This episode contains segments on:
- China Jan-Jun 2025 foreign direct investment;
- Measures to encourage foreign-invested enterprises to reinvest in China;
- 2nd EU-China meeting under the Cross-Border Data Flow Communication Mechanism;
- 25th EU-China Summit and Business Roundtable; and
- EU-China Regulatory Exchange on Cosmetics.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.
Read more:
China H1 FDI
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_2bf8686d71e24114b437b24c1b7856d3.html
Measures to encourage FIEs to reinvest in China
https://www.ndrc.gov.cn/xwdt/tzgg/202507/t20250718_1399286.html
2nd EU-China meeting under the Cross-Border Data Flow Communication Mechanism
https://mp.weixin.qq.com/s/o1ZIT6-QP0DXeNpJGK4mXA
25th EU-China Summit
https://www.europeanchamber.com.cn/en/press-releases/3735/
EU-China Regulatory Exchange on Cosmetics
https://mp.weixin.qq.com/s/IiACxx35z5CG-aGQriPxUQ
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 23rd July 2025.
(MUSIC)
RUI: According to data published by China’s Ministry of Commerce on 19th July, in the first half of the year the country’s actual use of foreign direct investment continued to trend downward compared to the same period last year.
MARIANN: The total value of utilised FDI was over 423 billion yuan in the January-June period, 15.2 per cent lower than in the first half of last year. This was the sharpest year-on-year decline recorded since February. Nearly three quarters of the total value of FDI was utilised in the services sector, with the remaining one quarter channelled into manufacturing.
(MUSIC)
RUI: On 18th July, China’s National Development and Reform Commission, Ministry of Finance and Ministry of Commerce, along with four other government branches, jointly issued a notice detailing measures aimed at encouraging foreign-invested enterprises in China to reinvest their profits locally.
MARIANN: Support measures listed in the notice include flexible long-term lease of industrial land and other arrangements to reduce land use costs, tax support policies and streamlined processes for newly established entities. The notice also urges the relevant authorities to strengthen the monitoring of reinvestments by foreign-invested firms to better assess their contribution to China’s economic and social development.
For the past two consecutive years the European Chamber’s Business Confidence Survey found that three quarters of respondents plan to reinvest some of their profits earned in the Chinese mainland. At the same time, the value many Chamber members are reinvesting is trending downwards, with 37 per cent of respondents reporting in 2025 that they are planning to invest less than their historical average.
(MUSIC)
RUI: On 17th July, the EU and China held its second meeting under the framework of their bilateral Cross-Border Data Flow Communication Mechanism in Brussels. A key takeaway from the meeting was that the two sides agreed to set up a working group to carry out cooperation on cross-border data transfers in the automotive segment.
MARIANN: The meeting was co-chaired by Sabine Weyand, director general of the Directorate General for Trade of the European Commission, and Wang Jingtao, vice minister of the Cyberspace Administration of China, who launched the mechanism in August 2024. The main goal of the mechanism is to facilitate cross-border transfers of non-personal data for European businesses while ensuring their compliance with Chinese data regulations.
The Chamber’s Business Confidence Survey 2025 showed that the majority of Chamber members are no longer dissatisfied with China’s cross-border data regulations. This was largely due to the improvements seen with the release of the final version of the Cyberspace Administration of China’s Provisions on Regulating and Promoting Cross-border Data Flows in March 2024, which reduced administrative burdens associated with cross-border data transfers. However, one key outstanding issue that continues to pose challenges for companies is that the scope of what constitutes ‘important data’ has still not been clarified.
(MUSIC)
RUI: The 25th EU-China Summit will take place in Beijing on 24th July 2025, during which it is expected that President of the European Council, António Costa, and President of the European Commission, Ursula von der Leyen, will meet with Chinese President Xi Jinping and Chinese Premier Li Qiang. On the margins of the summit, a business roundtable hosted by the Chinese Ministry of Commerce will take place on the same day in Beijing. The roundtable will comprise two sessions: one with EU and Chinese CEOs, and one with EU and Chinese state leaders. European Chamber President Jens Eskelund will speak at the latter session.
MARIANN: It is positive that industry and government representatives from the EU and China are meeting to discuss the two sides’ trade and investment relationship, which has come under increased scrutiny in recent years. The Chamber looks forward to engaging in frank and candid discussions that will pave the way for further talks, including at the working level, with the aim of improving China’s business environment for its member companies.
(MUSIC)
RUI: On 16th July, the Delegation of the European Union to China and the National Medical Products Administration co-organised an event in Beijing with the support of the European Chamber’s Cosmetics Working Group and Cosmetics Europe. The key topic of discussion was the cosmetics regulatory supervision systems in the EU and China.
MARIANN: The event gathered nearly 50 senior representatives from the National Medical Products Administration and other relevant regulatory institutions, as well as industry representatives. Participants engaged in in-depth exchanges on critical issues pertaining to the alignment and differences between EU and Chinese regulatory systems.
RUI: On the same day, the chair and vice chairs of the Chamber’s Cosmetics Working Group attended an exclusive meeting with Xu Jinghe, Deputy Commissioner of the National Medical Products Administration, or NMPA, and Director General Li Fang of the NMPA Cosmetics Supervision Department. The Cosmetics Working Group briefed the NMPA on current industry concerns and expressed its aspiration to participate more actively in future regulatory formulation, establishment and implementation processes, with the goal of fostering deeper EU-China cooperation in the sector.
(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.