This episode contains segments on:
- Fiscal policy measures to boost the economy;
- Foreign trade data in September;
- Consumer and Producer Price indices in September; and
- Draft law on private sector promotion.
From the Chamber’s side, President Jens Eskelund and Vice President Stefan Bernhart visited key stakeholders in Brussels from 8th to 10th October.
Contact:
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Read more:
Fiscal support measures
https://english.www.gov.cn/news/202410/12/content_WS670a0d75c6d0868f4e8ebc0f.html
China foreign trade data, September (GACC)
http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6148735/index.html
http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6149154/index.html
China PPI, CPI, September (NBS)
https://www.stats.gov.cn/sj/sjjd/202410/t20241013_1956897.html
Draft law on private sector promotion
http://en.moj.gov.cn/2024-10/11/c_1031232.htm
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 October 2024.
(MUSIC)
RUI: At a press conference held on 12th October, China’s Ministry of Finance announced a series of fiscal policy measures aimed at boosting the economy.
MARIANN: Without disclosing any concrete figures, the ministry said that the government will significantly increase the debt ceiling to ease pressure on local governments. Special treasury bonds will also be issued to inject capital into large state-owned commercial banks and enhance their lending capacity. Increased support for targeted groups was also announced, such as enhancing financial aid for college students. China’s Finance Minister Lan Fo’an hinted at the possibility of additional fiscal measures, noting that other tools are currently being looked at.
(MUSIC)
RUI: Data released by China’s customs authority on 14th October showed that the year-on-year increase of the country’s exports slowed to the lowest rate in five months in September, with import growth also hitting a three-month low.
MARIANN: In US dollar terms, the total value of China’s exports rose 2.4 per cent compared to the same period last year. In September, the United States was China’s largest export market, followed by the Association of Southeast Asian Nations, or ASEAN, and the European Union. The total value of imports inched up 0.3 per cent year-on-year in September, with ASEAN ending the month as the largest source of imports to China’s mainland, followed by the EU and Taiwan.
(MUSIC)
RUI: China’s producer prices fell at the fastest pace recorded in the past half year, while the rise in consumer prices slowed in September, according to data from the National Bureau of Statistics published on 13th October.
MARIANN: The producer price index dropped 2.8 per cent compared to the same period last year. The year-on-year comparison of the prices producers in China charge at the factory gate has been showing a decline every month since October 2022. While readings in recent months had indicated a slowdown in price decreases, the year-on-year decline has accelerated since August. The National Bureau of Statistics attributed the fall in producer prices to both lower international commodity prices and insufficient domestic demand.
Consumer prices edged up 0.4 per cent in September, with the rate of increase slightly less than the previous two months.
(MUSIC)
RUI: On 10th October, China’s Ministry of Justice released a draft law on private sector promotion to solicit public feedback.
MARIANN: The stated aim of the draft law is to ensure that private businesses can participate and compete in the China market on a fair basis. It contains provisions on improving the overall environment for private investment, improving support for technological innovation in the private sector, and strengthening the protection of the rights and interests of private companies.
The Chamber noted that certain provisions included in the draft law may address some of its member concerns related to market access and regulatory barriers. One example is the provision calling for increased transparency and fairness in public procurement. However, the lack of detail in the draft means that it is too early to determine its potential impact.
(MUSIC)
RUI: European Chamber President Jens Eskelund and Vice President Stefan Bernhart visited key stakeholders in Brussels last week. The three-day visit included meetings with European External Action Service Secretary General Stefano Sannino and DG Grow Director-General Kerstin Jorna. They also met with the China Chamber of Commerce to the EU’s Chairman Liu Jiandong and Secretary General Fang Dongkui.
MARIANN: During the meetings, President Eskelund presented the European Business in China Position Paper 2024/2025. The report focuses on the urgent need for the Chinese authorities to follow through on reform pledges announced in the past year, with business confidence now at an all-time low.
RUI: President Eskelund and Vice President Bernhart emphasised the importance of achieving a level playing field for European businesses in China as a prerequisite for the EU and China to build a more equitable relationship. Meeting discussions also focussed on China’s economy and the state of EU-China relations.
(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.