This episode contains segments on:
- Price indices in February;
- Foreign trade data in January and February;
- Secretary General Adam Dunnett joined CGTN’s live coverage of ‘Two Sessions’; and
- Caixin China General Service PMI.
Listeners are also invited to join the event ‘Chat with Joerg Wuttke: What to Expect in Trump 2.0’ online on 17th March.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China February price indices (NBS)
https://www.stats.gov.cn/sj/sjjd/202503/t20250309_1958913.html
China January-February foreign trade data (GACC)
http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6394756/index.html
Caixin China General Services PMI
https://www.pmi.spglobal.com/Public/Home/PressRelease/db9367f740f2481ab5928dbecca2474a
Chamber event: Chat with Joerg Wuttke—What to Expect in Trump 2.0
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 12th March 2025.
(MUSIC)
RUI: Deflationary pressures in China intensified, with consumer prices falling year-on-year in February, on top of producer prices entering their 29th consecutive month of decline.
MARIANN: According to official data published by the National Bureau of Statistics on 9th March, producer prices dropped 2.2 per cent compared to a year ago. While still significant, the rate of decline was the lowest recorded since August last year. Consumer prices decreased 0.7 per cent year on year, and for the first time since January 2024. The statistics office highlighted that the Chinese New Year holiday had a negative impact on both indices. Producer prices fell as the holiday period—including the weeks before and after the holiday—is an off-season for industrial production. As for consumer prices, the moving date of the holiday resulted in a higher base figure from last year, dragging the index below zero. According to the bureau’s calculations, if seasonal distortions are discounted, the index actually edged up 0.1 per cent year-on-year.
(MUSIC)
RUI: China’s export growth slowed considerably in the first two months of the year, as the first round of additional US tariffs on China’s exports took effect.
MARIANN: Data released by China’s customs authority on 7th March showed that in US dollar terms the total value of the country’s exports rose 2.3 per cent year-on-year in the January-February period. This was the slowest pace of growth since last April. It followed a surge in exports in December, when Chinese exporters were frontloading shipments to the US to avoid higher tariff rates. The total value of imports, meanwhile, fell 8.4 per cent year-on-year, which was the sharpest decline recorded since July 2023. As a result, China’s total trade surplus reached 170 billion US dollars in the first two months of the year. The European Union was China’s second largest trade partner after the Association of Southeast Asian Nations. While China’s exports to the EU increased slightly in the January-February period, its imports from the bloc dropped considerably compared to a year ago.
(MUSIC)
RUI: China’s top annual political event, the ‘Two Sessions’ concluded on 11th March, with the National People’s Congress approving all documents submitted for review at its closing meeting.
MARIANN: The European Chamber’s Secretary General, Adam Dunnett joined CGTN’s live coverage of the closing event, commenting on the significance of the decisions made at this year’s Two Sessions for foreign-invested enterprises operating in China.
ADAM: We watch it very closely and we look forward to contributing to the goals ahead. European companies are looking at opportunities here, but first and foremost, they need to see a market opportunity. The 5% growth that you just talked about we experienced last year. That gives you a good indication of how the economy is growing at a very high-level macro sense. But for individual companies and sectors, what they care about is profitability in their sector. And this other buzzword that we’ve been talking about ‘evolution’ or ‘Nei Juan’ in China. A lot of companies are being very cautious right now, because they want to ensure that if they make the investment into new products or technologies that at the end of the day, they’re gonna be able to sell these products at a price profit, right? They are profit-driven companies. It’s normal. Because there’s a lack of demand in the market. For a lot of them, what they are looking at is not simply the high-level statements and policies, they’re actually looking at what’s happening in the market for themselves.
(MUSIC)
RUI: Activity in China’s services sector continued to expand in February, as demand picked up, leading employment levels to stabilise, according to a private survey conducted by Caixin and S&P Global.
MARIANN: The Caixin services purchasing managers’ index or PMI stood at 51.4 points in February, remaining above the 50-point mark separating growth from contraction for the 26th consecutive month. Both supply and demand continued to increase, with the subindex for new export orders reaching a three-month high. The subindex for employment climbed above the 50-point benchmark as some service providers increased their staffing levels to meet higher demand. The gauge for input costs dropped for the first time in almost five years, leading some service companies to decrease their prices to stimulate sales. Service firms surveyed were generally upbeat about their one-year outlook.
(MUSIC)
RUI: Since Donald Trump’s inauguration as US President on 20th January, a wave of policy adjustments have been underway, impacting the US economy and its global relationships. Trump’s inaugural address echoed themes from his first term, promising an “America First” vision and a national renewal. As expected, he already slapped tariffs on a number of the US’ trade partners, including Canada, Mexico and China.
MARIANN: Join us on 17th March, when Carlo D’Andrea, Vice President of the European Chamber and Chair of the Chamber’s Shanghai Chapter will sit down with Joerg Wuttke, Partner at Albright Stonebridge Group and President Emeritus of the European Chamber to discuss what to expect from the second Trump administration.
RUI: Drawing on his extensive experience, Mr Wuttke will share his insights on what potential consequences the US’ trade policies might have on Chinese economic growth and what moves Trump is likely to make towards Europe.
(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.