This episode contains segments on:
- Action Plan to Boost Consumption;
- Utilisation of foreign direct investment in January and February;
- Macroeconomic indicators in January and February; and
- Statement of the G7 Foreign Ministers’ meeting.
The Chamber launched a new member service The EU China Business Digest.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China’s Utilisation of FDI, January – February (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_af5ab8295a0a4f9a9561d05232fe23d1.html
China Macroeconomic Indicators, January-February (NBS)
https://www.stats.gov.cn/sj/zxfb/202503/t20250317_1959012.html
https://www.stats.gov.cn/sj/zxfb/202503/t20250317_1959014.html
Action Plan to Boost Consumption
https://english.www.gov.cn/policies/latestreleases/202503/16/content_WS67d6b21bc6d0868f4e8f0da0.html
Statement of the G7 Foreign Ministers’ Meeting in Charlevoix
https://www.state.gov/statement-of-the-g7-foreign-ministers-meeting-in-charlevoix/
New European Chamber member service: The EU-China Business Digest
https://www.europeanchamber.com.cn/en/policy-updates-and-analysis/11301/the_eu_china_business_digest
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 19th March 2025.
(MUSIC)
RUI: The actual use of foreign direct investment or FDI in China dropped significantly in the first two months of 2025 compared to a year ago, according to data released by China’s Ministry of Commerce on 14th March.
MARIANN: The total amount of utilised FDI surpassed 171 billion yuan in the January-February period, which was a 20.4 per cent drop from a year ago. The decrease came on top of a similar fall last year, which makes the comparison especially stark between the current total and that recorded two years ago: in the first two months of 2023, following China’s reopening after its COVID-related lockdowns were lifted, the total use of FDI was 268 billion yuan, over one and a half times more than the total in the same period this year.
(MUSIC)
RUI: Macroeconomic data released by the National Bureau of Statistics on 17th March showed that industrial production and retail sales both increased at a relatively fast pace in the first two months of 2025 compared to a year ago.
MARIANN: Production at larger industrial firms expanded 5.9 per cent year-on-year. Out of the three large industrial segments of mining, manufacturing and utilities, production at manufacturing grew at the fastest rate at 6.9 per cent year-on-year. The total value of retail sales rose 4 per cent compared to the same period last year, slightly above the pace of growth recorded in the last two months of 2024. The increase in catering sales was the highest recorded since June.
(MUSIC)
RUI: On 16th March, Central Committee of the Communist Party of China and the State Council jointly issued an Action Plan for Boosting Consumption, containing eight sections and thirty items.
MARIANN: The plan came only days after the conclusion of this year’s Two Sessions, during which the task of addressing weak domestic demand was made a priority. While the plan maintains significant continuity with previously announced measures, at a press conference held on 17th March, the National Development and Reform Commission highlighted that it breaks with the pattern of focusing only on the supply side and also provides support for the demand side by targeting an increase in household incomes while easing financial burdens on consumers. This is something that the European Chamber has long been advocating for, as supply-side policies have been a contributor to the significant trade imbalances China has accumulated with its key trade partners, including the European Union.
(MUSIC)
RUI: Top diplomats from the Group of 7, or G7, met in Charlevoix Canada on 13th and 14th March to discuss key geopolitical and trade issues. In a statement released after the meeting, they listed several concerns related to China, including some about the country’s trade practices.
MARIANN: With regard to trade, they voiced worries over China’s non-market policies and practices, as these are causing overcapacity and market distortions. G7 members also urged China to avoid implementing export control measures that might result in major supply chain disruptions. They emphasised that their intention is not to harm China or impede its economic growth. On the contrary, the document stressed that a growing China that adheres to international rules and norms would be in the global interest. The statement was signed by the High Representative of the European Union and the foreign ministers of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
(MUSIC)
RUI: On 14th March, the European Chamber launched a new service to its members. The EU-China Business Digest is a weekly update of economic data, policies, key political events and reports that are relevant to European businesses operating in China, with analysis by the European Chamber.
MARIANN: Issues will be released on Fridays, and can be accessed via the Chamber’s website or WeChat account. After the first five issues, which are publicly available, this service will be accessible to Chamber members only.
RUI: We invite you to keep an eye out for new issues on Fridays, and if you are not our member yet, find out how you can become one to keep your access to our services.
(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.