This episode contains segments on:
- China’s actual use of foreign direct investment from January to July;
- China macroeconomic indexes in July;
- 2024 negative list for foreign investment access and measures to reach 2024 economic targets;
- European Commission’s draft definitive findings in anti-subsidy probe into battery electric vehicles imported from China.
Also, listeners are invited to attend the HR training for building a diverse and inclusive team on 29th August online or in person in Beijing.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China January-July FDI (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2024/art_d8476a0f316349d1b4dac2a2e12fe03a.html
China macroeconomic indexes, July (NBS)
https://www.stats.gov.cn/sj/zxfb/202408/t20240815_1955981.html
https://www.stats.gov.cn/sj/zxfb/202408/t20240815_1955984.html
State Council meetings
https://english.www.gov.cn/news/202408/20/content_WS66c3d39ac6d0868f4e8ea107.html
https://english.www.gov.cn/news/202408/16/content_WS66bf4569c6d0868f4e8e9fdc.html
European Commission draft definitive findings in anti-subsidy probe into BEVs imported from China
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_4301
https://www.mofcom.gov.cn/xwfb/xwfyrth/art/2024/art_0d8d113e1e414bcabfaa3f29636c49a3.html
https://www.mofcom.gov.cn/xwfb/xwfyrth/art/2024/art_0d8d113e1e414bcabfaa3f29636c49a3.html
European Chamber event: HR Training for Building a Diverse and Inclusive Team
https://www.europeanchamber.com.cn/en/upcoming-events/26348/
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 21st August 2024.
RUI: On 16th August, China’s Ministry of Commerce released the latest data on the country’s actual use of foreign direct investment. It showed that China’s total utilisation of FDI in the first seven months of 2024 dropped 29.6 per cent from a year ago.
MARIANN: China’s actual use of FDI in the January-July period totalled nearly 540 billion yuan. While foreign investment in the country dropped in overall value, the ministry’s data showed that the number of newly-established foreign-invested firms in the country surpassed 31 thousand, up 11.4 per cent year-on-year. A breakdown of the utilisation of FDI indicated that compared to the same period last year, slightly more foreign investment was channelled into manufacturing. The year-on-year increase was especially significant in the medical devices and the computer and office equipment manufacturing sectors. However, the ministry did not provide the actual FDI figures for these areas.
(MUSIC)
RUI: On 15th August, China’s National Bureau of Statistics published a series of macroeconomic data for July, which indicated mixed economic activity.
Industrial production grew 5.1 per cent year-on-year. This was the lowest rate of increase recorded since March, and below the 5.9 per cent average growth rate of the first seven months of 2024. Production expanded in 33 out of the 41 sectors surveyed by the statistics bureau. Examples of industries where production dropped from the same period last year include several sectors related to construction, such as cement and crude steel. Weighing on the construction sector is China’s ongoing real estate slump. In the first seven months of 2024, investment into real estate development fell 10.2 per cent year-on-year.
The total value of retail sales increased 2.7 per cent year-on-year. This was slightly above the June growth rate, but in absolute terms, the total value of retail sales in July was the lowest recorded since April. This was primarily due to relatively subdued sales of goods, which contributed close to 90 per cent of total retail sales.
The surveyed urban unemployment rate stood at 5.2 per cent in July, which was the highest level since March.
(MUSIC)
RUI: On 19th August, the State Council approved the 2024 negative list for foreign investment access, which is to abolish restrictions on foreign investment in the manufacturing sector.
MARIANN: The document is also aimed at the further opening of sectors including telecommunications, education and health services. The executive meeting held on Monday came only three days after the State Council’s fifth plenary meeting, during which Chinese policymakers vowed to implement measures to reach this year’s economic targets. They listed expanding domestic demand, supporting private investment and attracting foreign investments among the key areas where further efforts are needed. Chinese Premier Li Qiang, who was chairing the meeting, also stressed the importance of listening to businesses feedback and addressing the challenges they face.
(MUSIC)
RUI: On 20th August, the European Commission disclosed a draft of its definitive findings in its ongoing anti-subsidy probe into battery electric vehicles imported from China.
MARIANN: The draft contains adjusted duty rates, ranging from 9 to 36.3 per cent. These were revised based on new findings of the investigation and comments sent by interested parties. The Commission also stated that it would not retroactively collect countervailing duties. Affected companies have ten days to request hearings and provide comments, after which member states will vote on the Commission’s proposal. Reacting to the Commission’s decision, China’s Ministry of Commerce said that since the end of June, China and the EU had conducted more than 10 rounds of technical consultation, and the Chinese government and industry players provided tens of thousands of pages of legal documents and other evidence. The Ministry accused the European Commission of disregarding some of the opinions put forward by the Chinese side in its final decision.
(MUSIC)
RUI: Multiple research studies show that diverse teams bring many benefits to organisations. Companies that build their teams on the foundations of diversity and inclusion create an advantage for themselves, as people from different groups—be it age, nationality or gender—offer a broader scope of perspectives when looking at a problem.
MARIANN: Overcoming unconscious bias is key to building an inclusive team. It requires team members to deepen their self-awareness, acknowledge their unconscious biases, and develop strategies to address them.
RUI: Join our training on 29th August, to learn about the different types of unconscious biases, find out how they can influence both individual development and teamwork, and how you can manage them.
(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.