China ShortCuts

This episode contains segments on:

• China’s October Purchasing Managers’ Index (PMI);
• EU imposed definitive anti-dumping duties on PET spunbond from China;
• EU announced a safeguard investigation into imports of certain new hybrid passenger vehicles from the rest of the world;
• Public consultation on five draft domestic product standards for government procurement
• The European Chamber’s EU Tour

Contact:

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

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

Read more:

China’s October Purchasing Manager’s Indices (PMIs) https://www.stats.gov.cn/sj/zxfb/202610/t20261031_1965718.html

https://www.stats.gov.cn/sj/sjjd/202610/t20261031_1965719.html

The European Commission imposed definitive anti-dumping duties on polyethylene terephthalate (PET) Spunbond from China

https://policy.trade.ec.europa.eu/news/commission-acts-against-imports-pet-spunbond-china-2026-10-30_en

The European Commission announced a safeguard investigation into imports of certain new hybrid passenger vehicles from the rest of the world

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:C_202605780

https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Trade_and_production_of_hybrid_and_electric_cars

The Ministry of Industry and Information Technology and Ministry of Finance’s joint announcement on calling for comments on the proposed requirements on the proportion of domestic content for certain products in terms of government procurement

https://www.miit.gov.cn/jgsj/zbes/gzdt/art/2026/art_a20ae1541035456e8afa7c185927df2d.html?mc_cid=04e8f67fe5&mc_eid=532bae9777

European Chamber 2026 EU Tour

https://mp.weixin.qq.com/s/nzBdWQMxUPtuHLQS9RKTkg

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 4th November 2026.  

(MUSIC)

RUI: Data released by the National Bureau of Statistics on 31st October showed that manufacturing activity in China fell sharply in October amid weakened demand.

XINHE: The official manufacturing purchasing managers’ index, or PMI, dropped to 49.3 points – well below the 50-point mark separating growth from contraction. This was the lowest reading since July and marked the third contraction in China’s manufacturing sector activity in four months. Out of the five key subindices of the PMI, four were in contraction territory, with production and new orders registering the sharpest falls, dragging overall activity down. Huo Lihui, a chief statistician with the statistics bureau, attributed the slowdown to “both the early release of some demand ahead of the National Day holiday and an increasingly complex international environment”.

RUI: The official non-manufacturing PMI, which reflects construction and services activity, stood at 49.7 points in October, down from 50.2 points in September, back to contraction territory after a single month of expansion. Activity in both services and construction decreased compared to September, registering 50 points and 48 points respectively. At the same time, services activity grew at a fast pace in areas related to travel and leisure, boosted by consumption during the national holiday at the beginning of the month, with readings for railway transportation, accommodation, and culture, sports and entertainment, all in expansion territory in October.

(MUSIC)

RUI: On 30th October, the European Commission imposed anti-dumping duties on imports into the EU from China of PET Spunbond – a type of polyester fabric typically used for waterproofing.

XINHE: In May this year, the European Commission had launched an anti-dumping probe into the Chinese imports of this product and imposed provisional anti-dumping duties ranging from 45.6 per cent to 50 per cent. In October, the Commission said that the investigation found that the said imports from China were entering the EU at dumped prices, causing injury to EU industry. The definitive anti-dumping duties put in place as a result range from 39.8 per cent to 48.1 per cent, and will remain in place for five years.

RUI: The Commission specified that the EU market for this product is worth 200 million euros, with domestic capacity present in Germany, Italy and France.

(MUSIC)

RUI: On 30th October, the European Commission announced a safeguard investigation into imports of certain new hybrid passenger vehicles from the rest of the world.

XINHE: According to the official readout, total imports of the product concerned surged 49 per cent from 2023 to mid-2026 to 1.4 million units. The Commission said that the volume of these imports has had a negative impact on the market share of European producers and is threatening to cause significant impairment to European industry.

RUI: According to Eurostat, main partners for imports of hybrid and electric cars are China, Japan, South Korea and the United Kingdom, which together accounted for 73 per cent of total EU imports in 2025. China alone accounted for 26 per cent of the total. However, prior to this, on 9th October, the EU and China had reached an agreement under the EU-China Trade and Investment Consultation mechanism to halve Chinese exports of hybrid and plug-in hybrid vehicles to the EU.

(MUSIC)

RUI: On 30th October, the Ministry of Industry and Information Technology (MIIT) and Ministry of Finance published an announcement, calling for comments on the proposed requirements on the proportion of domestic content for certain products in government procurement.

The announcement includes products of five categories: three types of high-precision process tools, as well as certain types of industrial robots and helicopters.

XINHE: According to the proposal, the cost of components produced in China for the product must account for a certain percentage, ranging from 50 per cent to 70 per cent, depending on the category. The requirement would be implemented with a grace period of five years. The Chamber is in the process of collecting feedback from its member companies to submit to MOFCOM, and will be monitoring related developments closely.

(MUSIC)

RUI: The European Chamber’s EU tour 2026 concluded on 30th October, with a delegation of 21 led by the president and composed of vice presidents, board members, overseas representatives, senior working group representatives and secretariat.

XINHE: During the week-long tour, 62 meetings and events were held, including meetings with: Teresa Ribera, Executive Vice President for a Clean, Just and Competitive Transition; Valdis Dombrovskis, European Commissioner for Economy and Productivity, and European Commissioner for Implementation and Simplification; and other officials from the cabinets of senior representatives and commissioners, Economic and Foreign Policy Advisors to European Council, and Chinese Ambassador to the EU.

RUI: Throughout these engagements, delegates shared the Chamber’s key messaging and presented the recently published European Business in China Position Paper 2026/2027.

(MUSIC)

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

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

This episode contains segments on:

• China’s January–September FDI utilisation;
• China’s January–September industrial profits;
• China’s new export control measures;
• The European Parliament’s Committee on International Trade’s visit to China;
• European Chamber’s EU Tour 2026

Contact:

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

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

Read more:

China January–September FDI utilisation

https://mo.mofcom.gov.cn/tjsj/ndtzsj/art/2026/art_3f6e7d3a814b4e75ac5ec11e8e9af0cd.html

China January–September industrial profits

https://www.stats.gov.cn/sj/zxfb/202610/t20261027_1965697.html

https://www.stats.gov.cn/sj/sjjd/202610/t20261027_1965698.html

China’s new export control measures

https://www.mofcom.gov.cn/zcfb/zc/art/2026/art_b2fa4e60bcd24bdf8c658e476b808785.html

https://www.mofcom.gov.cn/zcfb/zc/art/2026/art_1628d886f39840489513af242f93517b.html

https://www.mofcom.gov.cn/zcfb/zc/art/2026/art_f4ab31f0b7e94c159b357e39f5a12fc9.html

The European Parliament’s Committee on International Trade’s visit to China

https://www.europarl.europa.eu/committees/en/27-29-october-inta-delegation-to-china/product-details/20261021MIS04300

European Chamber’s EU Tour 2026

https://mp.weixin.qq.com/s/3SIuXGQ-tg5fGfXW8bY6IQ

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 28th October 2026.  

(MUSIC)

RUI: According to data released by China’s Ministry of Commerce on 23rd October, the country’s actual use of foreign direct investment—or FDI—declined overall in the first three quarters of 2026, despite an uptick recorded in September.

XINHE: China’s FDI utilisation amounted to 549 billion yuan in the January–September period.  This means a drop of 4.3 per cent compared to the same period last year. The data for the month of September showed a 2.5 per cent increase year-on-year, but this alone was not enough to offset the downward trend and it remains to be seen if it constitutes an inflection point. In the first nine months of the year, FDI channelled into China’s high-tech industry continued to increase, accounting for more than 40 per cent of the total FDI utilisation.

(MUSIC)

RUI: Data published by the National Bureau of Statistics on 27th October showed that the growth in profits at larger industrial firms in China accelerated in the January to September period this year.

XINHE: In the first three quarters of 2026, industrial profits rose 15.5 per cent year-on-year, to around 6 trillion yuan in total. A key factor pushing the figure up for the first three quarters was a sharp rise in manufacturing profits, which were up 17 per cent year-on-year. Most prominently, industrial profits at larger firms operating in the computer, communications, and other electronic equipment manufacturing industries registered strong growth, with their profits more than doubling from a year ago.

(MUSIC)

RUI: On 19th October, the Ministry of Commerce announced a package of export control measures, with updated measures on certain unmanned aerial vehicles (UAVs), certain dredger-related items and equipment, and new measures on high-end engineering equipment, including tunnel boring machines and walking excavators. The export controls will take effect on 18th November.

In separate announcements released by the Ministry of Commerce on the same day, a ministry spokesperson pointed out that the measures are “aimed at safeguarding China’s national security and interests and fulfilling international obligations such as non-proliferation”.

XINHE: Export controls remain a legitimate mechanism for preventing the proliferation of weapons and the spread of items and technologies that have both civilian and military purposes to users with hostile intent. However, over the past decade there has been an increasing number of cases of them being repurposed as strategic trade measures.

To ensure that export controls serve their primary purpose, they should be designed and applied in a highly targeted manner. The Chamber hopes that China’s Ministry of Commerce, along with other related ministries and departments, will provide clear and transparent guidance on the relevant measures and their implementation.

(MUSIC)

RUI: From 27th to 29th October, a 12-member delegation from the European Parliament’s Committee on International Trade (INTA) is visiting China for talks with Chinese counterparts and government officials. The delegation is scheduled to hold meetings in Beijing, Hangzhou and Shanghai.

XINHE: According to the official press release, during the visit, the delegation will engage in direct discussions with Chinese counterparts and government officials on “fair competition, better market access for European companies, industrial subsidies, secure supply chains, and critical raw materials”, with the aim to “assess China’s trade policies firsthand, raise EU concerns, and explore opportunities for cooperation”.

RUI: On 27th October, the delegation met with representatives of the European Chamber. The two sides discussed issues related to the EU-China relationship, including market access barriers and some of the structural imbalances in China that are impacting European companies.

(MUSIC)

RUI: A European Chamber delegation began its 2026 EU tour to Brussels on 26th October, to present the newly released European Business in China Position Paper 2026/2027 and share first-hand industry insights from the Chinese market with European officials, the Chinese Ambassador to the EU, leading think tanks and industry associations.

XINHE: The delegation is made up of Chamber President Jens Eskelund, vice presidents, board members, overseas representatives and senior working group representatives. On 26th October, the delegation met with Valdis Dombrovskis, European commissioner for economy and productivity and commissioner for implementation and simplification, in addition to other European officials.

RUI: The delegation also met with representatives of the European Automobile Manufacturers Association, COCIR and MedTech Europe, the European Policy Centre,  Bruegel and the EU Institute for Security Studies.

(MUSIC)

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

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

This episode contains segments on:

• China’s third quarter GDP;
• China’s September macroeconomic data;
• China’s January–September 2026 urban fixed asset investment; and the
• Draft revision of the Catalogue of Technologies Prohibited and Restricted from Export.

Listeners are also invited to attend a breakfast roundtable on 30th October with Joerg Wuttke, partner at DGA Albright Stonebridge Group, on EU-China dynamics after the second high-level EU-China trade talks.

Contact:

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

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

Read more:

China Q3 GDP growth

https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965618.html

China’s September macroeconomic data

https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965617.html

https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965614.html

https://www.stats.gov.cn/sj/sjjd/202610/t20261019_1965653.html

China’s January-September 2026 urban fixed asset investment

https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965615.html

https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965616.html

A joint release by China’s Ministry of Commerce (MOFCOM) and the Ministry of Science and Technology (MOST) on seeking public comments on draft adjustments to its Catalogue of Technologies Prohibited and Restricted from Export

https://www.mofcom.gov.cn/zcfb/dwmygl/art/2026/art_61446ab4beee4f63973d4d0ab3097648.html

https://www.mofcom.gov.cn/zcjd/dwmy/art/2026/art_c8712c94f11f49de96c190f876777e44.html

Breakfast roundtable with Joerg Wuttke: EU-China dynamics after the second high-level EU-China trade talks

https://mp.weixin.qq.com/s/TukRXqNiAQIwOxBXF09KOA

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 21st October 2026.  

(MUSIC)

RUI: According to the National Bureau of Statistics, in the third quarter of 2026, the rate of China’s economic growth recovered from a three-year low registered in the previous quarter.

XINHE: The country’s gross domestic product, or GDP, increased 4.5 per cent year-on-year in the July-September period, up from 4.3 per cent in the previous quarter. This means that the Chinese economy is currently on track to achieve the 2026 GDP growth target of 4.5 to 5 per cent set out at the Two Sessions in March.

At the same time, the GDP growth figure alone provides limited insight into how China’s economy is performing. Hard GDP targets are no longer an effective way to measure China’s economic development, as the country is in the process of transitioning to a growth model predicated on quality rather than quantity. Instead of referring just to the figures, the focus should be on the composition of the country’s GDP, which is vital for sustainable and quality growth. In this regard, the European Chamber is advocating for a rebalancing of supply and demand.

(MUSIC)

RUI: Additional data released by China’s National Bureau of Statistics on 19th October showed that while both industrial production and retail sales growth accelerated in September, the increase in retail sales is still lagging behind that of industrial output, pointing to a continued imbalance between supply and demand.  

XINHE: The total value of production at larger industrial firms rose 5.5 per cent year-on-year in September – the fastest pace recorded in six months. Out of the three industries of mining, manufacturing and utilities, the rate of growth was the highest in manufacturing at six per cent. 31 out of 41 industrial sectors surveyed registered year-on-year increases in production output in September, with the computer, communications and other electronic equipment manufacturing sector recording the fastest rate of growth – surpassing 16 per cent. 

RUI: Meanwhile, the total value of retail sales of consumer goods in China expanded 1.1 per cent year-on-year in September, up from 0.4 per cent recorded the previous month. A key factor holding back retail sales in September was a continued weakening of car sales, which declined over 21 per cent year-on-year. 

In the first three quarters of 2026, retail sales grew 1.1 per cent year-on-year. This compares with a 5.3 per cent growth rate in industrial production for the same period. Notably, a breakdown of the data showed sharp dips in the sales of several goods categories that have been targeted by consumer trade-in schemes in previous years, including household appliances and audio-video equipment, furniture and cars.  The decrease in the sales of these products underscores the limited, long-term impact that trade-in measures have on boosting consumption, as they front-load purchases of higher-cost, durable goods that have infrequent purchasing cycles. 

(MUSIC)

RUI: China’s urban fixed asset investment continued to contract in the first nine months of 2026, with the property sector remaining a major drag.

XINHE: According to China’s National Bureau of Statistics, the latest data released on 19th October showed that fixed-asset investment fell 7.2 per cent year-on-year in the January to September period. Investment into real estate development plunged further, down more than 20 per cent from a year ago. Both infrastructure and manufacturing investments also fell, by 4.2 per cent and 2.1 per cent respectively.

(MUSIC)

RUI: On 16th October, China’s Ministry of Commerce and Ministry of Science and Technology issued a public call for comments on draft adjustments to its Catalogue of Technologies Prohibited and Restricted from Export, which proposes adding a total of 40 technologies in artificial intelligence, biomedicine and photovoltaic solar systems to the list.

XINHE: While the comments are not due until 15th November, from the date of publication until the date of formal revision and implementation, technology export operators are required to complete pre-export registration before exporting the newly added technologies. According to the press briefing issued the same day, the ministry said that the export restrictions aim to “guard against the risks of loss of control over, and  improper proliferation of, relevant technologies, while ensuring normal international exchanges and cooperation in science and technology”. The ministry also highlighted that the proposed measures are highly specific, which would limit their scope and facilitate implementation and future updates of the catalogue.

(MUSIC)

RUI: Amid today’s increasingly complex global geopolitical and economic environment, different areas of the EU‑China relationship are evolving in different ways: while pockets of cooperation still exist there are also structural divergences that increase challenges.

Despite the more difficult circumstances, the recently concluded 2nd round of meetings of the EU‑China Trade and Investment Consultation Mechanism resulted in the issuance of a joint statement that outlines key steps towards stabilising bilateral trade ties. Meanwhile, at the European Council meeting in mid-October, EU leaders agreed on the importance of maintaining dialogue with China and using existing instruments and developing new ones to address further structural imbalances in the relationship.

XINHE: Join us in Beijing on 30th October, to hear former European Chamber President Joerg Wuttke, now partner at DGA Albright Stonebridge Group, who will share his insights on Europe’s internal debates on China. Based in Washington, he will also bring his take on US‑China high-level exchanges and how evolving transatlantic dynamics are also shaping EU‑China relations and impacting European businesses.

(MUSIC)

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

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

This episode contains segments on:

• China’s September 2026 official and RatingDog China Purchasing Managers’ Index (PMI);
• China’s September price indices;
• The second round of meetings of the EU-China Trade and Investment Consultation Mechanism; and
• China to cut export tax rebate for new-energy vehicles in 2027.

Contact:

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

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

Read more:

China’s Official Manufacturing and Non-manufacturing PMIs, September

https://www.stats.gov.cn/sj/zxfb/202609/t20260930_1965449.html

RatingDog China General Manufacturing and Services PMIs, September

https://www.pmi.spglobal.com/Public/Home/PressRelease/9825e1ee0a2b4354b73df0378a9bba16

https://www.pmi.spglobal.com/Public/Home/PressRelease/55bacce7c2164d2fb2b750c0aff7037f

China’s September Price Indices (CPI, PPI) 

https://www.stats.gov.cn/sj/zxfb/202610/t20261014_1965476.html

https://www.stats.gov.cn/sj/zxfb/202610/t20261014_1965477.html

https://www.stats.gov.cn/sj/sjjd/202610/t20261014_1965475.html

The second round of meetings of the EU-China Trade and Investment Consultation Mechanism

https://ec.europa.eu/commission/presscorner/detail/en/statement_26_2122

https://www.mofcom.gov.cn/xwfb/bldhd/art/2026/art_870aab913b204c278dc2c42b51174cb1.html

China to cut export tax rebate for new-energy vehicles in 2027

https://szs.mof.gov.cn/zhengcefabu/202610/t20261012_4002592.htm

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 14th October 2026.  

(MUSIC)

RUI: China’s manufacturing and service sector improved in September, with both China’s official and private Purchasing Managers’ Indexes—or PMIs—for manufacturing and non-manufacturing returning to expansion territory.

XINHE: Data released by the National Bureau of Statistics on 30th September showed that both the Official Manufacturing PMI and the Non-manufacturing PMI came in just above the 50-point mark separating growth from contraction. In manufacturing, supply growth outpaced demand growth, with the expansion in new orders slowing slightly from the previous month.  As for the official non-manufacturing index, which encompasses construction and services activity, the subindex for new orders remained well below the 50-point benchmark, indicating sustained weak demand.

The RatingDog China PMIs—which are based on private surveys conducted by S&P Global—showed more pronounced improvement for both the manufacturing and service sectors. The key reason identified for the improvements was an uptick in demand. This discrepancy with the official data can be largely attributed to the different scope of the surveys.

(MUSIC)

RUI: According to data published by National Bureau of Statistics on 14th October, both producer and consumer prices increased in September compared to a year ago.

XINHE: The producer price index showed a five per cent year-on-year increase from 3.8 per cent in August, marking the fastest rate of growth since June 2022. This can be attributed mainly to price increases in fossil fuel-related industries, including coal, natural gas and petroleum extraction and processing, many of which registered year-on-year price increases of more than 20 per cent.

RUI: Meanwhile, consumer price inflation remained moderate, with China’s consumer price index—or CPI—expanding 0.9 per cent year-on-year in September. High fuel prices heavily contributed to CPI growth, rising almost 15 per cent from a year ago.

(MUSIC)

RUI: From 8th to 9th October, a delegation of European officials led by European Commissioner for Trade and Economic Security Maroš Šefčovič travelled to Beijing for a second series of meetings held under the EU-China Trade and Investment Consultation (TIC) mechanism.

Commissioner Šefčovič met with Chinese Minister of Commerce Wang Wentao and Vice Premier He Lifeng as part of the visit. Prior to his official meetings, Commissioner Šefčovič had met with members of the European Chamber’s Advisory Council.

On 9th October, the EU and China issued a joint statement with a list of 16 ‘deliverables and understandings’ organised under the four pillars of trade and investment balancing, export controls, IPR and WTO, that were agreed upon during the first meeting under the TIC mechanism in June 2026.

XINHE: The European Chamber appreciates the release of the joint statement, which touches upon several important issue areas for European businesses in China. Although the current lack of detail in the document makes it difficult to assess how far-reaching the impact of this round of talks may be, officials did reach an agreement on a number of issues, including a pledge to halve Chinese exports of hybrid and plug-in hybrid vehicles to the EU. This could help mitigate some concerns regarding the impact that surging Chinese imports are having on the European single market.

European businesses in China are also encouraged that the two sides have set clear deadlines to track progress on their commitments, in keeping with the understanding that discussions need to be urgently followed by tangible action.

(MUSIC)

RUI: According to a joint statement released by the Ministry of Finance and the State Taxation Administration on 13th October, the value-added tax export rebate for new-energy vehicles will be cut to nine per cent from 13 per cent starting from 1st April 2027. Export consumption tax policies for products subject to the tax will remain unchanged, with existing tax refund or exemption arrangements continuing to apply.

XINHE: This announcement immediately followed the second round of meetings under the EU-China TIC mechanism.

(MUSIC)

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

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

This episode contains segments on:

• China’s August 2026 macroeconomic data
• China’s January to July 2026 foreign trade in services data
• 2026 China International Fair for Trade in Services
• European Commission launches first review of the International Procurement Instrument

Listeners are also invited to attend the official launch of the European Chamber’s European Business in China Position Paper 2026/2027 online on 22nd September.

Contact:

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

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

Read more:

China’s August 2026 macroeconomic data

https://www.stats.gov.cn/sj/zxfb/202609/t20260915_1965308.html

https://www.stats.gov.cn/sj/zxfb/202609/t20260915_1965311.html

https://www.stats.gov.cn/sj/zxfb/202609/t20260915_1965307.html

China’s January to July 2026 Foreign Trade in Services Data

https://www.mofcom.gov.cn/xwfb/sjfzrfb/art/2026/art_5c319d06cbc3478688b14ffc3444ab25.html

2026 China International Fair for Trade in Services (CIFTIS)

https://www.baidu.com/link?url=zCZaXyVPG2w0wmBPXwi0El909ccT_3ytA5S1wZJ4kUTP1rFLRTGxMff8Gs5S0yFUPqiG8Bg2l3lwapRrIBRFo2lwRga2QyX430tIkLRqOjCKS-8b6L03J7byl_IGX0oW&wd=&eqid=b9e317eb001a3855000000066aa8a224

European Commission launches first review of the International Procurement Instrument

https://policy.trade.ec.europa.eu/news/commission-launches-consultation-first-review-international-procurement-instrument-2026-09-10_en

https://policy.trade.ec.europa.eu/consultations/public-consultation-first-review-functioning-international-procurement-instrument_en

European Chamber event: European Business in China Position Paper 2026/2027 launch

https://mp.weixin.qq.com/s/uyLlb2Tqub9ClQ7iyD2luw

Transcript:

RUI: Hello and welcome to China ShortCuts,

MARIANN: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 16th September 2026.  

(MUSIC)

RUI: According to data release by the National Bureau of Statistics on 15th September, industrial production growth in China accelerated in August.

MARIANN: Industrial production among larger firms in China—those with an annual income upwards of 20 million RMB per annum—grew by 5.2 per cent year-on-year in August, up from 4.5 per cent in July. Manufacturing production increased by 6.1 per cent; while the output of lithium-ion batteries, industrial robots and 3D printing equipment rose sharply by 57.2 per cent, 34.6 per cent and 29.9 per cent year-on-year respectively over the same time frame.

RUI: As a result, industrial production among larger industrial firms during the January-August period of 2026, increased by 5.3 per cent compared to 2025’s levels.

MARIANN: By contrast, retail sales grew by a slower 1.1 per cent year-on-year overall during the first eight months of the year, having increased by 0.4 per cent in August 2026 relative to August 2025’s levels, when 3.98 trillion Chinese Yuan worth of goods were sold. A continued decline in sales of automotive vehicles, which fell by 18.5 per cent year-on-year in August, contributed to this finding.

(MUSIC)

RUI: According to data published by the Ministry of Commerce on 3rd September, the cumulative value of China’s services trade with the rest of the world stood at 4.5 trillion yuan during the first seven months of 2026, down from 4.6 trillion yuan a year prior.

MARIANN: China’s service exports fell to 1.8 trillion yuan, down from 2 trillion during the first seven months of 2025. Imports of services to China rose to 2.7 trillion yuan over the same timeframe, up from 2.6 trillion in January-August 2025. As a result, China recorded a trade in services deficit with the rest of the world of 900 billion yuan during the first seven months of 2026.

(MUSIC)

RUI: The 2026 China International Fair for Trade in Services—or CIFTIS—took place from 9th to 13th September in Beijing, marking the first national-level comprehensive exhibition for trade in services to be held during China’s 15th Five-Year Plan period. This year’s CIFTIS featured dedicated exhibitions on finance; culture and tourism; education; sports; health; engineering consulting and construction; telecommunications; computer and information; transportation; and energy services.

MARIANN: Improving China’s service trade with the rest of the world is currently a key policy objective for the Chinese Government and listed as a goal in country’s 15th Five-year Plan, which calls for further opening of China’s service sector in areas including the telecommunications, internet, education, culture, and healthcare industries, as well as development of the nighttime economy and the ‘silver economy’.

RUI: European companies recognise the huge growth potential of China’s service sector and are eager to contribute their expertise to its development. However, for this to be possible, widespread market access and regulatory barriers will need to be dismantled.

(MUSIC)

RUI: The European Commission launched the first review of its International Procurement Instrument—or IPI—on 4th September, with stakeholders having until 27th November 2026 to provide feedback on the instrument’s scope, functionality and efficiency.

MARIANN: The IPI was previously used on 24th April of 2024, when the European Commission launched an investigation into the procurement of medical devices in China, following concerns that Chinese procurement policies give unfair preference to domestic suppliers.

Following this, in June 2025, the EU’s member states voted to restrict Chinese medical device manufacturers’ access to the EU’s public procurement market under the IPI. Chinese firms will be prohibited from accessing public procurement contracts worth more than euro (EUR) 5 million for a period of five years.

RUI: According to a readout published by the European Commission on 10th September, “experience gained from the first IPI investigation and the first IPI measure on medical devices will be taken into consideration to evaluate how contracting authorities, contracting entities and businesses apply the IPI Regulation and the IPI measure”.

(MUSIC)

RUI: On 22nd September, the European Chamber will publish its European Business in China Position Paper 2026/2027, which comprises 33 individual industry and horizontal position papers that provide constructive recommendations on how to improve the business environment for companies operating in China.

This year’s Executive Position Paper evaluates numerous structural imbalances facing China’s economy, as well as their impact on the country’s trade and investment relations with key trade parters.

MARIANN: Join us on 22nd September for the official launch of the European Business in China Position Paper 2026/2027. The report will also be available to download for free at the Chamber’s website shortly after its publication.

(MUSIC)

RUI : Thanks for listening, and don’t forget to tune in again after the national holiday. We wish you a happy mid-autumn festival and national holiday ahead.

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

This episode contains segments on:

• China’s August 2026 foreign trade in goods data
• China’s August 2026 producer price index and consumer price index
• Interest, dividends and profit distributions received by foreign individuals from FIEs are to be subject to a 20 per cent tax
• Ministry of Commerce media briefing on EU-China trade talks

Listeners are also invited to attend the official launch of the European Chamber’s European Business in China Position Paper 2026/2027 online on 22nd September.

Contact:

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

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

Read more:

China’s August 2026 foreign trade in goods data

http://www.customs.gov.cn/customs/302249/zfxxgk/fdzdgknr/302274/302275/9f806879-2.html

China’s August 2026 producer price index and consumer price index

https://www.stats.gov.cn/sj/zxfb/202609/t20260909_1965262.html

https://www.stats.gov.cn/sj/zxfb/202609/t20260909_1965263.html

https://www.stats.gov.cn/sj/sjjd/202609/t20260909_1965261.html

Ministry of Finance and State Taxation Administration announce interest, dividends and profit distributions received by foreign individuals from FIEs are to be subject to a 20 per cent tax

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5252107/content.html

MOFCOM media briefing on EU-China trade talks

https://www.mofcom.gov.cn/xwfbzt/2026/swbzklxxwfbh2026n9y3r/index.html

European Chamber event: European Business in China Position Paper 2026/2027 launch

https://mp.weixin.qq.com/s/uyLlb2Tqub9ClQ7iyD2luw

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 9th September 2026.  

(MUSIC)

RUI: China exported 401.4 billion US dollars’ worth of goods to the rest of the world in August 2026, a year-on-year increase of 25 per cent, according to data published by China’s General Administration of Customs. The total value of goods that China imported from the rest of the world grew by 28.2 per cent over the same period, to stand at 282.3 billion US dollars.

XINHE: As a result, China recorded a 119 billion US dollar trade in goods surplus with the rest of the world in August, an increase of 5.8 per cent on the 112.5 billion US dollar trade in goods surplus it recorded in July.  The country’s trade in goods surplus with the EU recorded over the same timeframe narrowed to 32 billion US dollars, a decrease of 5.8 per cent compared to July 2026.

RUI: The EU’s large trade deficit with China has become a significant point of contention in Brussels and many EU Member State capitals. While August’s trade data may be viewed as a step in the right direction by some officials in Europe, a more substantive rebalancing of trade flows will likely be viewed as necessary for the EU and China to achieve a more sustainable trading relationship.

(MUSIC)

RUI: According to data published by China’s National Bureau of Statistics on 9th September, China’s producer price index—or PPI—and consumer price index—or CPI—both registered inflation in August.

XINHE: The PPI rose by 3.8 per cent year-on-year, the second highest monthly rate of inflation recorded in 2026. The National Bureau of Statistics attributed this increase to a rise in international commodity prices, as well as increased demand in some sectors as a result of China’s domestic industrial upgrading.

RUI: Meanwhile, the CPI registered 0.8 per cent year-on-year inflation in August. The National Bureau of Statistics attributed this mainly to an increase in energy prices.

(MUSIC)

RUI: According to a joint announcement from China’s Ministry of Finance and State Taxation Administration, starting from 1st September 2026, interest, dividends and profit distributions received by foreign nationals employed by foreign-invested enterprises in China will be subject to an individual income tax rate of 20 per cent. This follows the abolishment of a clause that dates back to 1994, under which interest, dividends and profit distributions were tax exempt.

XINHE: Under the new rules, foreign-invested enterprises that pay interest, dividends and profit distributions to foreign individuals should withhold the tax payable, and file it with authorities by the 15th day of the following month.

If a foreign-invested enterprise fails to do this, the individual receiving the interest, dividends and profit distributions should pay the tax due by 30th June of the following year, or within a specified period as notified by the tax authorities.

(MUSIC)

RUI: From 31st August to 2nd September, Chinese Vice Minister of Commerce Ling Ji held talks with Denis Redonnet, deputy director general of the European Commission’s Directorate-General for Trade and Economic Security (DG TRADE), in Beijing.

XINHE: At a briefing held on 3rd September, Ministry of Commerce spokesperson Huang Ling said that the two sides had engaged in detailed, candid and constructive discussions on issues of mutual concern, which included several rounds of technical consultations. She also stated that trade talks between the two parties cannot be unilaterally driven by “one-sided demands” and should instead “address the concerns of both sides on an equal footing”.

RUI: On 31st August, European Chamber President Jens Eskelund met with Deputy Director General Denis Redonnet as part of the visit, during which President Eskelund provided an overview of the key economic and policy trends impacting European companies in China. Both sides also exchanged views on the current direction of travel of EU-China economic and trade relations.

(MUSIC)

RUI: On 22nd September, the European Chamber will publish its European Business in China Position Paper 2026/2027, which comprises 33 individual industry and horizontal position papers that provide constructive recommendations on how China’s business environment can be optimised for all companies.

XINHE: This year’s Executive Position Paper evaluates numerous structural imbalances facing China’s economy and the corresponding impacts on its key trade parters, and suggests practical steps to address them. Such imbalances include the mismatch between supply and demand growth; disparities between China’s written intellectual property rights laws and on-the-ground enforcement; the gap between China’s decarbonisation potential and companies’ ability to decarbonise their operations in the country; and foreign companies’ level of access to public procurement opportunities relative to Chinese competitors, among others.

RUI: Join us on the 22nd September for the official launch of the European Business in China Position Paper 2026/2027. The report will also be available to download for free at the Chamber’s website shortly after its publication.

(MUSIC)

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

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

This episode contains segments on:

• China’s August 2026 Purchasing Managers’ Indices (PMIs)
• RatingDog China August 2026 General Manufacturing and Services PMIs
• European Commission President von der Leyen’s La Rencontre des Entrepreneurs de France 2026 Speech

Listeners are also invited to join a closed-door roundtable with Professor Liu Qiao of Peking University on rebuilding China’s growth paradigms. The event will take place in Beijing on 10th September.

Contact:

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

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

Read more:

China’s August 2026 Purchasing Managers’ Indices (PMI)

https://www.stats.gov.cn/sj/zxfb/202608/t20260831_1965154.html

https://www.stats.gov.cn/sj/sjjd/202608/t20260831_1965155.html

RatingDog China August 2026 General Manufacturing and Services PMIs

https://www.pmi.spglobal.com/Public/Home/PressRelease/ce551a2735084a878bf38f7e1ad6c907

European Commission President von der Leyen’s La Rencontre des Entrepreneurs de France 2026 Speech

https://ec.europa.eu/commission/presscorner/api/files/document/print/en/speech_26_1765/SPEECH_26_1765_EN.pdf

European Chamber Event: Closed‑door Roundtable with Prof. Liu Qiao on Rebuilding China’s Growth Paradigms

https://mp.weixin.qq.com/s/DIy8VdVjVdCjLMVvSC31NQ

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 2nd September 2026.  

(MUSIC)

RUI: Data released by the National Bureau of Statistics on 31st August shows that manufacturing activity in China declined for a second consecutive month in August.

XINHE: Despite improving by 0.6 points relative to July’s level, the Official Manufacturing Purchasing Managers’ Index—or the Official Manufacturing PMI—stood at 49.8 points, below the 50-point mark separating growth from contraction.

In terms of the individual metrics covered by the index, the Production and New Orders subindices both registered expansion, coming in at 50.4 points and 50.6 points respectively.

The Employment Subindex however recorded contraction—coming in at 48.7 points—indicative of a decline in employment in the manufacturing sector.

RUI: The National Bureau of Statistics’ Non-manufacturing PMI, which comprises of services and construction data, came in at 49.0 points August, registering no change relative to July’s level.

In terms of its subindices, the Services Business Activity Index also remained unchanged month-on-month, standing at 49.3 points. Meanwhile, the Construction Activity Index came in at 46.9 points in August, slightly down from the 47 points recorded in July, with the extreme weather that impacted construction activity partially contributing to this decline.

(MUSIC)

RUI: Findings of a private survey released on 1st September found that operating conditions in China’s manufacturing sector improved for a ninth consecutive month in August 2026.

XINHE: The RatingDog China Manufacturing Purchasing Managers Index—which is based on private surveys conducted by S&P Global via questionnaires sent to purchasing managers at around 650 private and state-owned companies—stood at 51.5 points in August, rising from 50.9 points in July, indicating a further improvement in the manufacturing segment of China’s economy.

RUI: The discrepancy between the official and the RatingDog PMI is partly because more export-orientated companies are included in the RatingDog PMI sample.

(MUSIC)

RUI: On 27th August, President of the European Commission Ursula von der Leyen delivered a keynote speech at the annual conference La Rencontre des Entrepreneurs de France 2026.

XINHE: She noted that the EU is seeking to ‘derisk’ its relationship with China “without breaking ties”, adding that “being a partner does not mean accepting permanent imbalances.” She also emphasised that ongoing dialogue with China “must produce results”, noting that should this not occur, then the EU must be ready to “make full use of [its trade and investment regulatory] instruments”.

In terms of the imbalances the EU is seeking to address, von de Leyen singled out the need to address the EU’s growing trade deficit with China, as well as to reduce Europe’s dependency on Chinese supply chains for critical resources.

XINHE: The EU and China have been in engaged in ongoing trade and investment talks within the framework of the Trade and Investment Consultation mechanism (TIC) over the last two months, under which more than 20 working-level meetings have already taken place according to China’s Ministry of Commerce.

(MUSIC)

RUI: After being approved at the 2026 National People’s Congress, China’s 15th Five-year Plan for National Economic and Social Development (15FYP) was released on 13th March. From a corporate perspective the plan is extremely important, as it serves as a roadmap for how China’s business environment will be shaped over the next five years.

XINHE: Join us in person in Beijing on 10th September, to hear Liu Qiao, Boya Distinguished Professor and former Dean of the Guanghua School of Management of Peking University, analyse what will drive China’s next‑phase of growth under the plan, as well as how foreign‑invested enterprises can best adjust their strategies and market position to capitalise on opportunities that arise during the 15FYP period.

(MUSIC)

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

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

This episode contains segments on:

• China’s January-July 2026 utilised FDI
• China’s January-July 2026 online retail sales
• Chinese Ministry of Justice declares EU probe into JD.com as unlawful
• The EU’s End-of-Life Vehicles Regulation (ELVR) enters into force

Listeners are also invited to attend a breakfast roundtable with Covington & Burling LLP senior counsel and former Assistant United States Trade Representative Timothy P. Stratford on US-China trade relations.

Contact:

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

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

Read more:

China’s January-July 2026 utilised FDI

https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2026/art_d22dcc4d9d19455bbfce84ad52727aa4.html

China’s January-July 2026 online retail sales

https://www.mofcom.gov.cn/xwfb/sjfzrfb/art/2026/art_86cb6daa2fb64a978d4aaf7b13168dd0.html

Chinese Ministry of Justice declares EU probe into JD.com as unlawful

https://en.moj.gov.cn/2026-08/20/c_1206891.htm

The EU’s End-of-Life Vehicles Regulation (ELVR) enters into force

https://environment.ec.europa.eu/news/new-rules-more-circular-european-automotive-sector-2026-08-12_en

Breakfast roundtable with Covington & Burling LLP senior counsel and former Assistant United States Trade Representative Timothy P. Stratford on US-China trade relations

https://www.europeanchamber.com.cn/en/upcoming-events/29606/

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 26th August 2026.

(MUSIC)

RUI: According to data released by the Ministry of Commerce on 21st August, actualised foreign direct investment—or FDI—into China declined during the first seven months of the year. Between January and July 2026, China attracted 438 billion yuan of utilised FDI, 6.2 per cent less than a year prior.

XINHE: Nearly three quarters of this figure flowed into the services sector, with the rest channelled into manufacturing.

FDI into high-tech industries saw strong growth, increasing by 32.7 per cent year-on-year, to stand at 182.3 billion yuan, and accounting for 41.6 per cent of  actualised FDI over the same timeframe.

(MUSIC)

RUI: On 20th August, the Ministry of Commerce—or MOFCOM—issued a press release to announce that China’s e-commerce sector grew by 4.8 per cent year-on-year during the first seven months of 2026. It also noted that the e-commerce sector accounted for more than half of all retail sales of consumer goods and services-related growth generated over the same period.

XINHE: Sales of online travel and life services both performed particularly well, increasing by 24.9 and 16.3 per cent year-on-year respectively, as did online sales of agricultural products which recorded 12.8 per cent year-on-year growth.

(MUSIC)

RUI: On 28th May, the European Commission opened an investigation, under its Foreign Subsidies Regulation, into Chinese company JD.com’s proposed acquisition of German retail company CECONOMY.

XINHE: On 19th August, China’s Ministry of Justice issued an official response, declaring that the EU’s investigation constitutes “unjustified extraterritorial jurisdiction”, and that with immediate effect “no organisation or individual may implement or assist in the enforcement of such improper extraterritorial jurisdiction measures”.  

The investigation marks China’s second use of its Regulations on Countering Improper Extraterritorial Jurisdiction, which were issued in April by the State Council. In May 2026, China’s Ministry of Justice declared an EU probe into Chinese security equipment company Nuctech—also initiated under EU’s FSR—as unlawful.

RUI: Multinational companies operating in China are increasingly at risk of being caught between a rock and a hard place due to conflicts between Chinese laws and regulations and those in third countries/markets, including the EU and its member states.

In addition to the EU’s Foreign Subsidies Regulation, it is not clear if businesses either operating in China or sourcing from the country will be able to comply with other EU regulations, including the Carbon Border Adjustment Mechanism—or CBAM—and the Corporate Sustainability Due Diligence Directive.

(MUSIC)

RUI: On 13th August, the EU’s End-of-Life Vehicles (ELV) Regulation entered into force, revising rules on the design, production, collection and treatment of vehicles at the end of their life.

The regulation aims to strengthen circularity in the automotive sector by improving resource efficiency, increasing the recovery and reuse of valuable materials, and enhancing the environmental performance of vehicles throughout their lifecycle. It also aims to reduce Europe’s dependence on importing virgin raw materials by increasing the rate of recovery of critical raw materials—including steel, aluminium, copper and rare earth elements—from vehicles at the end of their life.

XINHE: The ELV Regulation is the latest of a number of EU regulations that have been introduced with a view to boosting the bloc’s industrial resilience, as well as mitigating its exposure to external supply shocks.

Businesses should expect more similar pieces of legislation to follow, given that improving the EU’s resilience is viewed increasingly as imperative by European policy makers. In this regard, events such as the COVID-19 pandemic, Russia’s invasion of Ukraine, China’s 2025 imposition of new export controls on rare earth elements, and the ongoing conflict in the Middle East have all underscored the fragility of global supply chains.  

(MUSIC)

RUI: The ever-changing US-China relationship has been a key source of uncertainty for European businesses operating in or with China in recent years.

Following a landmark summit held this summer, it was announced in June that both sides had agreed to establish a ‘trade council’, under which they would discuss how they can cooperate economically, with a view to reciprocally reducing tariffs on 30 billion US dollars’ worth of goods. Washington and Peking are also currently in communication regarding a potential high-level bilateral exchange, set to take place later this year, which has AI governance and industrial cooperation on the agenda.

XINHE: Despite this progress, with the November 2026 US mid-terms fast approaching, US-China economic relations could again reach an inflection point, as America’s China policy is placed back under the spotlight of domestic politics.

RUI: Join us in person in Beijing on 11th September to hear Mr. Timothy P. Stratford, Senior Counsel at Covington & Burling LLP and former AmCham China Chairman and Assistant United States Trade Representative, analyse the latest developments in US-China trade and investment relations.

(MUSIC)

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

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

This episode contains segments on:

• China’s July macroeconomic data;
• China’s January-July urban fixed asset investment;
• Chinese Premier chairs State Council plenary meeting; and
• The EU’s Packaging and Packaging Waste Regulation (PPWR) enters into general application

Listeners are also invited to join a series of case-sharing events, at which winners of its 2025 Sustainable Business Awards will share their insights.

Contact:

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

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

Read more:

China’s July macroeconomic data (NBS)

https://www.stats.gov.cn/sj/zxfb/202608/t20260817_1965055.html

https://www.stats.gov.cn/sj/zxfb/202608/t20260817_1965052.html

https://www.stats.gov.cn/english/PressRelease/202608/t20260817_1965057.html

China’s January-July urban fixed asset investment

https://www.stats.gov.cn/sj/zxfb/202608/t20260817_1965054.html

https://www.stats.gov.cn/english/PressRelease/202608/t20260817_1965057.html

https://www.stats.gov.cn/sj/sjjd/202608/t20260817_1965064.html

Chinese Premier Li Qiang chairs State Council plenary meeting

https://english.www.gov.cn/news/202608/17/content_WS6a831608c6d00ca5f9a0ca89.html

The EU’s Packaging and Packaging Waste Regulation (PPWR) enters into general application

https://environment.ec.europa.eu/news/new-eu-rules-packaging-enter-application-2026-08-11_en

https://commission.europa.eu/news-and-media/news/new-packaging-rules-less-waste-and-easier-recycling-2026-08-12_en

The European Chamber’s Sustainable Business Awards Event Series

https://www.europeanchamber.com.cn/en/upcoming-events/29551/_SBA_Series_Event_Sustainable_Governance_Embedding_ESG_into_Business_Strategy

https://www.europeanchamber.com.cn/en/upcoming-events/29552/_SBA_Series_Event_People_Nature_and_Communities_Creating_Lasting_Social_Impact

https://www.europeanchamber.com.cn/en/upcoming-events/29553/_Save_the_Date_SBA_Series_Event_Building_Sustainable_Value_Chains_Circularity_Supply_Chains_and_Responsible_Growth

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 19th August 2026.

(MUSIC)

RUI: Data published by the National Bureau of Statistics—or NBS—on 17th August, shows that industrial production among larger firms in China—those with an annual income upwards of 20 million RMB per annum—grew by 4.5 per cent year-on-year in July, down from 5.3 per cent in June.

XINHE: The manufacturing sector recorded the highest relative growth rate among all sectors surveyed, at 5.5 per cent year-on-year, a fall from 6 per cent in June. The production and supply of electricity, heat, gas and water increased 5 per cent year-on-year, while the value-added of the mining industry fell by 4.2 per cent year-on-year.

(MUSIC)

RUI: The total value of retail sales in China grew by 0.6 per cent year-on-year in July to 3.9 trillion CNY, according to data released by the NBS on 17th August, a slowdown relative to the 1 per cent growth rate recorded a month earlier.

XINHE: A decline in sales of automotive vehicles—which fell by 17 per cent year-on-year in July—as well as in sales of building and decoration materials—which fell by 14.2 per cent year-on-year—contributed to the decrease.

The slowdown can be partly explained by the launch of the consumer trade-in scheme, first introduced in 2024 as a means to stimulate China’s economy. By subsidising purchases of consumer goods, the scheme has encouraged consumers to replace older goods with newer and more advanced options. This effectively frontloaded demand, with the positive impact this has had on sales now having been exhausted for many product categories.

(MUSIC)

RUI: Urban fixed asset investment in China totalled 26.03 trillion yuan between January and July 2026, a contraction of 6.7 per cent year-on-year, according to NBS data released on 17th August.

XINHE: The decline was predominantly driven by a decline in real estate development-related investment, which fell sharply by 19.2 per cent year-on-year. Urban fixed asset investment in infrastructure and manufacturing also fell, albeit at the more modest rate of 3.6 per cent and 1.7 per cent year-on-year respectively.

(MUSIC)

RUI: On 17th August, Chinese Premier Li Qiang chaired a State Council plenary meeting, at which he noted that China’s economy has remained generally stable, with the emergence of new economic growth drivers, as well as improvements to its overall structure. At the same time, Premier Li noted that insufficient domestic demand remains an issue, while the external environment has become more uncertain.

XINHE: Premier Li also noted that, to meet its development goals, China should make full use of existing policies while promptly rolling out practical and effective new policies. Echoing the 15th Five-year Plan, he highlighted the need to boost domestic consumption, while ensuring that overseas demand for Chinese goods remains stable and that the country “maintain[s] balanced trade development”. The Premier also stressed the importance of ensuring that China maintains stable employment, increases its citizens’ income levels and improves its public services.

RUI: This is in line with the Chamber’s recommendations, which has long called for the Chinese government to take action to address underlying structural headwinds facing China’s economy, as well as to achieve a more balanced trading relationship with key trade partners, including the European Union.

(MUSIC)

RUI: On 12th August, the EU’s Packaging and Packaging Waste Regulation—or PPWR—entered into general application.

XINHE: The PPWR introduces new requirements that cover the entire life cycle of packaging, regardless of the material used or its purpose of origin, be it for industrial, retail or household-related purposes. The new requirements include restrictions on per- and polyfluoroalkyl substances (PFAS) above a certain threshold being used in food-contact packaging placed on the EU market, as well as on the use of certain single-use plastics.

RUI: The PPWR applies to exporters from all non-EU countries. If standards in the country of origin are not aligned with the PPWR, then this will likely result in an increase of costs for exporters. The regulation might even result in supply chain disruptions and/or cost increases for certain items that are impacted.

(MUSIC)

RUI: The European Chamber’s Shanghai Chapter will hold a series of case-sharing events, between late August and early September, at which winners of its 2025 Sustainable Business Awards will share their insights. Topics covered will range from how businesses can achieve sustainable governance and drive the creation of more sustainable value chains, to how social impact initiatives can strengthen employee engagement.

XINHE: Join us in person at the Chamber’s Shanghai office to learn from leading companies’ own experiences.

(MUSIC)

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

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

This episode contains segments on:

• China’s June foreign trade in goods data
• China’s July consumer and producer price indices
• Implementation Measures for Minimum Renewable Energy Consumption Ratios and Renewable Electricity Consumption Responsibility Weights
• MOFCOM launches national security probe into imported office equipment featuring foreign software

Contact:

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

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

Read more:

China’s June foreign trade in goods data

http://www.customs.gov.cn/customs/302249/zfxxgk/fdzdgknr/302274/302275/9f806879-1.html

China’s July PPI and CPI

https://www.stats.gov.cn/sj/zxfb/202608/t20260809_1965007.html

https://www.stats.gov.cn/sj/zxfb/202608/t20260809_1965008.html

https://www.stats.gov.cn/sj/sjjd/202608/t20260809_1965009.html

Implementation Measures for Minimum Renewable Energy Consumption Ratios and Renewable Electricity Consumption Responsibility Weights

https://zfxxgk.ndrc.gov.cn/upload/images/20265/202651216563822.pdf

MOFCOM launches national security probe into imported office equipment featuring foreign software

https://www.mofcom.gov.cn/zcfb/zc/art/2026/art_354593b38ed647ba8c332192e1bfe4d4.html

https://www.comnews.cn/m/content/2026-08/05/content_66365.html

Chamber event: EV & Smart Mobility: Scaling Innovation and Bridging EU-China Partnerships

https://www.europeanchamber.com.cn/en/upcoming-events/29557/_Offline_Member_Free_EV_Smart_Mobility_Scaling_Innovation_and_Bridging_EU_China_Partnerships

Transcript:

RUI: Hello and welcome to China ShortCuts,

XINHE: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recorded on 12th August 2026.

(MUSIC)

RUI: China’s exports continued their rapid growth in July 2026, with the total value up almost 24 per cent from a year ago. While the rate of growth slowed somewhat from the previous month, it still represents the second fastest recorded in almost five years.

XINHE: According to data published by China’s General Administration of Customs on 9th August, China exported nearly 398 billion US dollars’ worth of goods to the rest of the world in July. The total value of imports, meanwhile, grew at an even faster pace than exports: up 27.5 per cent over the same timeframe. While not enough to rebalance China’s export dominance, it helped trim the country’s trade surplus, which now stands at 112 billion US dollars.

Exports of high-tech products rose over 50 per cent compared to a year ago, with their total value edging close to 120 billion US dollars. A strong increase was also seen in the export of integrated circuits, or microchips, which more than doubled year-on-year, making up nearly 10 per cent of China’s total exports in July.

RUI: It is concerning that, while the trade imbalance had been brought up during high-level dialogues, China Customs’ data shows that the country’s trade surplus with the EU continued to widen in July to nearly 34 billion US dollars, up 2.7 per cent from June.

The EU’s growing trade deficit with China has become a significant point of contention in Brussels and many EU Member State capitals. During bilateral talks last month, European Commissioner for Trade and Economic Security and Interinstitutional Relations and Transparency Maros Šefčovič warned his counterpart, Chinese Minister of Commerce Wang Wengtao, that the current situation is ‘not sustainable’.

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RUI: The rise in consumer and producer prices in China both eased in July, according to data released on 9th August by the National Bureau of Statistics (NBS).

XINHE: China’s producer price inflation slowed to the lowest rate recorded in three months, at 3.5 per cent. This was predominantly driven by cost-push inflation, rather than rising demand, as rising input costs—including for oil, gas, chemical materials and non-ferrous metals—continued to put pressure on producers’ margins.

RUI: July’s consumer price index registered a 0.5 per cent increase year-on-year, decelerating from June’s 1 per cent growth. According to an official readout from the NBS, the slowdown was primarily driven by slower gasoline price growth, which rose by only 1 per cent, with the growth rate declining by 16 percentage points compared with the previous month.

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RUI: On 22nd June, the National Development and Reform Commission along with three ministries jointly released implementation measures related to renewable energy consumption, which came into effect on 1st August 2026. The measures establish renewable energy usage quotas at both the provincial level and for key energy consuming industries.

XINHE: The Chamber welcomes the publication of the measures, the goals of which are aligned with the interests of its members. The measures represent a step forward when it comes to achieving China’s 30/60 goals. It is also positive that the scope of assessment has been extended to non-electric renewable energy use.

RUI: At the same time, there is still a need for further clarification on which categories of biofuels are within the scope of the measures; specifics on how the State Council will determine what constitute key energy-consuming industries; and the introduction of additional forms of verification or accounting bases for assessing the completion of renewable energy power consumption targets, among others.

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RUI: On 5th August 2026, China’s Ministry of Commerce opened a national security investigation into imported office equipment with printing and copying functions that feature foreign system software. The investigation is to be completed within 12 months from the date of its announcement.

XINHE: This is the first time that national security concerns have been cited as a reason for an investigation into foreign trade matters, as specified in Article 41 of the Foreign Trade Law. However, this is not the first time office equipment has come under scrutiny in China: one of the clearest examples of this is the  ‘3-5-2’ policy introduced in 2019, which specified that the use of foreign hardware and software should be reduced in Chinese government offices by 30 per cent by 2021, by a further 50 per cent by 2023, and the remaining 20 per cent by 2025.

RUI: Scope creep of what constitutes ‘national security’ continues to be a concern for businesses operating in China. Clearly defining ‘national security’ would make the business environment more predictable and would help to prevent national security concerns from restricting legitimate business activities through discretionary interpretation and any overreach in enforcement of related policies.

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RUI: Today, the automotive industry is characterised by ‘involution-style’ competition and vicious price wars that weigh on innovation. European automotive manufacturers are also grappling with fragmented cross-border data regulations and divergent carbon standards in China. Meanwhile, Chinese EV exports face mounting trade barriers. Navigating this dynamic market successfully poses a major challenge for all automotive players.

XINHE: Join us on 25th August in person in Beijing, to hear experts and industry representatives discuss the current state of the EV market in China, the respective institutional frameworks of the EU and China, and issues related to cross-border compliance, as well as the opportunities that are still there for European automotive manufacturers in China.

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

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

RUI: Listen to the full episode on our WeChat account, or your preferred podcast platform.