This episode covers new measures for further optimising the management of cosmetics raw material safety information, with comments from Jacky Zhang, chair of the Cosmetics Working Group; reported profits of large industrial companies in China in January and February; and Shanghai’s Hongqiao Airport resumption of international flight services. Join our event on China’s economic recovery beyond the Two Sessions in Beijing on 31st March.
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NMPA notice on the management of safety information of raw materials used in cosmetics (in Chinese)
China industrial profits January-February official data (in Chinese):
Shanghai Hongqiao airport resuming international flights
Event: How will China’s Economic Recovery Play Out Beyond the Two Sessions?
European Chamber membership
RUI: Hello and welcome to China Shortcuts,
ROBBIE: the European Chamber’s weekly catchup on China’s business landscape.
RUI: On 27th March, China’s National Medical Products Administration announced new measures for further optimising the management of cosmetics raw material safety information (RMSI). This is seen as a welcome step by the industry, since the new measures are aimed at solving hurdles regarding the submission of raw materials’ safety information.
ROBBIE: The European Chamber’s Cosmetics working group has been advocating for the optimisation of the safety information submission management, as challenges and inconsistencies related to obtaining the required data from suppliers posed potential compliance risks related to product registration and notification. The working group conducted two separate surveys about the challenges its member companies faced due to this issue and provided data to the relevant authorities to help highlight the areas where improvement was needed.
RUI: When asked about the newly released notice, Jacky Zhang, chair of the European Chamber’s Cosmetics Working Group pointed out that member companies share the NMPA’s objective of protecting consumer safety, and expressed appreciation for the authority’s willingness to listen to industry feedback. He pointed out that, among other improvements, the grace period for the registration of raw material safety informationhas been extended, and companies can now provide required data themselves instead of having to rely on their suppliers to provide it, as was previously the case.
ROBBIE: The chair said that the working group is looking forward to continuing to work with the authorities to help build a fair, transparent and modernised regulatory environment for the cosmetics industry in China.
RUI: Profits of large industrial companies in China fell sharply in the first two months of 2023, as demand was still subdued while costs remained relatively high.
ROBBIE: According to the National Bureau of Statistics, industrial profits dropped nearly 23 per cent year-on-year, which was the largest decline recorded in almost three years. The bureau pointed at the uneven recovery of supply and demand when explaining the data, adding that revenues were shrinking at a faster rate than costs in the first two months of the year. Profit losses were especially high in the raw materials and packaging sectors. At the same time, manufacturers of new energy batteries and equipment saw steep increases in profits, while the consumer goods industry also showed signs of recovery, with gains falling at a slower pace than at the end of last year.
RUI: Shanghai’s Hongqiao airport resumed international flight services on 26th March, after a three-year suspension due to COVID-19 travel restrictions.
ROBBIE: International flights started operating again from Shanghai’s second largest airport, further facilitating travel between China and the rest of the world. The airport is expected to operate more than 300 flights on routes connecting China’s mainland to international destinations and its special administrative regions. In the upcoming flight season, Shanghai’s two airports are planning to handle over 2,200 flights daily, which would amount to about 80 per cent of the flight volume during the same period in 2019.
RUI: Following a year in which business activity in China experienced numerous ups-and-downs, together with low GDP growth, questions persist over the country’s ability to get its economy back on track in 2023.
ROBBIE: Although the world’s second largest economy is finally emerging from the pandemic and setting a course for the future, numerous overlapping crises are making for an uncertain global outlook. China can be a positive force in the world economy, but it will need to overcome significant headwinds, such as subdued overseas demand and ongoing geopolitical tensions.
RUI: Join us in Beijing on 31st March for a special event, co-organised by the China Europe International Business School and the European Chamber, to understand more about the road ahead. Please note that this event is only open to members of the Chamber, so if you are not a member yet, learn how you can become one by following the link provided in the show notes.
ROBBIE: Thanks for listening. Tune in again on 12th April.
RUI: In the meantime, find useful links in the episode notes.