This episode contains segments on:

• China’s April industrial production
• April retail sales of consumer goods
• Average annual wages of urban employees in 2025
• China’s Justice Ministry ruling on EU Foreign Subsidy investigation
• January-April fixed asset investment

Also, listeners are invited to join the European Chamber’s annual Business Confidence Survey launch online on 27th May.

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:

Industrial Production

https://www.stats.gov.cn/sj/zxfb/202605/t20260518_1963731.html

Retail Sales of Consumer Goods

https://www.stats.gov.cn/sj/zxfb/202605/t20260518_1963727.html

Average Annual Wages of Urban employees

https://www.stats.gov.cn/sj/zxfb/202605/t20260515_1963707.html

China’s Justice Ministry ruling on EU Foreign Subsidy investigation

http://en.moj.gov.cn/2026-05/18/c_1183998.htm

https://www.europeanchamber.com.cn/en/press-releases/3784/european_chamber_statement_on_the_state_council_regulations_on_countering_improper_extraterritorial_jurisdiction_by_foreign_states_decree_835_

China’s Fixed Asset Investment

https://www.stats.gov.cn/sj/zxfb/202605/t20260518_1963730.html

https://www.stats.gov.cn/sj/zxfbhjd/202605/t20260518_1963741.html

European Business in China Business Confidence Survey 2026 Official Launch Event

https://www.europeanchamber.com.cn/en/upcoming-events/29246/_Hybrid_European_Business_in_China_Business_Confidence_Survey_Launch_2026

Transcript:

RUI: Hello and welcome to China ShortCuts,

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

RUI: This episode was recorded on 20th May 2026.

(Music)

RUI: Production at larger industrial firms in China—those with an annual income of over 20 million Chinese yuan—expanded by 4.1 per cent year-on-year in April, down from 5.7 per cent in March, according to data released by the National Bureau of Statistics on 18th May. This represents the slowest pace of growth in over a year.

FRANCESCA: Out of the 41 main industrial sectors gauged by the headline figure, 29 registered y-o-y growth in April. High levels of production growth were recorded in several key manufacturing industries, including automotive, with this coming in at 9.2 per cent; the computer, communications, and other electronic equipment manufacturing, which grew by 15.6 per cent; and, the railway, shipbuilding, aerospace and other transportation equipment manufacturing, which expanded by 8.2 per cent.

(Music)

RUI: Total retail sales of consumer goods increased 0.2 per cent year-on-year in April, the lowest reading since December 2022. Sales in the automotive sector performed particularly poorly, falling by 15.3 per cent, as did sales of home appliances;  as well as building and decoration materials; and furniture which decreased by 15.1, 13.8 and 10.4 per cent respectively.

Online sales of retail goods performed better, increasing by 5.7 per cent compared to a year prior in January-April 2026, and now account for a quarter of all retail goods sales in China.

FRANCESCA: Speaking at a press conference on the data, Chinese National Bureau of Statistics spokesperson Fu Linghui noted that factors, including a limited willingness and capacity to spend among households, continue to constrain consumption growth. Further policy action is thus still needed for China to achieve its goal of boosting consumption, as prioritised in the country’s 15th Five-year Plan. 

 (Music)

RUI: Average annual wages of private sector urban employees rose by 2.9 per cent in 2025 in real terms, to 71,590 Chinese yuan per annum. Over the same timeframe, average annual wages of urban employees working in the non-private sector—which includes state-owned companies—grew by 4.2 per cent to 129,441 Chinese yuan.

FRANCESCA: In the private sector, the strongest increase in real wages was registered in the transportation, warehousing, and postal services sector, with this coming in at 7.6 per cent. The manufacturing sector ranked second, in which wages grew by 6.4 per cent.

Elsewhere, wages in the real estate industry and leasing and business services declined, falling by 4.7 per cent and 0.4 per cent respectively in 2025.

RUI: Sustained increases to real wages remain essential if Chinese policymakers are to achieve their goals of boosting domestic consumption, and better balancing supply and demand growth, as outlined in the country’s latest Five-year Plan. In the face of weak domestic demand, many firms operating in China are now increasingly relying on exporting to overseas markets, contributing to an increase in the country’s trade imbalance with key trading partners, including the EU, resulting in increased trade tensions.

(Music)

RUI: The Chinese Ministry of Justice issued a notice on 15th May, stating that the EU’s investigation into Nuctech—conducted under the bloc’s Foreign Subsidies Regulation—constituted unlawful extraterritorial jurisdiction.

FRANCESCA: Notably, the development follows the publication of the State Council’s Regulations on Countering Improper Extraterritorial Jurisdiction by Foreign States—or Regulation 835—on 13th April. The State Council decree places legal liability on “any organisation or individual [that] implements or assists in the implementation of improper extraterritorial measures by a foreign state, thereby infringing upon the lawful rights and interests of Chinese citizens or organisations”, without clearly defining what constitutes “improper extraterritorial jurisdiction” in the eyes of the Chinese authorities, thus adding to the uncertainty that European companies face when doing business in China.

RUI: The move comes against a backdrop of the EU developing its own legal toolkit aimed at protecting the integrity of its single market and the competitiveness of its industrial base in recent years. Moreover, the EU has demonstrated a willingness to begin to use these tools—including via the launching of anti-subsidies investigations in a number of sectors—as a way of pushing for a more balanced relationship with China, following years of limited progress being made on areas of key concern to the EU, not least asymmetric market access.

(Music)

RUI: According to data released by the National Statistics Bureau on 18th May, urban fixed asset investment in China totaled 14.13 trillion Chinese yuan in the first four months of the year, a contraction of 1.6% compared to a year prior.

This decrease was predominately caused by a drop in investment related to real estate development, which fell sharply by 13.7 per cent. By contrast, investment in both infrastructure and manufacturing increased by 4.3 and 1.2 per cent respectively.

(Music)

RUI: On 27th May, the European Chamber will launch the latest edition of its flagship Business Confidence Survey, which provides a snapshot of business sentiment among European companies operating in China, as well as their two-year outlooks.

FRANCESCA: This year’s data highlights that after several years of deterioration, business confidence in the China market may be approaching an inflection point, and could even be set to improve should the right policies be implemented.

RUI: For further information on the report, visit the European Chamber’s website at the link in the episode notes.

(Music)

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

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

This episode contains segments on:

• China’s April foreign trade data;
• April official purchasing managers’ index;
• April Consumer Price Index and Producer Price Index;
• State Council executive meeting;
• Trump’s visit to China;
• European Chamber flash survey results on the Impact of the Middle East Conflict on European Business in China

Also, listeners are invited to join the European Chamber’s annual Business Confidence Survey launch on 27th May.

Contact Us:

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:

April foreign trade data:

http://www.customs.gov.cn/customs/2026-05/09/article_2026050910092373174.html

April PMI:

https://www.stats.gov.cn/sj/zxfb/202604/t20260430_1963473.html

https://www.stats.gov.cn/english/PressRelease/202605/t20260506_1963595.html

April CPI:

https://www.stats.gov.cn/sj/zxfb/202605/t20260511_1963659.html

https://www.stats.gov.cn/sj/sjjd/202605/t20260511_1963657.html

April PPI:

https://www.stats.gov.cn/sj/zxfb/202605/t20260511_1963658.html

https://english.news.cn/20260511/8fc7920a97e641f696a2f8f16d4ebf89/c.html

State Council executive meeting:

https://english.www.gov.cn/news/202605/09/content_WS69ff2ff4c6d00ca5f9a0ad96.html

European Chamber Flash Survey: Impact of the Middle East Conflict on European Business in China

https://www.europeanchamber.com.cn/en/press-releases/3788/

Business Confidence Survey 2026 Launch:

https://www.europeanchamber.com.cn/en/upcoming-events/29246

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 13th May 2026.

(Music)

Rui: According to data released by the General Administration of Customs on 9th May, China exported 359.4 billion US dollars’ worth of goods to the rest of the world last month, up 14.1 per cent compared to a year prior. The value of imports to the country also grew over the same time period, with China importing 274.6 billion US dollars’ worth of goods in April, an increase of 25.3 per cent year on year.

Xinhe: As a result, China recorded a trade surplus with the rest of the world of 84.8 billion US dollars over the period.

(Music)

Xinhe: China’s official manufacturing purchasing managers’ index, or PMI, continued to expand for the second consecutive month in April. Data published by the National Bureau of Statistics on 30th April showed that China’s manufacturing activity remained in expansion territory at 50.3 points, above the 50-point benchmark separating growth from contraction, but momentum decelerated slightly from the previous month.

While both production and new orders continued to increase among surveyed manufacturing firms, the pace of production exceeded that of the new orders. At the same time, China’s employment index also contracted, albeit at the highest level since April 2025, registering its best performance over the year at 48.8 points.

Rui: Non-manufacturing PMI declined over the same period. The metric fell to 49.4 points in April, the lowest level in the past year, with contraction seen in both construction and services. New orders also performed poorly, coming in at 44.3 points, again the lowest level registered in the past year, after market demand in the non-manufacturing sector fell.

(Music)

Xinhe: According to data published by the National Bureau of Statistics, China’s producer price index, or PPI, jumped 2.8 per cent year-on-year in April, registering a second month of consecutive growth after 41 consecutive months of decline.

This rebound was primarily driven by cost-push inflation rather than an increase in demand, with costs for inputs including oil, gas, chemical materials and non-ferrous metals all rising. Consequently, although factory gate prices are no longer falling, manufacturers continue to see their profit margins diminish.

Rui: China’s consumer prices index, or CPI, also registered an expansion in April, growing by 1.2 per cent compared to a year prior. Increases in transportation energy prices contributed to this.

(Music)

Xinhe: On 9th May, Chinese Premier Li Qiang chaired a State Council executive meeting during which strategic priorities for the start of the China’s 15th Five-year Plan were outlined. Points covered included, the need to:

• better coordinate supply and demand, as well as the need to implement and refine measures to expand capacity and improve quality in the service sector;
• stabilise employment and strengthen China’s social safety net;
• enhance China’s basic research capabilities; and
• defuse risks relating to the real estate sector, local government debt, and small and medium-sized financial institutions.

(Music)

Rui: US President Donald Trump travelled to China today, 13th May, for the start of a three-day state visit – his first since November 2017, which will include a meeting with Chinese President Xi Jinping.

Xinhe: Against a backdrop of escalating US-China trade and investment tensions—with European businesses suffering as collateral damage—it is a positive that both leaders are meeting face to face. While the Chamber does not expect the visit to culminate in the signing of a ‘grand deal’, nor to address systemic issues facing the bilateral relationship, we hope it will help to build trust and pave the way for a de-escalation of tensions.

(Music)

Rui: On 12th May, the Chamber published the results of a flash survey on the impact of the Middle East conflict on European businesses operating in China. The survey found that 79% of respondents have been negatively impacted by the conflict.

Xinhe: Of those negatively impacted:

• 81% reported difficulties sourcing inputs from the region, which has already resulted in production stoppages for some, with more anticipated in the coming six months;
• two-thirds are facing logistics challenges, primarily related to the increased cost of transport and longer transport times;
• energy-related costs have increased for two-thirds; and
• just over three in ten have seen demand for their company’s products or services decrease.

Rui: A minority of respondents also reported having adjusted their company strategies as a result of the conflict. The survey found that:

• 28% have adjusted their China supply chain strategies, a figure that jumps to 64% of those surveyed in the chemicals and petroleum sector; and
• one in five have already adjusted, or are considering adjusting, their China investment plans.

The full survey findings can be found on the Chamber’s website via the link in the show notes.

(Music)

Xinhe: The European Chamber, in partnership with Roland Berger, will launch the 2026 edition of its flagship Business Confidence Survey (BCS) on 27th May.

After several years of European business confidence in the China market deteriorating, there are now signs that things may be approaching an inflection point, and could be set to improve should the right policies be implemented.

Rui: Join us online or at the Chamber’s Beijing office later this month, to hear Chamber President Jens Eskelund and representatives from each of the Chamber’s chapters present on the report’s key findings.

This episode contains segments on:

• China’s March industrial profits;
• China’s March inbound foreign direct investment;
• Q1 per capita disposable income;
• China issues warning over the EU’s Industrial Accelerator Act.
• The European Chamber is conducting a flash survey among its members on the impact of the Middle East conflict on European companies in China.

Contact Us:

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 Industrial Profits March  

https://www.stats.gov.cn/sj/zxfb/202604/t20260427_1963403.html

China’s Inbound Foreign Direct Investment (FDI) March

https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2026/art_5129fc44d6584feca60c898006e75e21.html

Q1 Per Capita Disposable Income

https://www.yicaiglobal.com/news/disposable-income-tops-cny10000-per-head-in-17-chinese-provinces-in-first-quarter

China issues warning over the EU’s Industrial Accelerator Act

https://www.globaltimes.cn/page/202604/1359938.shtmlhttps://single-market-economy.ec.europa.eu/document/download/9bc8eb85-4d43-4025-be7b-c86b9f3648ec_en?filename=Proposal%20establishing%20measures%20for%20industrial%20capacity%20and%20decarbonisation%20in%20strategic%20sectors%20.pdf

Transcript:

RUI: Hello and welcome to China ShortCuts,

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

RUI: This episode was recorded on 29th April 2026.

(Music)

FRANCESCA: Profits of major industrial enterprises in China—firms with an annual income of at least CNY 20 million per annum—jumped 15.5% year-on-year in Q1.  

RUI: Particularly strong performance was seen in the manufacturing sector, where major enterprises registering a 19.1 per cent increase in profits, as well as the mining industry, where profits grew on average by 16.2 per cent.

FRANCESCA: By contrast, the picture was bleaker for major industrial enterprises operating in the electricity, heat, gas and water production and supply space, where industrial profits fell by 3.2 per cent relative to Q1 2025.

Company bottom lines also took a hit in the automobile manufacturing industry — an area where  oversaturation and ongoing price wars has led to companies having to rely on high sales to compensate for razor-thin margins. Profits in the sector among major industrial firms fell by 17.7 per cent during the first three months of the year.

(Music)

FRANCESCA: China received 249.6 billion yuan in foreign direct investment, or FDI, between January and March 2026 according to data published by the Ministry of Commerce, a 7.3 per cent drop year-on-year.

RUI: Keeping in line with previous years, increased FDI continued to flow into high-tech industries, with this growing in value terms by 30.7 per cent year-on-year to CNY 102.73 billion.

FRANCESCA: Overall, FDI into high-tech industries in China accounted for 41.2 per cent of total FDI received by the country, up 12-percentage points relative to Q1 2025. The fastest rate of growth was seen in R&D and design services, where FDI grew by 127.8 per cent in year-on-year between January to March 2026.

(Music)

FRANCESCA: Average per-capita disposable income across China averaged CNY 12,782 in Q1 2026, according to data published by China’s National Bureau of Statistics.

RUI: This represents a nominal increase of 4.9 per cent year-on-year, or four per cent in real terms after excluding price factors. Disposable income exceeded CNY 10,000 per person in 17 of China’s 31 provincial-level regions in Q1 2026. Shanghai ranked first at CNY 26,689 per head, Beijing second at CNY 24,587, and Zhejiang province third at CNY 23,611.

Disparity remains between per-capita rural and urban disposable income levels, with the former standing at CNY 7,433 and the latter at CNY 16,549 in Q1 2026.

FRANCESCA: Chongqing, Inner Mongolia, Anhui, Hubei, and Hunan were the strongest performers in central and western China. This was partly due to increases in industrialisation and urbanisation, as well as the formation of modern industrial clusters in major cities located in the region, leading to an uptick in regional employment and income levels.

While these consistent increases are a positive sign, further expansion of disposable income will be necessary to lift China’s domestic consumption. The mismatch between supply and demand on the Chinese domestic market and subsequent high levels of exports contributed to trade tensions with China’s trading partners, including the EU.

(Music)

FRANCESCA: On Monday 27th April, a spokesperson for the Chinese Ministry of Commerce criticised the EU’s Industrial Acceleration Act, asserting that it, “runs counter to basic market economy principles”, and that the MOFCOM would enact countermeasures if the EU did not take China’s suggestions for the regulation into account.

RUI: Proposed by the EU Commission on 4th March, the Industrial Accelerator Act, or IAA, aims to ensure that manufacturing accounts for 20 per cent of the EU’s GDP by 2035, up from 14.3 per cent in 2025.

 The IAA states the EU will achieve this goal by “accelerating permitting for all manufacturing projects, and by providing a toolbox to provide access to the European single market in a way that prevents strategic dependencies, creates manufacturing jobs, boosts decarbonisation and climate performance and secure access of European citizens and companies to vital commodities and products at all times.”

Notably, it establishes a framework for what ‘Made in Europe’ procurement entails, with this including a framework for the imposition of conditions on foreign direct investments in emerging strategic sectors, where the investment value exceeds EUR 100 million.

FRANCESCA: The IAA is the latest in a set of legal tools introduced by the EU, aimed at protecting the integrity of its Single Market and Europe’s own industrial competitiveness, as well as ensuring reciprocal market access and a level playing field for European companies operating in third markets.

(Music)

RUI: The ongoing conflict in the Middle East has disrupted business operations worldwide. To better understand how European companies operating in China have been impacted, as well as if and what action they are taking in response, the European Chamber has invited all member companies to take a short flash survey.

FRANCESCA: More information about the survey can be found at the link in the show description.

(Music)

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

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

This episode contains segments on:

• China’s Q1 GDP growth;
• China’s March 2026 industrial production;
• China’s March 2026 retail sales;
• Opinions of the State Council on Promoting the Expansion and the Quality of the Service Industry
• Regulations on Countering Improper Extraterritorial Jurisdiction by Foreign States

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 Q1 GDP Growth

https://www.stats.gov.cn/sj/zxfb/202604/t20260417_1963336.html

China’s March 2026 Industrial Production

https://www.stats.gov.cn/sj/zxfb/202604/t20260416_1963329.html

China’s March 2026 Retail Sales

https://www.stats.gov.cn/sj/zxfb/202604/t20260416_1963325.html

Opinions of the State Council on Promoting the Expansion and the Quality of the Service Industry

https://www.gov.cn/zhengce/content/202604/content_7066483.htm

European Chamber Statement on China’s Regulations on Countering Improper Extraterritorial Jurisdiction by Foreign States

https://www.europeanchamber.com.cn/en/press-releases/3784/

Exporting Control: China’s Strategic Toolkit

https://www.europeanchamber.com.cn/en/press-releases/3781/

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 22nd April 2026.

(Music)

RUI: China recorded a GDP growth rate of five per cent year-on-year in Q1 2026, up 0.5 percentage points relative to its Q4 2025 performance.

XINHE: The tertiary sector, which includes the service industry, expanded by 5.2 per cent year-on-year during the January-March period, while the primary and secondary sectors grew at 3.8 per cent and 4.9 per cent respectively.

China’s Q1 growth rate is so far in line with the country’s formal target of achieving “GDP growth of 4.5­–5 per cent, while striving for better in practice”, as outlined in the Chinese Premier Li Qiang’s Report on Work of the Government released at this year’s Two Sessions.

Rui: It is also consistent with the 15th Five-Year Plan, which details the country’s intention to support the development of frontier technologies over the next five years. In this regard, investment in high-tech industries grew by 7.4 per cent during the first three months of the year, significantly outpacing overall investment growth, which increased by 1.7 per cent.

Xinhe: During Q1 2026, imports to China grew relatively faster than exports from the country to the rest of the world. The former increased by 19.6 per and the latter by 11.9 per cent compared to Q1 2025’s levels, a positive sign given that trade imbalances have been a persistent source of concern for many of China’s trading partners, including the EU.

Despite this development, China still ran a trade surplus of CNY 1,855 billion in Q1 2026 with the rest of the world.

(Music)

RUI: In March 2026, production at larger industrial firms in China—with an annual income of over CNY 20 million—grew by 5.7 per cent year-on-year, down slightly from 6.3 per cent in February 2026.

XINHE: Production growth in the manufacturing industry was particularly strong, coming in at six per cent year-on-year, with the mining and utilities industries recording 5.7 per cent and 3.5 per cent growth respectively.

30 out of 41 major industries surveyed recorded increases in production in March. The largest growth was registered in the railway, shipbuilding, aerospace and other transportation equipment manufacturing sector, at 13.3 per cent year-on-year.

New energy vehicle production recorded a 1.2 per cent year-on-year increase, after production had fallen by 13.7 in February 2026.

(Music)

RUI: Total retail sales of consumer goods in China grew by 1.7 per cent year-on-year in March, a slowdown relative to the 2.8 per cent growth rate seen a month prior.

XINHE: Excluding weak automobile sales—which were down 11.8 per cent—retail sales of consumer goods grew at a healthier 3.6 per cent. Online retail sales of goods and services continued to outpace sales growth in physical stores, with the former accounting for a quarter of all retail sales of consumer goods in China.

(Music)

RUI: On 21st April, China’s State Council issued the Opinions on Promoting the Expansion and Quality Improvement of the Service Industry, which calls for the country’s service industry to be further developed in order to support China’s “industrial upgrading, meeting people’s livelihood needs, and driving employment expansion.”

XINHE: The document calls for increased policy support for incubators for emerging industries and future industries; for China to improve its inspection, testing and certification capacities, benchmarking them against international standards; and for China to improve its ability to respond to foreign-related intellectual property risks.

In the artificial intelligence domain, the opinions outline plans for the implementation of China’s AI+ initiative, which aims to have at least 70 per cent AI-enabled terminals and agents in key industries by 2027.

Rui: The opinions also call for further opening up in the service industry, including via the expansion of pilot initiatives relating to value-added telecommunications services, biotechnology and wholly foreign-owned hospitals. However, despite these positive signals, businesses will be waiting to see tangible improvements before committing to large scale investments.

(Music)

Xinhe: On 15th April, the European Chamber released a statement on the Regulations on Countering Improper Extraterritorial Jurisdiction by Foreign States, which was published by the State Council on 13th April.

Rui: While the Regulations’ stated aim is to serve as a defensive instrument for China to protect its interests from extraterritorial provisions enacted by foreign states, they contain several provisions that may impact businesses. This includes a provision that places liability on “any organisation or individual [that] implements or assists in the implementation of improper extraterritorial measures by a foreign state, thereby infringing upon the lawful rights and interests of Chinese citizens or organisations.”

Xinhe: The decree shares a limited degree of similarity with the EU’s Blocking Statute, which also aims to counteract third-country extraterritorial measures. However, it is broader scope, and contains vague language, potentially giving Chinese officials wider discretion to punish companies and individuals, including through criminal liability.

Rui: The regulations also affirm China’s ability to use extraterritorial provisions itself when deemed necessary. This is concerning given that Chinese extraterritorial export controls—which were originally announced in October 2025 and subsequently suspended—are set to come into force in November this year.

Xinhe: To read more about China’s evolving export control rules and regulations, check out the Chamber’s latest publication, Exporting Control: China’s Strategic Toolkit, which was published earlier this month. A link can be found in the episode notes.

(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.

This episode contains segments on:

• China’s March 2026 foreign trade data;
• March price indices;
• Spanish Prime Minister Sanchez’s visit to China;

The Chamber’s latest report Exporting Control: China’s New Strategic Toolkit is available to download on the Chamber’s official website for free.

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 March 2026 Foreign Trade Data

http://www.customs.gov.cn/customs/2026-04/14/article_2026041410445518792.html

http://www.customs.gov.cn/customs/2026-04/14/article_2026041410445544739.html

http://www.customs.gov.cn/customs/2026-04/14/article_2026041410445573103.html

China’s March Price Indices

https://www.stats.gov.cn/sj/zxfb/202604/t20260410_1963264.html

https://www.stats.gov.cn/sj/zxfb/202604/t20260410_1963263.html

Spanish Prime Minister Sanchez visits China

https://www.gov.cn/yaowen/liebiao/202604/content_7065562.htm

Exporting Control: China’s New Strategic Toolkit

https://www.europeanchamber.com.cn/en/publications-archive/1380

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 15th April 2026.

(Music)

RUI: In March, the value of China’s imports from the rest of the world surged by 27.8 per cent year-on-year in value terms, representing the strongest growth in four years. Meanwhile, exports from China grew modestly at 2.5 per cent year-on-year.

XINHE: An increase in commodity and high-tech product imports drove the overall increase seen in March. Imports of rare earths rose by 167 per cent, fertiliser by 59.6 per cent and copper ore by 45.6 per cent year-on-year in value terms. Among advanced products, imports of automated data processing equipment saw the strongest growth, rising 49.5 per cent year-on-year. Integrated circuits and mechanical and electrical equipment imports also saw increases at 45 per cent and 24.9 per cent year-on-year respectively.

On a per-country and territory basis, imports routed through Hong Kong saw the strongest growth, growing 334.6 per cent year-on-year in March. However, despite the overall surge in imports, many markets saw a continued expansion of their trade deficits with China, with Chinese exports outpacing imports. In March, China’s imports from the European Union rose 10.5 per cent, while exports to the EU increased 21.1 per cent year-on-year in value terms.

Chinese exports to the rest of the world saw more modest growth across the board. Toy exports fell by 14.8 per cent, steel by 10.8 per cent and rare earths by nine per cent year-on-year in value terms. Most other product categories saw stagnation or modest increases. Outliers were integrated circuits and automobile exports which increased 77.5 per cent and 58.5 per cent year-on-year.

(Music)

RUI: For the first time in three years, China’s Producer Price Index—or PPI—rose by 0.5 per cent year-on-year ending its deflationary streak.

XINHE: This was mainly driven by a rise in commodity prices with the PPI for the means of production—which includes many industrial inputs—increasing by one per cent year-on-year. Inflation was also seen across industries, with prices in the mining and raw materials industries rising by two per cent and 1.1 per cent year-on-year respectively.

Despite this positive sign for the authorities’ efforts to fight deflation, many advanced industries continued to face factory gate price deflation. The automobile and computer, communication and other electronic equipment manufacturing industries saw factory gate prices drop 2.4 per cent and 0.7 per cent respectively.

The PPI for consumer goods remained in deflationary territory in March, recording an overall decrease of 1.3 per cent year-on-year. Prices for a range of other goods fell, with food prices declining 1.7 per cent, daily necessities 1.4 per cent and clothing prices 1.1 per cent year-on-year.

(Music)

RUI: China’sCPI—or Consumer Price Index—grew by one per cent year-on-year, narrowing slightly from February’s one-year high.  

XINHE: CPI growth in March was driven by increases in the price for consumer goods which rose by 1.5 per cent year-on-year. Food price inflation, which had driven CPI growth in previous months, eased in March, coming in at 0.3 per cent year-on-year. This was mainly due to a fall in meat prices.

Six of the seven major goods categories saw price inflation in March with medical care increasing strongest at 1.9 per cent, followed by clothing and daily necessities at 1.6 per cent and 1.5 per cent year-on-year. Housing prices fell by 0.2 per cent year-on-year in March.

(Music)

RUI: Spanish Prime Minister Pedro Sanchez is visiting China between the 11th and 15th of Apriland met with President Xi Jinping on Tuesday, 14th April.

XINHE: A range of issues were discussed by the two leaders, from climate change to security and defence, to international trade. Within the EU, Sanchez is an advocate for closer ties between Europe and China. Much of his visit was therefore focused on improving economic ties and discussing lingering tensions. Sanchez also emphasised that the current trade imbalance between the two regions is unsustainable. After the meeting on 14th April, China agreed to measures that would narrow Spain’s trade deficit with China.

(Music)

RUI: On 14th April, the European Chamber published Exporting Control: China’s New Strategic Toolkit.

XINHE: The report dives deep into the development of China’s export control regime, which has enabled the country to control the global supply of strategic goods like rare earths. Given that a significant expansion of China’s export control regime is set to enter force in November 2026, the report calls for urgent action by China to prevent supply chain disruptions later in the year.

(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.

This episode contains segments on:

• China’s New Regulation on Industrial and Supply Chain Security
• China’s new guidance for e-commerce development
• EU-China joint space mission

Also, the European Chamber will launch its latest report on China’s export control regime which will be available to download from the Chamber’s website on 14th April.

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 New Regulation on Industrial and Supply Chain Security

https://www.gov.cn/zhengce/content/202604/content_7064837.htm

China’s new guidance for e-commerce development

https://www.reuters.com/world/asia-pacific/china-issues-guidance-e-commerce-including-cross-border-trade-2026-04-06/

EU-China joint space mission

https://www.ft.com/content/a2fd6a17-4e0a-4db8-b0f4-9a1289f220b3

[Hybrid] Report Launch | Exporting Control: China’s New Strategic Toolkit

https://www.europeanchamber.com.cn/en/upcoming-events/29061

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 8th April 2026.

(Music)

RUI: At the 81st executive meeting of the State Council on 31st March, China adopted the Regulations of the State Council on the Security of Industrial and Supply Chains.

XINHE: Through this regulation, the State Council intends to establish a framework to safeguard China’s industrial and supply chains from security threats, while simultaneously enhancing their resilience.

Multiple State Council departments will share responsibility at the national level to achieve several key priorities. Departments are tasked with developing an early warning and emergency response system that will monitor fundamental risks. A list of key, strategically-important sectors will be created that are subject to heightened oversight from the monitoring authorities.

The new regulations also bestow broad power upon authorities to investigate and potentially retaliate against foreign actors whose policies are deemed detrimental to the security of China’s supply chains. The regulation specifically refers to foreign entities that disrupt the normal flow of trade or impose discriminatory measures against Chinese companies.

In its decree announcing the new regulation, the State Council stressed its desire to balance this regulatory development with international cooperation on supply chain security. Nonetheless, these new legal tools will allow the Chinese Government to react more forcefully to foreign pressure. This dovetails with the priorities outlined in China’s 15th Five-Year Plan, which puts an emphasis on strengthening supply chains and the resilience of China’s economy against foreign disruption.

(Music)

RUI: Following a visit by EU lawmakers on 31st March, China issued guidance for its e-commerce sector, aimed at aligning the sector’s development with international concerns around product safety and trade imbalances.

XINHE: During their visit, EU lawmakers, who represented the EU Parliament’s internal market committee, brought up instances of dangerous and non-compliant imports through Chinese e-commerce platforms. Several Chinese e-commerce platforms are currently under investigation for violations of product standards.

The newly released guidance emphasises the need to establish a balance between promotion and regulation of the booming e-commerce sector. It calls for cross-border pilot zones to be established in which new rules and standards would be implemented while promoting overseas expansion.

This move could be a constructive step towards easing some of the concerns raised by EU lawmakers and member states. While investigations into Chinese e-commerce companies are still underway, continued progress in establishing effective regulation can help ease disputes over dangerous imports.

(Music)

RUI: The EU and China will be launching a joint space mission in late April, following almost a decade of collaboration and preparatory work.

XINHE: The mission entails the launch of a satellite called SMILE, that will study the Earth’s magnetic field, which protects the planet from solar radiation. The goal of the project is to better predict geomagnetic storms, which can damage communications systems and satellites.

As a demonstration of the potency of bilateral scientific cooperation, this project is something of an outlier given the fact that it is taking place in the face of intense geopolitical headwinds. The collaboration was launched in 2016 amid improving relations between the EU and China and has since managed to stay on course, despite intermittent periods of spiralling tensions.

(Music)

RUI: Join the European Chamber’s launch event for its latest publication, Exporting Control: China’s New Strategic Toolkit, on 14th April 2026 at 2pm Beijing time.

XINHE: The report focuses on the development of China’s export control regime and future scenarios in which this evolving toolkit may be applied to influence strategic competition. The event will feature a presentation by the Chamber’s President, Jens Eskelund, followed by a panel discussion on the main findings of the report. The report itself will be available for download from the Chamber’s website on 14th April.

RUI: You can find more information by 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.

This episode contains segments on:

• China’s March 2026 Purchasing Manager’s Index (PMI);
• China’s January–February 2026 industrial profits;
• European Parliament delegation visits China; and
• The EU’s new customs rules and customs authority.

Also, the European Chamber will launch a report on China’s export control regime on 14th April.

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 March 2026 Purchasing Manager’s Index

https://www.stats.gov.cn/sj/zxfb/202603/t20260331_1962889.html

China’s Industrial Profits January – February 2026

https://www.stats.gov.cn/sj/zxfb/202603/t20260327_1962868.html

European Parliament Delegation Visits China

https://www.bloomberg.com/news/articles/2026-03-31/china-seeks-better-eu-ties-as-lawmakers-return-after-eight-years

https://www.yahoo.com/news/articles/eu-delegation-urges-china-tighten-162222952.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAAs9DPdm8PC-02Pnmexa9HgkJQUmtfmvmrDNeaII2GEAumiAjiKNRKkosPTOvOFlHgk1ZCyZhiuu1Kdge3ytGG8j5X4Gby1rtKIY6u1SUJOLkZulQ_Zi3UYtSxmubYf1n0bYIEnouvQxxbhgsIFO5rFXZ4n4kSDaUKQ0MuzHbtC2

The EU’s New Customs Rules and Customs Authority

https://www.ft.com/content/9d36fbdc-ecd6-42e4-85a1-3d6256c0c61c?syn-25a6b1a6=1

European Chamber Report Launch on Export Control Regime

https://www.europeanchamber.com.cn/en/upcoming-events/29061

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 1st April 2026.

(Music)

RUI: China’s Manufacturing Purchasing Manager’s Index—or PMI—surged by 1.4 percentage points to 50.4 in March, above the critical threshold which indicates expansion. The non-manufacturing PMI also reached expansion territory, jumping by 0.6 percentage points.

XINHE:  The surge recorded in March is the largest single month increase for the manufacturing PMI in over a year. This expansion was largely driven by strong new order growth, with the respective PMI jumping by 3 percentage points to 51.6. The PMI for new export orders rose by 4.1 percentage points, yet remained in contraction territory at 49.1.

The PMI for factory prices continued its upward trend, surging by 4.8 percentage points to 55.4. This is especially noteworthy since factory gate price deflation has been a longstanding issue for companies in China. Efforts by Chinese authorities to combat this finally seem to be paying off.

Non-manufacturing business activity, which is made up of construction and services, also recovered in March with the respective PMI rising by 0.6 percentage points and settling just above the expansion threshold at 50.1. The construction sector PMI rose by 1.1 percentage points to 49.3, just below the threshold. The services sector returned to expansion in March with a 0.5 percentage point rise to 50.2.

(Music)

RUI: China’s industrial enterprises recorded strong results in the January to February period, with total profits rising 15.2 per cent year-on-year, reaching 1,025 billion yuan.

XINHE: This overall rise in profits was led by the manufacturing sector, which saw its profits increase by 18.9 percent year-on-year in the January to February period. The mining sector, which suffered from a prolonged slump in commodity prices, also experienced a notable recovery, with profits rising by 9.9 percent year-on-year.

At the industry level, the computer, communication and other electronic equipment manufacturing industry saw a twofold profit increase followed by the non-ferrous metal smelting and rolling processing industry which saw a 1.5-fold increase. An outlier in this trend is the automotive industry, which experienced a 30.2 percent year-on-year decline in its profits in the January to February period.

(Music)

RUI: A delegation of lawmakers from the European Parliament embarked on a three-day trip to China on 31st March, marking the first such visit in eight years.

XINHE: The delegation, which represents the EU Parliament’s internal market committee, is travelling to China on the invitation of the legislative affairs commission of the National People’s Congress. They will visit Beijing and Shanghai and meet with the chairperson of the Standing Committee of the National People’s Congress, among others. Both the EU delegation and their Chinese counterparts emphasised the desire for increased cooperation, especially regarding safeguarding the international trading regime.

Before the visit, the head of the EU Parliament’s delegation called upon Chinese companies to comply with EU product safety standards, referring to an ongoing EU investigation into large volumes of small parcels shipped through Chinese online marketplaces.

On 1st April 2026, European Chamber representatives led by Secretary General Adam Dunnett met with the EU Parliament delegation. Dunnett provided an overview of the key concerns and recommendations of European industry in China as reflected in the Chamber’s last Position Paper. The discussion and Q&A session focused on a variety of topics, from the structural issues impacting the Chinese economy and the expectations on the Fifteenth Five-Year Plan, to Intellectual Property Rights (IPR) protection, E-Commerce and consumer trends in China. Both sides also discussed the development trajectory of Artificial Intelligence (AI) technologies, strategies and policies in China, with Chamber representatives advocating for further EU-China exchanges with an aim to develop harmonised AI governance and safety frameworks.

(Music)

RUI: On 25th March, the European Parliament and Council of the EU agreed on a reform of the European Customs Union, which will include provisions to address challenges brought on by the growth in e-commerce.

XINHE: The new agreement will establish an EU Customs Authority which will, among other duties, manage an integrated Customs Data Hub for customs operations in the EU. The customs exemption on parcels below 150 euros—a rule that was previously used by e-commerce companies to ship relatively low-value goods without incurring duties—was also removed. These new rules will allow member countries to impose fines on e-commerce companies, which import non-compliant goods into the European Union.

This comes on the heels of multiple investigations into Chinese and other foreign e-commerce companies, which were alleged to have imported non-compliant and dangerous goods into the EU.

(Music)

RUI: Join the European Chamber’s launch event for its latest publication, Exporting Control: China’s New Strategic Toolkit, on 14th April 2026.

XINHE: The report focuses on the development of China’s export control regime and future scenarios in which this evolving toolkit may be applied to influence strategic competition. The event will feature a presentation by the Chamber’s President, Jens Eskelund, followed by a panel discussion on the main findings of the report.

RUI: You can find more information by 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.

This episode contains segments on:

• China’s January-February foreign direct investment;
• China’s January-February industrial production;
• EU Trade Commissioner’s Remarks ahead of WTO Summit in Cameroon; and
• China’s revised conduct standards for leaders of state-owned enterprises.

Listeners are also invited to join a breakfast roundtable with Eurasia Group’s Wang Dan in Beijing on 8th April, to hear her insights on China’s economic outlook.

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 Foreign Direct Investment (FDI) Utilisation January – February 2026

https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2026/art_8f9a848b79ef478f8cf75d540be2bf3b.html

China’s Industrial Production January – February 2026

https://www.stats.gov.cn/sj/zxfb/202603/t20260316_1962782.html

EU Trade Commissioner’s Remarks ahead of WTO Summit in Cameroon

https://www.euractiv.com/news/eu-demands-serious-reform-of-the-wto-to-stop-flood-of-chinese-exports/

China’s revised conduct standards for leaders of state-owned enterprises

https://english.news.cn/20260322/d4a0a141981445ed860a66f1940d7736/c.html

https://english.news.cn/20260323/727dfe1b8f8549d18e332d71ff33fd4c/c.html

https://www.scmp.com/news/china/politics/article/3347347/chongqing-mayor-under-investigation-chinas-anti-corruption-crackdown-gathers-pace?module=top_story&pgtype=section

Breakfast Roundtable with Wang Dan, Eurasia Group | China’s Economic Outlook: Consumption, Property and Structural Shifts

https://www.europeanchamber.com.cn/en/upcoming-events/29016/Breakfast_Roundtable_with_Wang_Dan_Eurasia_Group_China_s_Economic_Outlook_Consumption_Property_and_Structural_Shifts

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 25th March 2026.

(Music)

RUI: China received over 161 billion yuan in foreign direct investment, or FDI, between January and February 2026.

XINHE: This represents a drop of 5.7 per cent year-on-year, slightly larger than the 5.6 per cent drop recorded a month prior. FDI into high-tech industries continued to increase with 39.2 per cent of total FDI, or 63.21 billion yuan, between January and February being invested in these sectors. This represents an 8.5 per cent jump compared the same period last year. Similar to last month’s figures, FDI into R&D and design services and computer and office equipment manufacturing were again the strongest subsectors, with respective increases of 171.8 per cent and 84.1 per cent year-on-year. By country, investment from Canada surged in February, increasing by 210 per cent year-on-year.

(Music)

RUI: Production at industrial enterprises above the designated size in China expanded by 6.3 per cent in the January to February period, the highest rate in three months.

XINHE:  The manufacturing industry saw strong growth of 6.6 per cent year-on-year, while the mining industry expanded at 6.1 per cent year-on-year. Production expanded in 35 out of the 41 major industrial subsectors in the January to February period. Particularly strong growth was recorded in computer, communication and other electronic equipment manufacturing, at 14.2 per cent year-on-year, and electrical machinery manufacturing, at 8.9 per cent year-on-year.

The automobile manufacturing sector performed weakly, with overall production dropping 9.9 per cent in the January to February period. Production of new energy vehicles, previously a driver of growth, declined by 13.7 per cent year-on-year. However, this could be a positive sign given that the sector has suffered from unsustainable competition driven by overproduction.

(Music)

RUI: EU Commissioner for Trade and Economic Security Maroš Šefčovič is set to raise European concerns about China’s surging exports and industrial overcapacity at the upcoming World Trade Organization—or WTO—talks in Cameroon this Thursday.

XINHE: At a press conference on Monday, Šefčovič said the WTO requires “serious reform”, noting that significant shifts in the global trade environment have created the need for changes to members’ rights and obligations with the aim of ensuring that issues like overcapacity, unlevel-playing fields, and non-market policies can be addressed adequately.

Šefčovič highlighted the need for new governance models to address longstanding limitations in the WTO’s dispute settlement system and indicated that the EU would look to bring more countries into the Multi-Party Interim Appeal Arbitration Arrangement as a complementary mechanism.

(Music)

RUI: China has issued revised regulations on conduct standards for leaders of state-owned enterprises—or SOEs—to strengthen oversight mechanisms with the aim of preventing corruption.

XINHE: The updated rules, originally introduced in 2009 and recently revised by the Communist Party of China’s Central Committee and State Council, apply to leaders across wholly state-owned, state-controlled, and state-influenced enterprises, including financial firms. The regulations mandate annual reporting, regular Party-led oversight, and the integration of audit and regulatory supervision. Special provisions address anti-risk measures for overseas operations and tighter exit controls for departing leaders.

(Music)

RUI: Join the European Chamber’s breakfast roundtable with Dr Wang Dan, China Director at Eurasia Group and former Chief Economist at Hang Seng Bank China.

XINHE: At this breakfast roundtable, Dr Wang Dan will discuss the structural changes currently reshaping China’s economic trajectory, exploring the complex interplay between weakening domestic demand and persistent industrial strength. The session will examine how these dynamics differ from previous growth cycles driven by investment and the property sector, and what they mean for foreign businesses operating in an increasingly differentiated market environment.

(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.

This episode contains segments on:

• China’s 15th Five-year Plan;
• China’s January-February retail sales of consumer goods;
• 2026 fiscal policy priorities; and
• EU sanctions two Chinese tech companies.

Listeners are invited to attend a breakfast roundtable with Andrew Polk on 25th March in Beijing, to hear his insights into the ‘Two Sessions’ and the 15th Five-year Plan.

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 15th Five-Year Plan

https://www.gov.cn/yaowen/liebiao/202603/content_7062633.htm

China January-February 2026 Retail Consumer Goods Sales

https://www.stats.gov.cn/sj/zxfbhjd/202603/t20260316_1962786.html

2025 Ministry of Finance Execution Report

https://www.mof.gov.cn/zhengwuxinxi/caizhengxinwen/202603/t20260317_3985436.htm

EU sanctions two Chinese tech companies

https://www.consilium.europa.eu/en/press/press-releases/2026/03/16/cyber-attacks-against-the-eu-and-its-member-states-council-sanctions-three-entities-and-two-individuals/

Breakfast Roundtable with Andrew Polk

https://www.europeanchamber.com.cn/en/upcoming-events/29000/Breakfast_Roundtable_with_Andrew_Polk_Policy_Signals_from_the_Two_Sessions_and_the_15th_Five_Year_Plan

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 18th March 2026.

(Music)

RUI: China’s 15th Five-Year Plan was released on 13th March, after being approved by the 2026 National People’s Congress on 12th March.

XINHE: The 15th Five-year Plan displays a high degree of policy continuity with the previous five-year plan. Frontier technologies remain a focus area with the development and use of artificial intelligence highlighted throughout. Like the 14th Five-Year Plan, the 15th Five-Year Plan includes a call for foreign-invested enterprises to receive national treatment. The plan also calls upon lawmakers to rectify regulations that fail to comply with the Foreign Investment Law, a positive sign that the Chinese Government will step up efforts to ensure foreign companies can compete on a level playing field.

The plan’s increased focus on self-reliance is concerning for European businesses given the challenges foreign companies in sectors targeted by past self-reliance initiatives have faced. The introduction of New Quality Productive Forces in 2023—the apparent successor to the Made in China 2025 industrial policy initiative—marked a significant expansion of China’s ambitions to develop indigenous technologies across a wider range of sectors. The European Chamber will continue advocating to ensure that China’s self-reliance drive does not undermine the promise of national treatment for foreign-invested enterprises.

(Music)

RUI: Retail sales of consumer goods grew 2.8 per cent year-on-year between January and February 2026.

XINHE: This represents an increase from the 0.9 per cent growth rate registered in December 2025. Overall growth continues to be dragged down by automobile sales which dropped 7.3 per cent year-on-year in the January to February period. Excluding automobiles, retail sales growth would have come in at 3.7 per cent. Sales of petroleum and its products, and building and decoration materials also struggled in January and February, decreasing by 9.7 per cent and 2.2 per cent year-on-year respectively.

Online sales of consumer goods increased by 10.3 per cent year-on-year in the January to February period, making up 24.2 per cent of all retail sales of consumer goods in China.

(Music)

RUI: The Ministry of Finance released its 2025 execution report on 17th March and laid out key priorities coming out of the 2026 ‘Two Sessions’ and the 15th Five-Year Plan.

XINHE: The 2026 fiscal outlook centres on five key areas: boosting domestic demand, cultivating new growth drivers, advancing technological self-reliance, safeguarding people’s livelihoods, and promoting China’s green transformation. Ultra-long-term special treasury bonds will continue to be allocated for major infrastructure projects, while a comprehensive package of fiscal and financial policies will be released, aimed at stimulating private investment and consumer spending. The ministry will also refine its negative list management for special-purpose bonds and expand a pilot programme allowing some local governments to self-review and self-issue such bonds. The pilot, which began in late 2024, is currently active in 10 provinces and regions including Beijing. On the social side, it is intended that fiscal investment in education, healthcare and pensions will be increased, and a childcare subsidy system introduced in 2025 will be fully implemented.

(Music)

RUI: On 16th March, the Council of the European Union imposed sanctions on two Chinese companies responsible for cyber-attacks carried out against EU Member States.

XINHE: The two companies now face an asset freeze and EU citizens and companies are forbidden from engaging in business and providing funds to the two companies. The two founders of one of the companies were also individually sanctioned and put on a no-travel list. One Iranian company was also subject to the same sanctions.

(Music)

RUI: Join the European Chamber’s breakfast roundtable with Andrew Polk, Co-Founder and head of economic research at Trivium China, on 25th March in Beijing.

XINHE: At this breakfast roundtable, Andrew Polk will discuss conclusions from China’s annual ‘Two Sessions’ and the recently released 15th Five-year Plan, both of which provide insights into Beijing’s policy priorities and long-term development trajectory.

(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.

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.

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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.

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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.