According to Politico, German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, and Belgian Prime Minister Bart De Wever have called for measures to simplify business procedures and reduce regulatory burdens.
In particular, Germany, Italy, and Belgium are seeking a mechanism that would allow them to intervene in the European Parliament's legislative process and, where necessary, suspend initiatives that could impose excessive burdens on governments and businesses.
The EU leaders believe that such a mechanism would help strengthen the European Union's weakening economic competitiveness.
The letter also states that the EU should aim to prevent excessive regulation from leading to the "irreversible loss of European industrial capacity and a further weakening of investment and competitiveness."
The leaders called for a significant acceleration of planning and approval procedures, as well as the temporary suspension of certain regulations under a proposed new "priority rule".
According to International Data Corporation (IDC), Nvidia's shipments of artificial intelligence accelerators to China fell by 44% to 678,000 units in the first half of 2026. The US company's market share stood at 34%. The decline was driven by US export restrictions and the increasing adoption of domestically manufactured alternatives in China.
IDC estimates that 9 out of 11 Chinese companies increased their shipments compared with the same period of the previous year. Huawei more than doubled its shipments to 572,000 units, capturing 28% of the market. Among other manufacturers, T-Head (Alibaba) accounted for 7%, Cambricon for 5%, Kunlunxin (Baidu) for 4%, and Hygon for 3%.
Total shipments of AI accelerators in China reached 2.008 million units. Shipments of graphics processing units (GPUs) declined by 26% to 991,000 units, while shipments of specialized non-GPU accelerators rose by nearly 80% to 1.016 million units, surpassing GPU shipments for the first time.
Four Chinese companies (Huawei, T-Head, Kunlunxin, and Cambricon) accounted for 95% of the non-GPU segment. The main customers for these products are government institutions, internet companies, and telecommunications operators. According to IDC, competition is increasingly shifting from the performance of individual processors to the efficiency of computing clusters.
According to China's customs authorities, exports of hybrid vehicles to the European Union tripled in the first half of 2026, rising from $2.5 billion to $7.5 billion. Compared with 2021, when exports stood at $845 million, their value increased ninefold.
Following the introduction of additional EU tariffs on Chinese electric vehicles in 2024, Chinese automakers shifted their focus towards hybrid vehicles, which were not subject to these tariffs.
According to Jefferies, SAIC, BYD, and Chery account for more than 90% of Chinese hybrid vehicle exports to the EU.
Schmidt Automotive Research estimates that Chinese brands captured 15% of the European electric vehicle market for the first time in the second quarter of 2026. Their share of the plug-in hybrid segment increased to 25%.
On October 9, China and the EU reached an agreement to restrict exports of Chinese hybrid vehicles. According to Car Industry Analysis, the new conditions could complicate operations for Chinese manufacturers but are unlikely to halt their expansion in the European market.
In response, Chinese companies are considering localizing production within the EU. In particular, Changan plans to begin manufacturing vehicles in the region in 2027.
According to the International Monetary Fund (IMF), net government borrowing in advanced economies is expected to reach 5.2% of GDP in 2026. This would be the highest level since 2021, when government spending increased sharply in response to the COVID-19 pandemic.
The IMF projects that the largest fiscal deficits will be recorded in the United States and China. In both countries, deficits could reach or exceed approximately 8% of GDP. Rising fiscal deficits are accompanied by higher public debt servicing costs and an increasing need for additional borrowing.
According to IMF estimates, global public debt, which stood at approximately 94% of global GDP in 2025, could reach 100% of GDP by 2029. This would bring the ratio close to its highest levels recorded since the end of World War II.
The IMF warns that rising public debt burdens and borrowing requirements are limiting governments' ability to finance additional spending and respond to economic crises. To safeguard public finance sustainability, the Fund recommends a gradual and sustained process of fiscal consolidation.
CERR Public Relations Sector
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