This episode contains segments on:
- The EU-China Cross-Border Data Flow Communication Mechanism launch;
- August data released for China’s official Purchasing Managers’ Index; and
- Preliminary ruling in the anti-dumping probe of EU brandy imports.
Also, listeners are invited to join the launch of the European Business in China Position Paper 2024/2025 on 11th September 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:
Launch of EU-China Cross-Border Data Flow Communication Mechanism
China Official PMIs, August (NBS)
https://www.stats.gov.cn/sj/zxfb/202408/t20240831_1956161.html
Preliminary Ruling in the Anti-dumping Probe of EU Brandy Imports (MOFCOM)
https://www.mofcom.gov.cn/zcfb/blgg/art/2024/art_c2fc8bc957cf4d028cd91fb6adc803cc.html
European Chamber event: Launch of The European Business in China Position Paper 2024/2025
European Business in China Position Paper 2024/2025 (europeanchamber.com.cn)
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 4th September 2024.
(MUSIC)
RUI: On 27th August, the European Union and China launched a new mechanism, which is aimed at facilitating cross-border flows of non-personal data for European companies operating in China.
MARIANN: The mechanism was set up following agreements reached at the 2023 EU-China High-Level Dialogue and the EU-China High-Level Economic and Trade Dialogue. At the inaugural meeting held on 27th August, Sabine Weyand, director-general of the European Commission’s Directorate-General for Trade, stressed that the EU’s objective is to address European businesses’ concrete concerns regarding cross-border data transfers.
RUI: Commenting on the launch of the new mechanism is Ma Xiaowen, chair of the European Chamber’s Cybersecurity Sub-working Group.
MA XIAOWEN: As we can see from the official announcements, the communication mechanism focusses on the cross-border transfer of non-personal data, which is a type of data that could have close business relevance. This indicates that cross-border data flows are viewed here not from a privacy protection angle but from a trade angle, which is why on the EU side, DG Trade is taking the lead. We hope that through the mechanism there could be further clarification on the scope of the so-called ‘important data’ and on the related transfer restrictions which should be defined as narrowly as possible. It could also be helpful to have a holistic understanding about the interplay between all the national, sectoral and local rules, which are leading to a quite dynamic compliance landscape. I feel that this kind of near-term guidance would be very welcome, as companies are trying to move forward with their product and investment decisions. And then, of course, in the long run, we also look forward to more synergies and areas of cooperation being identified by the two sides.
(MUSIC)
RUI: According to official data released by China’s statistics bureau on 31st August, manufacturing activity in the country continued to drop. Services and construction stayed in expansion territory, but only achieved mild growth.
MARIANN: The official manufacturing purchasing managers’ index, or PMI, sank to 49.1 points in August. This was the lowest level since February, and marked the fourth consecutive month of the reading staying below the 50-point benchmark that separates growth from contraction. Subindices for production and new orders both showed a further dip, with demand contracting at the faster pace. A breakdown of the data by company size revealed that large manufacturing firms were still able to maintain growth, while contraction accelerated at both small and medium-sized companies.
The non-manufacturing PMI, which reflects activity in the services and construction sectors, indicated a slight acceleration in growth. Expansion was most notable in the rail and air transportation, postal, telecommunications and broadcasting, cultural, sports and entertainment services sectors.
(MUSIC)
RUI: On 29th August, China’s Ministry of Commerce disclosed its preliminary ruling in its anti-dumping investigation into brandy imported from the European Union. The probe found that there was evidence that dumping had taken place. However, the Ministry announced that it would not introduce provisional anti-dumping measures for the time being.
MARIANN: The preliminary assessment stated that brandy imported from the EU was sold at a dumping margin ranging from 30.6 to 39 per cent. The probe was launched early January. The Ministry of Commerce stated that they started the investigation following complaints from the Chinese brandy industry. However, the move was widely seen as a response in kind, since the probe was launched shortly after the EU’s anti-subsidy investigation into battery electric vehicles imported from China.
(MUSIC)
RUI: While doing business in China has never been easy, companies previously viewed the complex challenges they encountered as the ‘growing pains’ of an emerging market. However, with the risks of doing business increasing and the rewards decreasing, many investors are now confronted with the reality that their approach to the China market may require a strategic rethink.
MARIANN: There have been positive signals that China intends to address some of the challenges faced by foreign enterprises. A most notable example was the State Council’s Opinions on Further Optimising the Foreign Investment Environment and Increasing the Attraction of Foreign Investment, which was issued in August 2023. However, one year on, little to no progress has been made on the implementation of key points contained in the document.
RUI: Join us on 11th September, for the launch of the European Chamber’s annual Position Paper, the culmination of six months dedicated work by our 50 working groups, sub-working groups, desks and fora. The paper, which forms the cornerstone of the Chamber’s advocacy actions, details the challenges faced by European companies operating in China and provides more than 1,000 constructive recommendations to the Chinese Government on how they can be resolved.
(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.