EU Plans 50% Tariff on Steel Imports from July; Chinese Automakers Boost Investment in Serbia; Huawei Proposes Semiconductor "Tau (τ) Law"

On May 19, the European Parliament adopted a resolution by a vote of 606 in favor and 16 against, raising import tariffs on steel to 50% and cutting the annual duty-free import quota by 47% to 18.3 million metric tons. The measure stems from a 2025 proposal by the European Commission aimed at addressing industry challenges caused by global overcapacity since 2013. The new rules are set to take effect on July 1, pending final approval by EU member states. On May 27, Serbian President Aleksandar Vučić announced that Chinese companies will inject an additional €940 million (approximately $1.1 billion) into Serbia in fields including artificial intelligence, humanoid robotics, automotive components, and energy, with funds beginning to arrive in July. Participating enterprises include Minth Group, Linglong Tire, Xingyu Automotive Lighting, Agibot, Weichai Power, Fort Tech, Renergy New Energy, and China Construction Fourth Engineering Division Corp. The China-Serbia Free Trade Agreement entered into force in 2024; over the past decade, cumulative Chinese direct investment in Serbia has reached approximately €8 billion, accompanied by a similar scale of infrastructure loans. On May 25, Huawei’s Board Member He Tingbo formally introduced the “Tau (τ) Law” at the 2026 International Symposium on Circuits and Systems, proposing “temporal scaling” as a new paradigm for semiconductor advancement to replace traditional “geometric scaling.” This approach leverages technologies such as logic folding to compress signal propagation latency, thereby enhancing transistor density and system performance. Huawei plans to progressively commercialize related technologies between 2026 and 2035, continuously launching high-performance smartphone chips. On May 28, NIO CEO William Li stated that rising prices of raw materials—including nickel, cobalt, lithium carbonate, and memory chips—have increased per-vehicle costs by approximately RMB 10,000 this year. He noted that automakers have limited bargaining power in procuring commodities and key chips, making it difficult to alleviate cost pressures in the short term, which must therefore be absorbed internally. On May 26, German automotive supplier Webasto announced plans to establish a joint venture with Zhejiang-based Fujia Technology Co., Ltd., with Webasto holding a 30% stake. The JV will focus on the research and production of Fixed Panoramic Glass Roofs (FTM), integrating glass pre-processing and system integration capabilities to develop FTM products for the Chinese market featuring ambient lighting, smart sunshades, solar panels, and in-vehicle entertainment functions. The transaction is pending approval from China’s antitrust authorities. Taiwan-based solid-state battery company ProLogium Technology announced its intention to list on Nasdaq through a merger with SPAC company TDAC. The combined entity will be valued at $3.8 billion, trade under the ticker symbol “PRLG,” and is expected to complete the transaction in the second half of 2026. Proceeds will fund expansion of its fourth-generation solid-state batteries and advance construction of its Dunkirk, France gigafactory (targeting Q2 2029 mass production and adding 4 GWh annual capacity by 2030). Depending on market conditions, the company also plans to scale up its Taiwan factory capacity from 1 GWh to 3 GWh by 2035. Since 2013, ProLogium has delivered over 2.4 million cells, primarily serving drone, defense, and satellite sectors, and expects around 60% of its output to supply the electric vehicle market by 2032.