This episode contains segments on:
- Shanghai’s plan in extending policies trialled in free trade zones to new innovation zones;
- China’s anti-subsidy probe into EU dairy products;
- Industrial profits from January to July;
- Budget spending and revenues generated through land sales from January to July.
Also, listeners are invited to attend the event on 4th September online or in person in Beijing on China’s economic prospects and potential opportunities for businesses.
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:
Notice on the Issuance of Construction Plan of the First Batch of Innovation Zones in Shanghai
https://www.shanghai.gov.cn/gwk/search/content/6e3bd073c9c14bf98960754261bd0b26
MOFCOM’s announcement of anti-subsidy probe into EU dairy products
https://trb.mofcom.gov.cn/myjjdc/art/2024/art_77edd59bb5a94b76b349a4c0ad46f4c8.html?s=31
China industrial profits, January-July (NBS)
https://www.stats.gov.cn/sj/zxfb/202408/t20240827_1956106.html
China’s budget spending and revenues, January-July (Bloomberg, MOF)
https://gks.mof.gov.cn/tongjishuju/202408/t20240826_3942479.htm
European Chamber event: China’s Economic Momentum: Trends and Opportunities for FIEs?
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 28th August 2024.
(MUSIC)
RUI: On 21st August, the Shanghai Municipal Government issued a Notice containing seven plans for constructing a system of innovation zones in the city’s different areas. The measures detailed in the plans offer a framework for the future development of these areas.
MARIANN: The Notice introduces the creation of innovation zones across multiple districts of the city, and highlights that this is just a first batch of plans issued for this purpose. The measures listed in each plan suggest that some of the policies trialled in Shanghai’s free trade zones will be extended to the new innovation zones too.
RUI: The Chamber’s Shanghai Chapter noted that many topics mentioned in the Notice are in line with the key issues that the Chapter focusses on in its advocacy activities. These include the development of guidelines for cross-border data flow, the promotion of services for foreign talent, and the optimisation of cross-broader travel for foreigners.
Also, the sectors listed in the Notice, such as healthcare, financial services, maritime trade and green development are highly relevant to the development of European businesses in Shanghai.
(MUSIC)
RUI: On 21st August, China’s Ministry of Commerce announced a probe into subsidies provided to dairy producers in the European Union. The ministry cited twenty subsidy programs that the investigation would focus on. The subsidy programs include some offered by the EU as well as some provided in certain member states.
MARIANN: The announcement came just one day after the European Commission disclosed its definitive findings in its anti-subsidy probe into battery electric vehicles imported from China. Regrettably, the use of trade defence instruments by one government is increasingly being responded to in kind by the recipient government. The EU is also currently reviewing the support China is granting for wind turbine producers, while China has launched anti-dumping investigations into EU brandy and pork products.
(MUSIC)
RUI: On 27th August, China’s National Bureau of Statistics disclosed that during the first seven months of this year, profits at larger industrial firms increased 3.6 per cent year-on-year.
MARIANN: The rate of growth in profits showed mild acceleration from the previous two months. The year-on-year growth in July alone was 4.1 per cent. In the January-July period, out of the three industries of mining, manufacturing and utilities, profits rose the most among utilities providers, surging over 20 per cent. Manufacturing firms saw an average profit growth of 5 per cent, while mining companies’ profits fell 9.5 per cent compared to the same period last year.
(MUSIC)
RUI: On 26th August, Bloomberg reported that in the first seven months of 2024, China’s budget spending and income generated through land sales both fell at a record pace.
MARIANN: According to Bloomberg’s calculations based on data released on the same day by China’s Ministry of Finance, combined spending in the general budget and the government fund account was about 19.7 trillion yuan. This was about 2 per cent lower than in the same period last year. The paper attributed this fall to a 8.9 per cent fall in land-related expenditure, as revenues from land sales in July dropped over 40 per cent year-on-year – the sharpest decrease since 2016. Combined revenue of the two budget accounts stood at 15.9 trillion yuan in the January-July period, dropping 5.3 per cent year-on-year. The country’s budget deficit was 3.8 trillion yuan, about 15 per cent up from the same period last year.
(MUSIC)
RUI: While China’s economy showed some signs of recovery in the first half of 2024, it is still facing many headwinds, including weak domestic consumption and a continuing property slump.
MARIANN: In light of these issues, meeting China’s growth target for 2024 could prove challenging.
RUI: Join us on 4th September online or in person in Beijing, to hear experts and business representatives delve into China’s economic prospects, analyse policy shifts following the Third Plenary Session and identify potential opportunities for foreign businesses in China.
(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.