This episode contains segments on:

• Value-added tax refund adjustment for certain exports;
• Industrial output in October;
• Retail sales in October;
• New export regulations on dual-use items.

Listeners are also invited to join a conference on 27^th November in Beijing to explore the economic opportunities in National Climate Targets.

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:

Export tax refunds

https://fgk.chinatax.gov.cn/zcfgk/c102416/c5235887/content.html

Industrial output

https://english.www.gov.cn/archive/statistics/202411/15/content_WS6736b646c6d0868f4e8ecfc6.html

https://www.stats.gov.cn/sj/zxfb/202411/t20241115_1957430.html

Consumer spending

https://www.stats.gov.cn/sj/zxfb/202411/t20241115_1957427.html

https://english.www.gov.cn/archive/statistics/202411/15/content_WS6736fbf2c6d0868f4e8ecff4.html

Dual use export control list

https://www.mofcom.gov.cn/zcfb/dwmygl/art/2024/art_e56833e346534981b250bae772d0cbce.html

Chamber event: Growing Green – How Does Industry Leverage the Economic Opportunities in National Climate Targets?

https://www.europeanchamber.com.cn/en/upcoming-events/26843

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 20^th November 2024.

(MUSIC)

RUI: On 15^th November the Ministry of Finance and the State Taxation Administration released a notice announcing the adjustment and cancellation of value added tax—or VAT—refunds for certain exports, a move aimed at addressing low export prices in the face of overcapacity concerns.

MARIANN: The adjustment—effective 1^st December—cancels the VAT refund entirely for 59 products, including aluminium and copper products, and lowers the VAT refund from 13 to nine per cent for 209 products – including solar and lithium battery products. The decision comes amid increased international pressure on China to address market distortions caused by its exports. China’s exports of the impacted products are expected to surge for the rest of November in an effort to export as much as possible before the 1^st December deadline.

(MUSIC)

RUI: China’s industrial output grew 5.3 per cent year-on-year in October according to data released by the National Bureau of Statistics —or NBS—on 15^th November.

MARIANN: The figure—missing expectations – and down from 5.4 per cent in September—indicates that stimulus efforts have yet to have the desired impact on the Chinese economy. Even so, NBS spokesperson Fu Linghui said that industrial output growth is “a bright spot for the Chinese economy.” He noted that the “equipment and high-tech manufacturing sectors” were important drivers of the recorded growth, posting year-on-year gains of 6.6 and 9.4 per cent respectively.

(MUSIC)

RUI: Retail sales grew 4.8 per cent year on year in October according to the NBS, outperforming expectations. 

MARIANN: The improved consumption, which NBS spokesperson Fu Linghui also referred to as a “bright spot” in the Chinese economy, can partly been attributed to Singles Day, sometimes referred to as ‘double 11’—an online shopping event that runs from October into November. Trade-in subsides announced earlier this year are also a likely driver. Sales of household appliances and audio-visual equipment—both covered by direct-to-consumer subsidies—were up 39.2 per cent year on year.   

(MUSIC)

RUI: On 16^th November, the Ministry of Commerce released a ‘dual use’ list, containing items that have both civilian and military applications, that will be subject to export control under China’s new Regulations on Export Control of Dual-use Items. 

MARIANN: The list of around 700 items was released in advance of the new regulation coming into effect on 1^st December. Notable products on the list include certain tungsten and magnesium alloys – both of which are critical materials that China controls the majority of the world’s extraction and processing of. Businesses exporting items included on the ‘dual use’ list will have to apply for export licences in advance, an existing process that the new regulation aims to simplify. While updates to the list may involve a public consultation period, China can also impose temporary export controls on goods when deemed necessary. 

(MUSIC)

RUI: Under the Paris Climate Agreement, countries are required to submit Nationally Determined Contributions every five years, with the next round due by February 2025. These new targets are essential to limiting the global temperature rise to no more than 1.5° Celsius.

MARIANN: Businesses play a central role in translating these targets into reality, but challenges remain. More than 80 per cent of members reported that they rely on decarbonising energy use to achieve carbon neutrality, but limited access to renewable energy is still a widespread issue, with more than 60 per cent of companies reporting difficulties accessing the green energy they need. Dialogue between industry and policymakers therefore remains crucial to advancing a sustainable climate agenda compatible with economic development – in the EU, in China and globally.

RUI: Join us on 27^th November in Beijing for the conference ‘Growing Green – How Does Industry Leverage the Economic Opportunities in National Climate Targets?’. This event, hosted by the European Chamber and the German Embassy, is free for members and open to the public with advance registration.

(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.