China-Russia Ties Pose Risk to EU-China Ties

Today’s ESG Updates

• EU Says China-Russia Ties Now Define Relations:  Following a tense Beijing summit, the EU urges China to push Russia toward peace 
• UK, Australia Deepen AUKUS and Economic Alliance: New 50-year defence treaty to boost submarine programs, jobs, and Indo-Pacific security ties 
• Alphabet Faces EU Antitrust Complaint Over App Rules: EU regulators are assessing accusations of Alphabet’s DMA violations
• Oil Rises as Trade Optimism Offsets Supply Concerns: Oil prices climb on trade hopes despite potential rise in Venezuelan output and reduced Russian gasoline exports.

EU says China-Russia relations are a “determining factor” in ties

Following a recent summit in Beijing, the EU Chief has warned that China’s ties with Russia were now the “determining factor” in its relations with the EU. The EU has expressed their expectations for China to utilise its influence to convince Russia to accept a ceasefire and enter peace talks. The EU has imposed tariffs on EVs imported from China, while China has announced probes, potentially retaliatory, into imported European pork, brandy, and dairy products. However, the bloc has agreed to an “upgraded” mechanism to address delays for rare earth mineral exports given China’s dominance in the industry. Furthermore, to combat climate change, China and the EU have both agreed to increase cooperative efforts in energy transition and have committed to accelerating global renewable energy deployment. Amid evolving geopolitical tensions, companies can keep up with market developments using ESG tools.

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Further reading: EU says China’s links with Russia now ‘determining factor’ in ties

Britain and Australia to strengthen AUKUS commitment and their economic ties

Britain and Australia’s defence and foreign ministers recently held talks in Sydney to discuss boosting cooperation, including deepening their commitment to the AUKUS nuclear submarine partnership. The AUKUS is one of Britain’s key defence partnership, and an Australia-UK treaty, awaiting signature, will confirm Britain’s commitment for the next 50 years. This new treaty will underpin each country’s submarine programmes for that period, creating tens of thousands of jobs, and is expected to be worth up to £20B to Britain in exports over the next 25 years. Both countries are deepening ties to shape collective security in the Indo-Pacific region amid increasing uncertainty. Britain’s participation in the Talisman Sabre exercises, where approximately 40,000 troops from 19 countries are participating in, have significantly increased with 3,000 troops now taking part. 

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Further reading: Britain, Australia to deepen AUKUS commitment, economic ties

Alphabet receives an EU antitrust complaint filed by six digital rights groups

Alphabet was recently hit with an EU antitrust complaint from six human and digital rights groups, which urged EU regulators to investigate the company’s compliance with legislation requiring it to make it easier for users to uninstall software apps. The complaint filed by the groups stated that Alphabet did not comply with the EU’s Digital Markets Act (DMA), specifically with the requirement that gatekeepers or companies which provide a core platform service to business users shall technically enable users to easily uninstall software applications on the gatekeeper’s operating system. The European Commission was called on to investigate the issue, while Alphabet has refuted the allegations. The Commission has confirmed the receipt of this complaint and is currently assessing it under its standard procedures. 

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Further reading: Alphabet hit with EU antitrust complaint by six digital rights groups

Oil gains as trade talk optimism outweighs potential higher Venezuelan supply

Oil prices recently increased as trade talk optimism supported the outlook for both the global economy and oil demand, outweighing news of the potential for more oil supply from Venezuela. Alongside stock markets, oil has gained support from the prospect of more trade deals between the U.S. and trading partners with the upcoming August 1 deadline, whereby new tariffs will be imposed by the U.S. Meanwhile, the U.S. is preparing to allow partners of Venezuela’s state-run PDVSA to operate with limitations in the sanctioned nation. Experts predict that Venezuelan oil exports may increase by slightly more than 200,000 barrels per day, which may ease tightness in the heavier crude market and benefit U.S. refiners. Contracts for Brent and WTI have advanced around 1%, driven by reports of cuts to Russian gasoline exports. For more industry updates and developments, companies can stay informed using ESG tools.

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Further reading: Oil gains as trade talk optimism offsets potential higher Venezuelan supply

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: wu yi