China ShortCuts

This episode contains segments on: * China second quarter GDP growth; * Investment in China’s real estate market in June; * China June industrial output and retail sales; and * China June foreign trade data. European Commission Executive Vice President Teresa Ribera and three Commissioners met European Chamber representatives during their visit to China for the 6th EU-China High-Level Environment and Climate Dialogue on 13th and 14th July. 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: GDP growth https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960414.html [https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960414.html] https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960415.html [https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960415.html] Real estate https://www.stats.gov.cn/sj/zxfb/202507/t20250715_1960410.html [https://www.stats.gov.cn/sj/zxfb/202507/t20250715_1960410.html] Industrial production and retail sales https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960413.html [https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960413.html] https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960409.html [https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250715_1960409.html] Foreign trade data http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6623728/index.html [http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6623728/index.html] http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6623719/index.html [http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6623719/index.html] http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6623891/index.html [http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6623891/index.html] 6th China-EU High-Level Environment and Climate Dialogue https://climate.ec.europa.eu/news-other-reads/news/readout-6th-eu-china-high-level-dialogue-environment-and-climate-2025-07-15_en [https://climate.ec.europa.eu/news-other-reads/news/readout-6th-eu-china-high-level-dialogue-environment-and-climate-2025-07-15_en] https://english.www.gov.cn/news/202507/15/content_WS687587e6c6d0868f4e8f423b.html [https://english.www.gov.cn/news/202507/15/content_WS687587e6c6d0868f4e8f423b.html] 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 July 2025. (MUSIC) RUI: On 15th July, the National Bureau of Statistics—or NBS—released China’s second quarter gross domestic product—or GDP—data, which showed growth of 5.2 per cent. MARIANN: The figure represents a modest slowdown compared with the first quarter of 2025, when growth measured 5.4 per cent. However, the data suggests that China is still on track to meet its 2025 GDP growth target of around five per cent. In a press conference in conjunction with the data release, NBS Deputy Commissioner Sheng Laiyun noted that GDP growth this year has so far exceeded last year’s 5 per cent growth rate, something that he put down to overall stability in the Chinese economy. Policymakers will likely view above-target GDP growth as a sign that stimulus measures are working. However, it has yet to be seen if European businesses in China—for whom China’s economic slowdown is the top business challenge according to the European Chamber’s Business Confidence Survey 2025—have seen a positive change. (MUSIC) RUI: Investment in China’s real estate market—an ongoing pain point in China’s economy—continued to decline in June, according to data released by the NBS on 14th July. MARIANN: Real estate investments dropped 11.2 per cent in the first six months of 2025 and home prices continued to decline. Following the release of June data, NBS Deputy Commissioner Sheng Laiyun noted that more measures were needed to return the real estate market to a stable situation, a sign that more stimulus measures directed at the real estate sector are likely on the way. (MUSIC) RUI: On 15th July, the NBS released June industrial output and retail sales data, with both segments posting growth year-on-year. MARIANN: China’s industrial output grew 6.8 per cent year-on-year in June, up from 5.8 per cent in May. This resulted in a 6.4 per cent growth rate overall for the first half of 2025 compared to the same period last year. Retail sales grew 4.8 per cent year on year in June, down significantly from the 6.4 per cent year-on-year growth in May, suggesting that stimulus measures directed at the sector may not continue to bring sustainable growth throughout the year. Taking June data into account, the first six months of the year saw 5 per cent growth in retail sales overall. (MUSIC) RUI: On 14th July, the General Administration of Customs released trade data for June, with China posting year-on-year increases in both imports and exports. MARIANN:  Exports grew 5.8 per cent in USD terms or 7.2 per cent in Chinese yuan terms. Imports grew 1.1 per cent in USD terms or 2.3 per cent in Chinese yuan terms, marking the first time imports have grown in 2025. The growth comes amidst a temporary reduction in US-China tariffs, resulting in a more modest decline in Chinese exports to the United States compared to previous months. While a sudden increase in tariff levels could once again result in a rapid fluctuation in US-China trade, businesses have already begun shifting a significant volume of shipments to other markets. (MUSIC) RUI: On 14th June, Executive Vice President of the European Commission for a Clean, Just and Competitive Transition Teresa Ribera and Chinese Vice Premier Ding Xuexiang co-chaired the 6th EU-China High-Level Environment and Climate Dialogue in Beijing. EU Commissioners Wopke Hoekstra, Jessika Roswall and Dan Jørgensen joined senior Chinese counterparts for a plenary session and two sectoral sessions dedicated to the circular economy and energy. MARIANN: According to the meeting readouts from the EU and China, both sides reaffirmed their commitment to multilateralism, and pledged to work together towards the 30th Conference of the Parties to the United Nations Framework Convention on Climate Change, or COP30, which will be held in November in Brazil.  They discussed areas of future cooperation, including carbon markets and the EU’s Carbon Border Adjustment Mechanism, or CBAM, as well as continued collaboration on water, deforestation and wildlife. Commissioner Roswall reiterated the two sides’ commitment to the 2018 bilateral memorandum of understanding on circular economy, and discussed a future roadmap for sharing best practices and addressing relevant opportunities and challenges.  Commissioner Jørgensen and Administrator of China’s National Energy Administration Wang Hongzhi signed a joint readout setting accelerated clean-energy transition targets and ensuring energy security as core objectives. RUI: Ahead of the bilateral meetings, on 13th and 14th July, European Chamber representatives had met with Executive Vice President Ribera and the three Commissioners participating in the talks. MARIANN: During the meetings, Chamber representatives from relevant sectors provided updates on key advocacy issues including plastic recycling, water treatment, green electricity and export controls. Joining the meeting with Executive Vice President Ribera, European Chamber Executive Committee Member Bruno Weil provided recommendations on how to address imbalances in the EU-China relationship, aimed at ensuring engagement with China brings value to the EU. RUI: If you have not already, you can follow the European Chamber’s official WeChat account to read more about the Chamber’s latest advocacy activities. (MUSIC) MARIANN: 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: * Ministry of Commerce’s final ruling of anti-dumping probe into EU brandy imports; * Ministry of Finance announcement of restrictions on medical device imports from the EU; * China June Consumer Price Index and Producer Price Index; and * Caixin China Services Purchasing Managers Index in June. Listeners are also invited to attend the webinar on 10th July to hear experts’ insights on the EU-China Comprehensive Agreement on Investment and EU-China trade relations. 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 issues final ruling of anti-dumping probe into EU brandy imports [http://english.scio.gov.cn/m/pressroom/2025-07/04/content_117965300.html] Commerce ministry: China accepts price undertakings from 34 EU firms in final brandy anti-dumping probe ruling [http://english.scio.gov.cn/m/pressroom/2025-07/07/content_117965712.html] Ministry of Finance announcement of restrictions on medical device imports from the EU [https://gks.mof.gov.cn/guizhangzhidu/202507/t20250704_3967295.htm] Industrial producer prices fell 3.6% year-on-year in June 2025 – National Bureau of Statistics [https://www.stats.gov.cn/sj/zxfb/202507/t20250709_1960367.html] 国家统计局城市司首席统计师董莉娟解读2025年6月份CPI和PPI数据 – 国家统计局 [https://www.stats.gov.cn/sj/sjjd/202507/t20250709_1960365.html] Caixin China Service PMI [https://www.pmi.spglobal.com/Public/Home/PressRelease/67607556827441019a11e696bcef6616] Driving into CAI: Considerations and Perspectives for EU-China Trade Relations [https://www.europeanchamber.com.cn/en/upcoming-events/27886/_Webinar_Diving_into_CAI_Considerations_and_Perspectives_for_EU_China_Trade_Relations] European Chamber Membership [https://www.europeanchamber.com.cn/en/become-a-member] Transcript: Robbie: Hello and welcome to China ShortCuts, Xinhe: The European Chamber’s weekly catchup on China’s business landscape. Robbie: This episode was recorded on 9th July 2025. (MUSIC) Xinhe: On 4th July, China’s Ministry of Commerce announced the final ruling of its anti-dumping investigation into brandy imports from the European Union, following an initial investigation launched in January 2024.  Robbie: MOFCOM ruled that brandy imported from the EU is being dumped in the Chinese market, with duties ranging from 27.7 per cent to 34.9 per cent to be levied on European brandy imports as a result. One day later, on 5th July, China’s Ministry of Commerce reported it had accepted price undertakings from 34 EU brandy producers, which had agreed to not to sell their products below a certain price threshold in the China market and will therefore be exempt from the new duties. (MUSIC) Xinhe: On 6th July, China’s Ministry of Finance announced that European medical device manufacturers would be excluded from government procurement tenders worth over 45 million renminbi, or approximately 5.3 million euros. The development follows the EU electing last month to restrict Chinese medical device manufacturers from bidding for relevant EU public procurement tenders with a value over 5 million euros for a period of five years. Robbie: The European Chamber is concerned that the Ministry of Finance’s announcement lacked specificity, increasing the uncertainty faced by European companies operating in China, and raising the risk that local government authorities—responsible for issuing public tenders—may enforce the measure in an overly stringent manner.   Xinhe: Although the Ministry of Finance’s notice stated that European-invested enterprises in China—or在华欧资企业—are to be exempt from the restriction, no guidelines have been issued clarifying what constitutes a ‘European-invested enterprise’. Robbie: In addition, it is yet to clarified: (MUSIC) Xinhe: Amid ongoing prices wars in several saturated industry segments, deflationary pressures in China intensified in June, as producer prices entered their 33rd consecutive month of decline.  Robbie: Data published by the Chinese National Bureau of Statistics on 9th July revealed that producer prices fell 3.6 per cent year-on-year, the sharpest decrease recorded since July 2023. China’s Consumer Price Index—or CPI—registered a marginal 0.1% increase in June, relative to a year prior. However, the reading came on top of an already low base from last year and the CPI remains well short of the Chinese Government’s target of achieving ‘around 2 per cent’ consumer price inflation in 2025. (MUSIC) Xinhe: Findings of a private survey released on 2nd July suggest that China’s services sector continued to expand in June, for the 30th consecutive month. Robbie: The Caixin China Services Purchasing Managers Index—which is based on surveys conducted by S&P Global and sent to purchasing managers at around 650 private and state-owned companies—stood at 50.6 points in June. The rate of growth slowed, however, down from 51.1 points in May. Demand for services also increased at a slower pace, with new export orders falling for the second month in a row and at the fastest pace since December 2022. Employment at services firms contracted as a result, with survey respondents also linking this to cost concerns. (MUSIC) Xinhe: With multinational companies operating in an increasingly complex global environment, keeping up to date with the latest regulatory developments is extremely important. Robbie: Negotiated over seven years, the EU-China Comprehensive Agreement on Investment (CAI) had been set to put the two markets on a course for deepened engagement. However, after the EU and China reached a political agreement, ratification was put on ice in early 2021, after China sanctioned several European entities and members of the European parliament. After China unilaterally lifted sanctions on European members of parliament in April this year, the possibility of the CAI being resurrected has been raised, particular in Chinese media. Join us online on 10th July to hear experts’ insights on whether the terms of the agreement remains relevant and ambitious enough—and whether ratifying it could help put the EU and China on course to achieve a more sustainable relationship—or whether there are alternatives that would provide more value to the EU-China relationship. This event is open to both European Chamber members and non-members alike. Xinhe: To learn more about the benefits of becoming a Chamber member, please click the link in the show notes. (MUSIC) Robbie: Thanks for listening, and don’t forget to tune in again next week. Xinhe: In the meantime, please find useful links in the episode notes.

This episode contains segments on: * China January-May industrial profits; * US-China trade talks in London; * China May official purchasing managers’ index; and * New tax credit policy for FIE reinvestments. Listeners are also invited to join an event From Global Trends to Local Insight – Understanding Consumer Behaviour in China on 9th July in Beijing or online. 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 industrial profits January-May 2025 (NBS) https://www.stats.gov.cn/sj/zxfb/202506/t20250627_1960270.html [https://www.stats.gov.cn/sj/zxfb/202506/t20250627_1960270.html] Details of the US-China trade talks held in London (MOFCOM) https://www.mofcom.gov.cn/syxwfb/art/2025/art_00a79a2980e44ee8b8a2325786979e47.html [https://www.mofcom.gov.cn/syxwfb/art/2025/art_00a79a2980e44ee8b8a2325786979e47.html] China official PMIs, June (NBS) https://www.stats.gov.cn/sj/zxfb/202506/t20250630_1960283.html [https://www.stats.gov.cn/sj/zxfb/202506/t20250630_1960283.html] New tax credit policy for FIE reinvestments https://www.mofcom.gov.cn/zcfb/wgtzgl/art/2025/art_6454974b7ef047aa8bece340c5898950.html [https://www.mofcom.gov.cn/zcfb/wgtzgl/art/2025/art_6454974b7ef047aa8bece340c5898950.html] Chamber event: From Global Trends to Local Insight – Understanding Consumer Behaviour in China https://www.europeanchamber.com.cn/en/upcoming-events/27943/_Hybrid_From_Global_Trends_to_Local_Insights_Understanding_Consumer_Behaviour_in_China [https://www.europeanchamber.com.cn/en/upcoming-events/27943/_Hybrid_From_Global_Trends_to_Local_Insights_Understanding_Consumer_Behaviour_in_China] Transcript: XINHE: Hello and welcome to China ShortCuts, MARIANN: the European Chamber’s weekly catchup on China’s business landscape. XINHE: This episode was recorded on 2nd July 2025. (MUSIC) XINHE: According to data released by the National Bureau of Statistics on 27th June, in the January-May period, profits at larger industrial firms in China declined at the sharpest year-on-year rate. MARIANN: Industrial profits dropped 1.1 per cent in the first five months of the year compared to the same period last year. Total profits for the first five months of the year were at the second lowest level of the past five years. A breakdown by the three key industrial sectors showed a significant drop in mining profits and a continued slowdown in the increase of manufacturing profits. The Chamber’s Business Confidence Survey 2025 found that European businesses’ concerns over economic headwinds weigh on sentiment over future profitability and growth, with record high levels of respondents expressing pessimism over their two-year outlook in both regards. A key challenge for profitability is deflation: producer prices declined for the 32nd consecutive month in May 2025. (MUSIC) XINHE: In a statement released on 27th June, China’s Ministry of Commerce confirmed that the United States and China reached additional agreements during their trade talks held in London on 9th and 10th June. MARIANN:  New details of the bilateral trade framework include a pledge from China to speed up the export of rare earth minerals to the US by reviewing and approving export applications that meet the stipulated conditions. The statement also said that the US will cancel a series of restrictive measures against China in return, but it did not give further details on which measures would be revoked. Crucially, at the London meeting, the two sides reaffirmed the implementation of the agreement reached during trade talks held in Geneva in May. A key breakthrough at the Geneva meeting was that the two sides agreed to remove 91 per cent of the tariffs mutually imposed in April. A further 24 per cent of tariffs were suspended for 90 days. These moves brought US tariff rates on Chinese goods to 30 per cent, while US imports to China are currently subject to 10 per cent tariffs. (MUSIC) XINHE: Data published by the National Bureau of Statistics on 30th June showed that manufacturing activity in China continued to decline in June. However, the rate of contraction narrowed as supply and demand both picked up from the previous month. MARIANN:  The official manufacturing purchasing managers’ index or PMI stood at 49.7 points in June. This was the highest level in three-months, but it still missed the 50-point mark, which separates growth from contraction. It was the second month in a row when large manufacturing firms were the only ones able to expand their activity, with their smaller counterparts still reporting contraction. Overall, both production and new orders increased, however, growth in demand was moderate. New export and import orders both continued to fall, and headcount reduction continued as well. The official non-manufacturing PMI, which comprises construction and services data, stood at 50.5 points in June. This was the second highest level recorded in 2025 so far. While subindexes improved from the previous month, most key indicators, including new orders, sales prices and employment remained in contraction territory. (MUSIC) XINHE: On 30th June, the Ministry of Finance, the State Administration of Taxation and the Ministry of Commerce jointly announced a new tax credit policy for the reinvestments of foreign investors’ dividends In China. MARIANN:  According to the announcement, when foreign-invested companies that are resident in China fund their direct investments in the country from dividends accumulated domestically, they will be granted a ten per cent tax credit. Qualifying investors will also be able to carry forward unused credit. The measure retroactively takes effect from 1st January 2025 for a three-year period, meaning that investors can apply for tax credits on reinvestments made since the beginning of the current year. MUSIC) XINHE: In today’s fast-paced and highly competitive global market, understanding consumers is more critical than ever. This is particularly true in China, where the consumer landscape is both dynamic and complex. MARIANN:  To navigate this market, brands must understand the unique preferences, purchasing habits and cultural nuances that shape Chinese consumer behaviour. XINHE: Join us on 9th July online or in person in Beijing to hear experts’ insights on consumer behaviour trends both globally and within the Chinese market and to learn how these trends shaped the recent 6.18 shopping festival in China. This event is exclusively open to European Chamber members. If you are not a member yet, but would like to benefit from our services, please follow the link in the shownotes for details on how to join. (MUSIC) MARIANN: Thanks for listening, and don’t forget to tune in again next week. XINHE: In the meantime, please find useful links in the episode notes.

This episode contains segments on: * China January-May total use of foreign direct investment; * China January-May fiscal revenue; * Tax Reporting for internet platform enterprises; and * Curbing “involution-style” competition. The May/June 2025 edition of the Chamber’s bimonthly magazine, EURObiz, is available to download from the Chamber’s website. 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 total use of FDI, January-May 2025 (MOFCOM) https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_10c6c4fd380c403e944deac872447b6e.html [https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_10c6c4fd380c403e944deac872447b6e.html] http://english.scio.gov.cn/pressroom/2025-06/23/content_117942050.html [http://english.scio.gov.cn/pressroom/2025-06/23/content_117942050.html] Fiscal revenue https://gks.mof.gov.cn/tongjishuju/202506/t20250620_3966204.htm [https://gks.mof.gov.cn/tongjishuju/202506/t20250620_3966204.htm] Tax Reporting for Internet Platform Enterprises https://www.gov.cn/yaowen/liebiao/202506/content_7029056.htm [https://www.gov.cn/yaowen/liebiao/202506/content_7029056.htm] https://english.news.cn/20250623/cfb6110650a4456cab826ec7db15bbb7/c.html [https://english.news.cn/20250623/cfb6110650a4456cab826ec7db15bbb7/c.html] Curbing “involution-style” competition https://www.chinanews.com.cn/gn/2025/06-23/10436434.shtml [https://www.chinanews.com.cn/gn/2025/06-23/10436434.shtml] EURObiz Issue 86 (May/June 2025) https://www.europeanchamber.com.cn/en/eurobiz-archive-2025 [https://www.europeanchamber.com.cn/en/eurobiz-archive-2025] 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 25th June 2025. (MUSIC) RUI: Data released by the Ministry of Commerce on 20th June showed that the actual use of foreign direct investment—or FDI—in China continued to decline year-on-year, now down 13.2 per cent for the January-May 2025 period. MARIANN: The ongoing decline is significant, given that FDI levels for the same five months last year were already down nearly 30 per cent year-on-year from 2023. Total reported FDI for the year now stands 358.19 billion Chinese yuan, only slightly above 2020 levels which were depressed amidst global uncertainty caused by the COVID-19 pandemic. The majority of new investment—259.64 billion Chinese yuan—came from service sector investments, while the rest—91.52 billion Chinese yuan— was made up of manufacturing investments. The most invested sectors were e-commerce services, aerospace equipment manufacturing and chemical pharmaceuticals manufacturing. The decline in FDI is evident among European businesses as well. According to the Chamber’s Business Confidence Survey 2025, China is only a top destination for future investments for 12 per cent of respondents, a record low since the question was first asked in 2012. (MUSIC) RUI: China’s fiscal revenue fell 0.3 per cent year on year for the first five months of 2025, according to data released by the Ministry of Finance on 20th June. MARIANN: The decline, made up of a 1.3 per cent drop in tax revenue and a 6.2 per cent increase in non-tax revenue, comes as the Chinese economy continues to suffer in the face of US-China trade tensions. The January to May period saw an 11.9 per cent year-on-year decline in state land-sale revenue, indicative of ongoing challenges in China’s property sector. While additional monetary stimulus measures were announced in early May, it is likely that more time is needed before any impact will be seen. RUI: On 23rd June, the State Council released the Provisions on Tax-Related Information Reporting by Internet Platform Enterprises, in a move aimed at increasing tax revenue from operators that sell through online platforms. MARIANN: The new rules come in tandem with a drive to increase tax enforcement. The Provisions will require internet platform operators to submit information on operators that use their platforms, with the stated aim of advancing fair competition by reducing tax avoidance. In a press conference, a spokesperson for the State Taxation Administration emphasised that the Provisions were not intended to increase the tax burden but only aimed at ensuring operators currently underpaying tax would be forced to pay at normal levels. (MUSIC) RUI: At a press conference on 23rd June, Huang Haihua, a spokesperson for the Legislative Affairs Commission of the National People’s Congress Standing Committee, announced that a second session would be held this week to deliberate an updated draft of the Law Against Unfair Competition, which now includes specific provisions to prevent ‘involution-style’ or rat race competition. MARIANN: The updated draft law is among the latest measures intended to address ‘involution’ in China’s economy. Huang noted that the second revision of the draft law was updated based on stakeholder feedback to include measures to rectify ‘involution-style’ competition in the economy, in addition to a specific set of measures aimed at ‘involution-style competition’ on online platforms. The law also takes aim at ‘confusion-based unfair competition’ on online platforms, such as when operators intentionally use trademarks for other products as keywords to confuse consumers. (MUSIC) RUI: The May/June edition of the Chamber’s bimonthly magazine—EURObiz—is now available. MARIANN:  This edition focuses on how businesses can thrive in China’s evolving market, particularly in an economy with a notoriously low consumption rate. It contains articles on intellectual property and data protection in China’s ecommerce market, China’s 2025 Action Plan for Stabilising Foreign Investment, how European brands can rethink how they reach Chinese consumers and an update on China’s post-COVID travel recovery. RUI: You can download the magazine from the Chamber’s website for free. (MUSIC) MARIANN: 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 May macroeconomic data; * European Commission President Von der Leyen’s statements at the G7 summit in Canada; and * 10th EU-China Environment Policy Dialogue. Listeners are also invited to attend the event Unlocking opportunities in China’s silver economy on 25th June in Beijing. Attendees can also join online. 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 May macroeconomic data (NBS) https://www.stats.gov.cn/sj/zxfb/202506/t20250616_1960173.html [https://www.stats.gov.cn/sj/zxfb/202506/t20250616_1960173.html] European Commission President Von der Leyen’s statements at the G7 summit in Canada https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1522 [https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1522] https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1521 [https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1521] 10th EU-China Environment Policy Dialogue https://ec.europa.eu/commission/presscorner/detail/en/speech_25_1495 [https://ec.europa.eu/commission/presscorner/detail/en/speech_25_1495] https://english.www.gov.cn/news/202506/17/content_WS6851316cc6d0868f4e8f3696.html [https://english.www.gov.cn/news/202506/17/content_WS6851316cc6d0868f4e8f3696.html] European Chamber event: Unlocking opportunities in China’s silver economy https://www.europeanchamber.com.cn/en/upcoming-events/27836/_Hybrid_Unlocking_Opportunities_in_China_s_Silver_Economy_A_Growing_Market_for_Foreign_Investors [https://www.europeanchamber.com.cn/en/upcoming-events/27836/_Hybrid_Unlocking_Opportunities_in_China_s_Silver_Economy_A_Growing_Market_for_Foreign_Investors] 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 18th June 2025. (MUSIC) RUI: According to data published by the National Bureau of Statistics on 16th June, industrial production growth in China slowed in May, while retail sales growth accelerated. Overall, however, in the first five months of the year, production increased faster than consumption.   MARIANN: Production at larger industrial firms rose 5.8 per cent year-on-year in May. This was the slowest pace of increase recorded since last November. The total value of retail sales surged 6.4 per cent compared to last May – the fastest pace seen in nearly a year and a half. This was not yet enough, however, to offset the trend of lopsided growth in terms of supply and demand: in the first five months of 2025, industrial production rose 6.3 per cent year-on-year, significantly faster than retail sales at 4 per cent.   (MUSIC) RUI: On 16th June, speaking at the Group of Seven summit held in Canada, European Commission President Ursula Von der Leyen expressed strong criticism of China over its export controls on rare earth minerals and called out the country for its market practices that she said constituted “distortion with intent”. MARIANN: Speaking on rare earth minerals, Von der Leyen stressed that currently China dominates the global market for rare earth permanent magnets, and accused the country of weaponising this position to undermine competitors in key industries. She warned that even though China has given signals that it may loosen its relevant restrictions, the threat remains. Therefore, she called on members of the G7 to respond in a united manner and create alternatives along the supply chain both in home markets and around the world. In a separate statement delivered during a session on the global economic outlook, Von der Leyen called China’s trade and market practices the G7’s biggest collective problem, accusing China of undercutting intellectual property protections and providing subsidies with the aim of dominating global manufacturing and supply chains. Commission President Von der Leyen’s tone suggests that the EU finds the imbalance in its trade and economic relationship with China increasingly harmful for its own market and companies. The Chamber has been sharing its concerns with the Chinese Government that third markets are increasingly likely to take action to protect their own economic interests if China does not address the issue of its growing trade surplus with many of its key trade partners and provide a level playing field for all companies operating in the Chinese market in a timely manner. (MUSIC) RUI: On 13th June, the 10th EU-China Environment Policy Dialogue was held in Brussels, with the two sides agreeing to deepen their environmental cooperation. MARIANN: The dialogue was co-chaired by Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy of the European Commission and Chinese Minister of Ecology and Environment Huang Runqiu. Areas for further cooperation discussed during the meeting included negotiations for an international plastic pollution agreement, with the final round of negotiations for an international legally binding instrument due in August, air and chemical pollution control, water resource protection and deforestation-free supply chains. The 6th High Level Environment and Climate Dialogue between the EU and China will be held mid-July, during which high-level exchanges will continue on key areas of engagement between the two sides. (MUSIC) RUI: China is aging – and fast. In just over two decades, the share of people aged 60 and above has more than doubled, rising from 10.18 per cent in 2000, to 22 per cent in 2024. That is 310 million people today. By 2035, this number is expected to exceed 400 million – roughly the combined populations of the UK and the US. This demographic shift presents not just a social challenge, but also a powerful economic opportunity. MARIANN: Recognising this potential, the Chinese Government has taken active steps to foster the growth of the so-called ‘silver economy’ – the expanding market for goods and services to people aged 50 and older. In 2024, the first national policy document focused solely on this sector was issued. This landmark initiative outlines increased financial support for elderly care facilities, programmes and services. More recently, the 2025 Action Plan for Stabilising Foreign Investment opened the door for foreign-owned projects in healthcare, education and biotechnology, which may create exciting opportunities for international investors. RUI: Join us on 25th June online or in person in Beijing for an insightful event supported by the EU SME Centre, which will explore the current landscape and future outlook of China’s silver economy. Find out about key policy updates, consumer trends and practical strategies for entering or finding new opportunities in the sector. (MUSIC) MARIANN: 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.