trade Talks and US Court Ruling

Most of Trump’s tariffs have been blocked by the Court of International Trade which found the president overstepped his authority by imposing those across-the-board duties in a sweeping ruling on May 28. White House appealed, and tariffs on autos, steel and aluminum remain in place. Here’s a recap of the three most notable ongoing trade talks that reached their big or small milestones in May.

US-China Trade Talks: The US and China agreed on a 90-day pause to their tariff war in Geneva, a significant but temporary de-escalation of trade tensions, reducing tariffs by 115% while maintaining a 10% base rate. China has also lifted key non-tariff countermeasures, including export restrictions and the blacklisting of U.S. firms. A new bilateral trade dialogue mechanism has been established, though underlying geopolitical challenges remain.

US-UK Trade Talks: The US and UK announced a framework for a new bilateral trade agreement, the Economic Prosperity Deal (EPD), on May 8. This framework aims to reduce tariffs and non-tariff barriers across sectors such as steel, aluminium, automotive, and agriculture. The deal is expected to finalise later this year with further negotiations. The UK secured a 10% baseline tariff rate.

US-EU Trade Talks: Tense negotiations between the US and the EU led to the postpone of US tariffs up to 50% on EU imports, allowing  more time for talks. The main sticking point is the US insists on maintaining a baseline 10% tariff, while the EU pushes for the lowest possible tariffs or even mutual elimination. Hopes are still there for a deal but progress is slow and subject to political pressure.

• US court blocks most Trump tariffs, says president exceeded his authority | Reuters
• US-China trade deal as it happened: Tariffs to be lowered for 90 days, US stocks rally | Reuters
• Trump delays EU tariffs until July 9, European markets rally | Reuters
• Revealed: How much the US-UK trade deal will save UK economy from Trump tariffs | The Independent

✨ Insights

Ever wondered how the intricate dance between Europe, the UK, and China has evolved and where it’s headed next? You may find this episode of our podcast thought-provoking. Sharing insights with Ting Zhang FRSA, Founder & CEO of Crayfish.io, is Pascal Coppens, a Belgian tech entrepreneur and author who’s witnessed China’s remarkable transformation since 1990. He argues that a nuanced view of China is essential for the West to take advantage of the opportunities that China’s transition offers. We invite you to give it a listen and join the conversation!

🎙️ Spotify: https://lnkd.in/egu8YB2y ▶️ Youtube: https://lnkd.in/dJN3gAQj

🪄 Noticeboard

Before you go, mark your calendar! Here’s a heads up on upcoming events, followed by a recap of May’s noteworthies…

• All welcome! Cambridge Wide Open Week, June 9-13, 2025. Explore the vibrant life sciences ecosystem: investor showcases, talks, networking events & more. We will join the SJIC community’s open-door activities on June 11, CWOD. Come and say hello! Be curious!

• Is China Still Right for Your Manufacturing? Find out in a free webinar put together by Flanders-China Chamber of Commerce (FCCC) in late June (Date and Time to be announced). Crayfish.io Founder & CEO Ting Zhang and Director of Business Service Jane Ru will reveal key trends, best practices, and a real-world roadmap for European companies establishing facilities in China. Get your questions answered! Tune in for updates.

• May’s events calendars are usually crowded, but this year, the UK-China business scene was especially vibrant. Among the several events we had the privilege of attending, two left a particularly lasting impression.  Click the photo below for more information.

• Lastly, a visit by a listed Chinese pharma group to Owlstone Medical, a global leader in breath biopsy technology in Cambridge. Click the photo for more details.