This episode contains segments on:

• China’s February Price Indices;
• 2026 Government Work Report; and
• China’s January and February Foreign Trade Data.

Listeners are also invited to attend the European Chamber’s events on the 2026 Two Sessions in Beijing (or online) and in Shanghai.

Contact:

We’d love to hear your feedback. Contact us at [email protected].

Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.

Read more:

China’s CPI in February 2026

https://www.stats.gov.cn/sj/zxfb/202603/t20260309_1962732.html

China’s PPI in February 2026

https://www.stats.gov.cn/sj/zxfb/202603/t20260309_1962729.html

2026 Report on the Work of the Government

https://www.gov.cn/lianbo/fabu/202603/content_7060774.htm

January – February 2026 Foreign Trade Data

http://www.customs.gov.cn/customs/2026-03/10/article_2026031009440276400.html

http://www.customs.gov.cn/customs/2026-03/10/article_2026031012080948428.html

http://www.customs.gov.cn/customs/2026-03/10/article_2026031009440193461.html

Two sessions events

https://www.europeanchamber.com.cn/en/upcoming-events/28859/_Hybrid_2026_Two_Sessions_Redefining_China_s_Path

https://www.europeanchamber.com.cn/en/upcoming-events/28784/Two_Sessions_2026_Navigating_China_s_New_Development_Blueprint_in_2026

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catch-up on China’s business landscape.

RUI: This episode was recorded on 11th March 2026.

(Music)

RUI: China’s Consumer Price Index—or CPI—rose by 1.3 per cent year-on-year in February 2026, the fastest pace in over a year.

XINHE: This surge was in large part driven by an increase in the prices for food products and services, which rose 1.7 per cent and 1.6 per cent year-on-year respectively. Excluding a brief slowdown in January, food price inflation has been driving a recent upward trend in the CPI across recent months. In February alone, increases in the prices for food, tobacco, alcohol and dining out were responsible for 31.5 per cent of the overall increase in the CPI. Five of the seven other major categories also saw increases, most notably daily necessities and services, which recorded a 2.8 per cent jump in prices.

(Music)

RUI: China’s Producer Price Index—or PPI—fell by 0.9 per cent year-on-year, the slowest pace of decline since July 2024.

XINHE: February marks the third consecutive month of slowing PPI deflation, narrowing from negative 2.2 per cent year-on-year in November 2025 to negative 0.9 per cent year-on-year in February 2026. This is in part a result of a slowdown in deflation for the means of production—a category that includes raw materials—which registered a 0.7 per cent decrease year-on-year in February.

While this is a positive reflection of the government’s efforts to combat deflation, falling prices remain in many product categories. In February, prices in the mining industry fell by 5.3 per cent year-on-year, the overall price of consumer goods decreased by 1.6 per cent year-on-year and the price of clothing contracted by 1.8 per cent year-on-year.

(Music)

RUI: On 5th March China released the Report on the Work of the Government at the 2026 meeting of the National People’s Congress.

XINHE: China set a lower growth target of between 4.5 and five per cent, an acknowledgement of the country’s slowing economy. Notably, the report includes stronger language on addressing ‘involution-style competition’, suggesting that government efforts to combat underlying structural issues in China’s economy will continue. The report also mentions the need to boost imports, a topic repeatedly raised by China’s trading partners, including the European Union.

(Music)

RUI: The value of exports from China to the rest of the world surged between January and February 2026, jumping 21.8 per cent year-on-year according to data released by the General Administration of Customs on 10th March. Imports to China also increased 19.8 per cent year-on-year in the same period.

XINHE: This surge was in part driven by strong exports in high tech industries. In value terms, exports of integrated circuits rose by 72.6 per cent and automobiles by 67.1 per cent. Notably, exports of lower-value-added items also rose in value terms, with furniture exports in particular increasing by 24.7 per cent.

By region, exports from China to ASEAN and the European Union rose by 29.4 per cent and 27.8 per cent year-on-year respectively. Amid shifting tariff regimes and other tensions, exports to the US continued to fall, dropping 11 per cent year-on-year.

China’s imports of some high-tech products, notably integrated circuits—which includes semiconductors—and automatic data processing equipment saw sharp increases, rising 39.8 per cent and 68.7 per cent year-on-year respectively.

(Music)

RUI: The 2026 Two Sessions—China’s signature annual political event—is drawing to a close in Beijing, with the final version of the 15th Five-year Plan expected to be released shortly after.

Join us in Beijing or online on 13th March, and in Shanghai on 17th March for two events during which experts will discuss key takeaways from the Two Sessions and their implications for businesses and China’s economy.

XINHE: You can find more information visiting the link in the description.

(Music)

RUI: Thanks for listening, and don’t forget to tune in next week.

XINHE: In the meantime, please find useful links in the episode notes.