This episode contains segments on:
- Annual Government Work Report;
- Official Purchasing Manufacturing Index (PMI) in February;
- European Commission to simplify rules on sustainability; and
- The United States raised additional tariffs on Chinese imports.
Listeners are also invited to join the townhall briefing on 13th March in Beijing or online, during which President Jens Eskelund will share his key takeaways from the 2025 European tour.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China official PMI, February (NBS)
https://www.stats.gov.cn/sj/zxfb/202503/t20250301_1958837.html
European Commission’s first Omnibus package to simplify rules on sustainability
https://ec.europa.eu/commission/presscorner/detail/en/ip_25_614
European Chamber event: Townhall meeting by the President on the European Tour 2025
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 5th March 2025.
(MUSIC)
RUI: At the annual meeting of the National People’s Congress, similar to last year, China set the target for economic growth in 2025 at around 5 per cent and pledged to further deepen comprehensive reform and expand high-standard opening up.
MARIANN: In his speech introducing the annual government work report, Premier Li Qiang said that China would encourage foreign investment. Specifically, he mentioned opening up sectors related to the internet and culture, and expanding trials to open other sectors including telecommunications, medical services and education. He also reiterated the pledge to ensure national treatment for foreign-invested enterprises in the areas of access to production factors, license applications, standards setting and government procurement. He also vowed that China will provide better services for foreign professionals.
Premier Li also used his speech to acknowledge difficulties with China’s economic recovery, and highlighted areas in which efforts should be made to support growth. These include boosting domestic consumption, addressing local government debt and restoring stability to the real estate market.
The European Chamber will continue to work with Chinese stakeholders and offer constructive recommendations on where concrete steps are needed to turn these pledges into the kind of actions that can improve business confidence among foreign companies.
(MUSIC)
RUI: According to official data released by the National Bureau of Statistics on 1st March, manufacturing activity in China expanded in February.
MARIANN: The manufacturing purchasing managers’ index or PMI stood at 50.2 points, which was only slightly above the 50-point benchmark separating growth from contraction. It was, however, the highest level recorded since last November. A breakdown by company size indicated that it was a strong rebound in activity at large manufacturing firms that drove the headline figure up, as the subindices for medium- and small-sized companies both sank further below the benchmark.
Supply and demand both expanded but production increased more – the statistics bureau attributed this to a fast recovery in activity after the Chinese New Year holiday. The subindex for employment in the manufacturing sector improved to the highest level seen over the past twelve months, but still remained well below the benchmark.
The non-manufacturing PMI rose further above 50 points in February, but continued to indicate limited expansion, which was largely driven by a sudden increase in construction activity. Services activity meanwhile stagnated, as demand for services dropped sharply in February.
(MUSIC)
RUI: On 26th February, the European Commission announced a new proposal package aimed at reducing administrative burdens in connection with sustainability reporting and due diligence.
MARIANN: This first series of the so-called ‘Omnibus’ packages includes amendments to the Corporate Sustainability Reporting Directive or CSRD, the Corporate Sustainability Due Diligence Directive, or CSDDD, the Carbon Adjustment Mechanism or CBAM, and the InvestEu Regulation. The aim is to balance the EU’s sustainability efforts with the goal of strengthening EU companies’ competitiveness. Key points in the package include a proposal to postpone the application of CSRD and CSDDD reporting requirements. The Commission highlighted that the proposals would especially benefit small and medium-sized companies and would lead to significant savings in annual administrative costs.
(MUSIC)
RUI: On 3rd March, US President Donald Trump raised tariffs on Chinese imports by an additional ten per cent, bringing the total to twenty per cent. China responded with several countermeasures, including additional tariffs on several US agricultural products and restrictions on US companies.
MARIANN: The US hiked tariffs on Chinese imports as it deemed the country uncooperative with regard to the US’ efforts at stopping fentanyl and other illegal drug imports. China immediately hit back by announcing additional tariffs on selected US agricultural imports—including soybeans, beef, pork, chicken and dairy products—ranging from 10 to 15 per cent. Furthermore, China added ten US companies to the Unreliable Entity List, and 15 entities to the Export Control List. All impacted companies have connections to the US defence sector.
(MUSIC)
RUI: From 3rd to 7th of February, a European Chamber delegation composed of 27 industry representatives and led by President Jens Eskelund travelled to Brussels for the Chamber’s first European Tour since the 2024 European Union elections.
MARIANN: During the tour, delegates shared industry insights on the policy and business environment in China with both high- and working-level counterparts. The group met with the European Commission, the European Parliament, the Council of the EU and the European Council, as well as industry, think tanks and business associations. After the Brussels-leg of the tour, President Eskelund and a few delegates travelled to Rome, Paris and Berlin. In total 87 meetings took place in 12 days.
RUI: Join us on 13th March for a member-exclusive townhall briefing, during which President Jens Eskelund will share his key takeaways from the tour including his perceptions of the current thinking in Europe about the EU-China relationship.
(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.