This episode contains segments on:
- April official manufacturing and non-manufacturing PMI;
- Q1 industrial profits;
- China’s Law on the Promotion of the Private Economy adopted; and
- China to introduce more measures to boost the economy.
Listeners are also invited to join the launch of the preliminary findings of the Chamber’s Flash Survey on the US-China Trade War on 8th May.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China April official manufacturing and non-manufacturing PMI (NBS)
https://www.stats.gov.cn/sj/zxfb/202504/t20250430_1959521.html
China Q1 industrial profits (NBS)
https://www.stats.gov.cn/sj/zxfb/202504/t20250427_1959477.html
China’s Law on the Promotion of the Private Economy adopted
https://www.news.cn/fortune/20250430/638e5f9c81164746ae486114e020871a/c.html
China to introduce more measures to boost the economy
https://english.www.gov.cn/news/202504/28/content_WS680f7b9ac6d0868f4e8f2266.html
Chamber event: Launch of the preliminary findings of the Chamber’s Flash Survey on the US-China Trade War
Transcript:
XINHE: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
XINHE: This episode was recorded on 30th April 2025.
(MUSIC)
XINHE: Manufacturing activity in China contracted in April after two consecutive months of expansion, as both supply and demand fell sharply since March.
MARIANN: The official manufacturing purchasing manager’s index or PMI stood at 49 points in April, a decrease of 1.5 points compared to the March reading. The 50-point benchmark separates growth from contraction. The April data was the lowest recorded since December 2023. Subindices for production and new orders both entered contraction territory, and new export and import orders both fell sharply, with both indexes dipping to the lowest levels recorded for a year, as tariff and non-tariff trade barriers between the United States and China took effect. The employment subindex also dropped further below the 50-point benchmark, suggesting that manufacturing firms have been cutting headcount at an accelerated pace.
The non-manufacturing PMI showed a more positive picture, even though expansion slowed somewhat compared to March in both the construction and services sectors. Key factors drawing the headline index downwards were falling new orders, with the subindex for new export business hitting a record low for the past year.
(MUSIC)
XINHE: Profits at larger industrial firms in China rose for the first time since last September in the first quarter, following a surge in manufacturing profits in March.
MARIANN: Industrial profits increased 0.8 per cent year-on-year in the first three months of 2025. A breakdown of the three large industrial sectors of mining, manufacturing and utilities showed that March saw a fast rise in manufacturing profits, surging almost 70 per cent compared to the previous data release, which showed the accumulative profits of the January-February period. The surge in manufacturing profits in March could be in part a result of export frontloading to the US, as many exporters rushed to get their shipments there before tariffs would be announced at the beginning of April.
(MUSIC)
XINHE: On 30th April, the Standing Committee of the National People’s Congress passed the private sector promotion law, which will take effect on 20th May.
MARIANN: The draft law was published for public feedback by the Ministry of Justice and the National Development and Reform Commission in October. The final text of the law is yet to be published, but according to state media, it contains 78 articles aimed at providing equal treatment and protection for private businesses.
(MUSIC)
XINHE: At a press conference held on 28th April by several Chinese ministries, senior officials said that China would introduce more measures to bolster economic growth, stabilise employment and meet its 2025 development goals.
MARIANN: According to the officials, upcoming policies will include support for consumption and the real estate sector. Additional measures will focus on five key areas: employment support, foreign trade stability, consumption promotion, effective investment expansion, and fostering a conducive development environment. These include encouraging businesses to maintain staffing levels, assisting export enterprises, boosting service consumption, stimulating automotive sales, boosting private investment, and stabilising capital markets. The People’s Bank of China pledged timely cuts in reserve requirement ratios and interest rates, and the creation of new monetary policy instruments to ensure ample liquidity. Officials expressed confidence in handling external challenges and achieving this year’s economic and social development goals, with ample policy reserves and sufficient policy room.
(MUSIC)
XINHE: The recent escalation of tariffs and trade measures between the US and China has far-reaching implications for all foreign companies operating in China. To better understand the impact and refine our advocacy efforts, the European Chamber conducted an online flash survey among its members from 17th to 27th April 2025.
MARIANN: The findings of the survey indicate that while the majority of the Chamber’s members have not yet been materially impacted by the trade war, the situation has increased uncertainty, and ignited fears over secondary impacts through their customers.
XINHE: Join us on 8th May, when Chamber President Jens Eskelund will introduce the survey’s preliminary findings, providing an overview of the trade war’s impact on the business environment and the near term outlook.
(MUSIC)
MARIANN: Thanks for listening, and don’t forget to tune in again next week.
XINHE: In the meantime, please find useful links in the episode notes.