This episode contains segments on:
- China January-May total use of foreign direct investment;
- China January-May fiscal revenue;
- Tax Reporting for internet platform enterprises; and
- Curbing “involution-style” competition.
The May/June 2025 edition of the Chamber’s bimonthly magazine, EURObiz, is available to download from the Chamber’s website.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China total use of FDI, January-May 2025 (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_10c6c4fd380c403e944deac872447b6e.html
http://english.scio.gov.cn/pressroom/2025-06/23/content_117942050.html
Fiscal revenue
https://gks.mof.gov.cn/tongjishuju/202506/t20250620_3966204.htm
Tax Reporting for Internet Platform Enterprises
https://www.gov.cn/yaowen/liebiao/202506/content_7029056.htm
https://english.news.cn/20250623/cfb6110650a4456cab826ec7db15bbb7/c.html
Curbing “involution-style” competition
https://www.chinanews.com.cn/gn/2025/06-23/10436434.shtml
EURObiz Issue 86 (May/June 2025)
https://www.europeanchamber.com.cn/en/eurobiz-archive-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 25th June 2025.
(MUSIC)
RUI: Data released by the Ministry of Commerce on 20th June showed that the actual use of foreign direct investment—or FDI—in China continued to decline year-on-year, now down 13.2 per cent for the January-May 2025 period.
MARIANN: The ongoing decline is significant, given that FDI levels for the same five months last year were already down nearly 30 per cent year-on-year from 2023. Total reported FDI for the year now stands 358.19 billion Chinese yuan, only slightly above 2020 levels which were depressed amidst global uncertainty caused by the COVID-19 pandemic. The majority of new investment—259.64 billion Chinese yuan—came from service sector investments, while the rest—91.52 billion Chinese yuan— was made up of manufacturing investments. The most invested sectors were e-commerce services, aerospace equipment manufacturing and chemical pharmaceuticals manufacturing. The decline in FDI is evident among European businesses as well. According to the Chamber’s Business Confidence Survey 2025, China is only a top destination for future investments for 12 per cent of respondents, a record low since the question was first asked in 2012.
(MUSIC)
RUI: China’s fiscal revenue fell 0.3 per cent year on year for the first five months of 2025, according to data released by the Ministry of Finance on 20th June.
MARIANN: The decline, made up of a 1.3 per cent drop in tax revenue and a 6.2 per cent increase in non-tax revenue, comes as the Chinese economy continues to suffer in the face of US-China trade tensions. The January to May period saw an 11.9 per cent year-on-year decline in state land-sale revenue, indicative of ongoing challenges in China’s property sector. While additional monetary stimulus measures were announced in early May, it is likely that more time is needed before any impact will be seen.
RUI: On 23rd June, the State Council released the Provisions on Tax-Related Information Reporting by Internet Platform Enterprises, in a move aimed at increasing tax revenue from operators that sell through online platforms.
MARIANN: The new rules come in tandem with a drive to increase tax enforcement. The Provisions will require internet platform operators to submit information on operators that use their platforms, with the stated aim of advancing fair competition by reducing tax avoidance. In a press conference, a spokesperson for the State Taxation Administration emphasised that the Provisions were not intended to increase the tax burden but only aimed at ensuring operators currently underpaying tax would be forced to pay at normal levels.
(MUSIC)
RUI: At a press conference on 23rd June, Huang Haihua, a spokesperson for the Legislative Affairs Commission of the National People’s Congress Standing Committee, announced that a second session would be held this week to deliberate an updated draft of the Law Against Unfair Competition, which now includes specific provisions to prevent ‘involution-style’ or rat race competition.
MARIANN: The updated draft law is among the latest measures intended to address ‘involution’ in China’s economy. Huang noted that the second revision of the draft law was updated based on stakeholder feedback to include measures to rectify ‘involution-style’ competition in the economy, in addition to a specific set of measures aimed at ‘involution-style competition’ on online platforms. The law also takes aim at ‘confusion-based unfair competition’ on online platforms, such as when operators intentionally use trademarks for other products as keywords to confuse consumers.
(MUSIC)
RUI: The May/June edition of the Chamber’s bimonthly magazine—EURObiz—is now available.
MARIANN: This edition focuses on how businesses can thrive in China’s evolving market, particularly in an economy with a notoriously low consumption rate. It contains articles on intellectual property and data protection in China’s ecommerce market, China’s 2025 Action Plan for Stabilising Foreign Investment, how European brands can rethink how they reach Chinese consumers and an update on China’s post-COVID travel recovery.
RUI: You can download the magazine from the Chamber’s website for free.
(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.