13th May 2026: April Foreign Trade Data

3rd June 2026: Outbound Investment Regulations

This episode contains segments on: * State Council Regulations on Outbound Investment; * China’s May 2026 Purchasing Managers’ Index (PMI); * RatingDog China General Manufacturing May 2026 PMI; and * European Commission College of Commissioners debate on EU-China relations. Listeners are also invited to join the European Chamber’s Midsummer Business Reception on 12th June in Beijing. Contact: We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn. Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes. Read more: State Council Regulations on Outbound Investment https://www.news.cn/20260601/e39cc163c50c448ea60a1fe3bffde296/c.html [https://www.news.cn/20260601/e39cc163c50c448ea60a1fe3bffde296/c.html] https://www.ndrc.gov.cn/xwdt/xwfb/202606/t20260601_1405611.html [https://www.ndrc.gov.cn/xwdt/xwfb/202606/t20260601_1405611.html] China’s May 2026 PMI https://www.stats.gov.cn/sj/zxfb/202605/t20260531_1963824.html [https://www.stats.gov.cn/sj/zxfb/202605/t20260531_1963824.html] https://www.stats.gov.cn/sj/zxfbhjd/202605/t20260531_1963825.html [https://www.stats.gov.cn/sj/zxfbhjd/202605/t20260531_1963825.html] RatingDog China General Manufacturing May 2026 PMI https://www.pmi.spglobal.com/Public/Home/PressRelease/8537e35754134e47b49b20cb288ead9c [https://www.pmi.spglobal.com/Public/Home/PressRelease/8537e35754134e47b49b20cb288ead9c] European Commission College of Commissioners debate on EU-China relations https://ec.europa.eu/commission/presscorner/detail/en/read_26_1201 [https://ec.europa.eu/commission/presscorner/detail/en/read_26_1201] The European Chamber’s 12th June Midsummer Business Reception https://www.europeanchamber.com.cn/en/upcoming-events/29178 [https://www.europeanchamber.com.cn/en/upcoming-events/29178] Transcript: Francesca: Hello and welcome to China ShortCuts, XINHE: The European Chamber’s weekly catchup on China’s business landscape. Francesca: This episode was recorded on 3rd June 2026. (MUSIC) Francesca: On 1st June, the State Council released the Regulations on Outbound Investment, or State Council Decree 837, which will come into force on 1st July 2026. The regulations provide the State Council with legal means to “take measures to adjust relevant country-specific investment policies, prohibit or restrict the import and export of goods, technology, or international trade in services” in instances when Chinese investors encounter trade-related investment barriers or obstacles when investing overseas. XINHE: Published shortly after the State Council’s Regulations on the Security of Industrial and Supply Chains, or Decree 834;and the State Council’s Regulations on Countering Improper Extraterritorial Jurisdiction by Foreign States, or Decree 835, Decree 837 appears to be an additional piece of legislation that provides China with a legal framework for taking retaliatory measures against actions it perceives as damaging the rights and interests of its companies. As is the case with the two previous decrees, the inclusion of vague language in key provisions contained in the Regulations on Outbound Investment raises the risk that legitimate commercial decisions could be interpreted as violating the legislation. In a worst-case scenario, the decree could be used as a coercive instrument to pressure those subject to its enforcement into complying with political mandates that sit outside the domain of commercial logic. Francesca:To ensure FIEs can comply, the European Chamber strongly recommends the Chinese authorities publish policy interpretation guidelines in a timely manner that specify if and under what circumstances FIEs doing business in/with China are within the scope of the legislation, as well as definitions for key terms contained within. This is particularly important at a time when global tensions are increasing, and there is an opportunity for China to demonstrate to companies that it can provide a transparent and predictable investment environment. (MUSIC) Francesca: Data released by the National Bureau of Statistics on 31st May showed that manufacturing activity growth in China stagnated in May. The official manufacturing purchasing managers’ index, or PMI, slipped to 50 points, down 0.3 percentage points from the previous month. The reading sits at the threshold between expansion and contraction. Xinhe: The Bureau’s production index came in at 51.2 points—staying in expansion territory—while all other subindices covered by the PMI showed contraction. Notably, the new orders index stood at 49.9 points, down 0.7 percentage points compared to April’s reading, indicating that demand for manufactured products had declined. Francesca: China’s official non-manufacturing PMI, which gauges services and construction business activity, stood at 50.1 points in May, up by 0.7 percentage points from the previous month. The service business activity index registered 50.3 points, with rail transportation; telecommunications, radio, television, satellite transmission services; and insurance services all registering strong expansion of above 55 points. (MUSIC) Francesca: Findings of a private survey released on 1st June suggest that operating conditions in China’s manufacturing sector remained robust in May. The RatingDog China General Manufacturing PMI stood at 51.8 points in May, down from 52.2 points recorded in the previous month. This marks the sixth consecutive month that the index had stayed above the 50-point threshold, which indicates an overall increase in the manufacturing segment of China’s economy, compared to the previous month. Xinhe: Commenting on the data, Yao Yu, Founder of RatingDog—one of the companies responsible for the survey—attributed the positive finding to the fact that inflationary pressures on firms had eased, noting this had provided some relief to businesses when it comes to costs and pricing. At the same time, Yao also warned that softening demand growth and external orders both warrant attention. (MUSIC) Francesca: On 29th May, the European Commission College of Commissioners met to debate EU-China relations. An official read-out of the meeting noted that the Commission’s overarching approach to EU-China relations will continue to centre on the notion of de-risking, not decoupling, while also stating that although “China remains a critical partner, the current state of the trade and investment relationship is not sustainable.” It is expected that the outcomes of the debate will feed into upcoming discussions at the G7 Leaders’ Summit, set to take place from 14th to 16th June, as well as European Council meetings scheduled to take place this month. Xinhe: The European Chamber has been long highlighted the need for China to achieve a more equitable trade and investment relationship with the EU, warning that the current direction of travel is unsustainable. In this regard, it is a positive that recent major Chinese policy documents, including the Premier’s 2026 Report on the Work of the Government—published at this year’s Two Sessions—and the country’s 15th Five-year Plan, have included measures aimed at boosting domestic consumption and addressing ‘involution-style’ competition within the country. If successfully implemented, such actions could reduce pressure on the Chinese authorities to rely on exports as a driver of economic growth, and help the country to achieve more balanced trading relationships with key partners, including the EU. (MUSIC) Francesca: On 12th June, the European Chamber’s signature annual Midsummer Business Reception will take place in Beijing. XINHE: The event will be attended by senior members of the European business and diplomatic community based in the city, including standing Ambassador of the Delegation of the European Union to China, HE Jorge Toledo Albiñana, who will soon conclude his tenure in the country. Francesca: Join us at Rosewood Beijing to meet industry leaders, entrepreneurs and partners, as we bid farewell to Ambassador Toledo. To ensure your attendance, we encourage advance online registration and payment by 5th June. (MUSIC) XINHE: Thanks for listening, and don’t forget to tune in again next week. Francesca: In the meantime, please find useful links in the episode notes.

20th May 2026: April Industrial Production and Retail Sales

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 website@europeanchamber.com.cn. 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 [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 [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 [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 [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_ [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/zxfb/202605/t20260518_1963730.html] https://www.stats.gov.cn/sj/zxfbhjd/202605/t20260518_1963741.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 [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.

13th May 2026: April Foreign Trade Data

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 website@europeanchamber.com.cn. 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 [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/sj/zxfb/202604/t20260430_1963473.html] https://www.stats.gov.cn/english/PressRelease/202605/t20260506_1963595.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/zxfb/202605/t20260511_1963659.html] https://www.stats.gov.cn/sj/sjjd/202605/t20260511_1963657.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://www.stats.gov.cn/sj/zxfb/202605/t20260511_1963658.html] https://english.news.cn/20260511/8fc7920a97e641f696a2f8f16d4ebf89/c.html [https://english.news.cn/20260511/8fc7920a97e641f696a2f8f16d4ebf89/c.html] State Council executive meeting: https://english.www.gov.cn/news/202605/09/content_WS69ff2ff4c6d00ca5f9a0ad96.html [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/ [https://www.europeanchamber.com.cn/en/press-releases/3788/] Business Confidence Survey 2026 Launch: https://www.europeanchamber.com.cn/en/upcoming-events/29246 [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.

29th April 2026: March Industrial Profits

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 website@europeanchamber.com.cn. 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 [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 [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 [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.shtml [https://www.globaltimes.cn/page/202604/1359938.shtml]https://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 [https://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.

22nd April 2026: Q1 GDP Growth

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 website@europeanchamber.com.cn. 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 [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 [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 [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 [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/ [https://www.europeanchamber.com.cn/en/press-releases/3784/] Exporting Control: China’s Strategic Toolkit https://www.europeanchamber.com.cn/en/press-releases/3781/ [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.