This episode contains segments on:

• China Jan-Jun industrial profits;
• China’s tax revenue during the 14^th five-year plan;
• AI global governance action plan; and
• EU China Summit.

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Read more:

Industrial profits

https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250727_1960504.html

https://www.stats.gov.cn/sj/zxfbhjd/202507/t20250727_1960503.html

Government revenue

https://www.chinatax.gov.cn/chinatax/n810219/n810724/c5242033/content.html

https://gks.mof.gov.cn/tongjishuju/202507/t20250725_3968635.htm

AI Governance

https://www.gov.cn/yaowen/liebiao/202507/content_7033929.htm

EU China summit

https://www.consilium.europa.eu/en/meetings/international-summit/2025/07/24/

https://ec.europa.eu/commission/presscorner/detail/en/ac_25_1912

https://www.mfa.gov.cn/zyxw/202507/t20250724_11676247.shtml

https://ec.europa.eu/commission/presscorner/detail/en/statement_25_1902

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 30^th July 2025.

(MUSIC)

RUI: The drop in China’s industrial profits accelerated in June, resulting in a 1.8 per cent year-on-year decline recorded for the first half of the year, according to data released by the National Bureau of Statistics on 27^th July.

MARIANN: This is the steepest fall recorded so far this year. The decline comes alongside deepening producer price deflation, driven by overcapacity and low domestic demand. Yu Weining, a statistician at the statistics bureau commenting on the data noted the need for China to further strengthen “internal circulation” amidst a “complicated external environment.” While the underlying problems impacting China’s economy are widely recognised and stimulus measures have been put in place, more time is needed before it will be clear how successful these remedies have been.

(MUSIC)

RUI: China’s tax revenue during the 14^th five-year plan period is estimated to total over 155 trillion Chinese yuan, according to Commissioner of the State Taxation Administration Hu Jinglin speaking at a press conference held by the State Council Information Office on 28^th July.

MARIANN: Discussing the estimated figures for the period between 2021 and the end of 2025, Commissioner Hu Jinglin noted that tax revenues would account for about 80 per cent of the government’s total revenue over the period. Of the estimated total of 155 trillion Chinese yuan, more than 85 trillion is expected to come from conventional taxes, while a further 70 trillion will come from social insurance payments and land transfer proceeds. He suggested that relatively strong tax revenues indicate positive performance of the Chinese economy over the period. The press conference follows the release of June fiscal revenue data by the Ministry of Finance on 25^th July, which showed that tax revenue fell 1.2 per cent in the first half of the year, while non-tax revenue grew 3.7 per cent, resulting in a 0.3 per cent decline in fiscal revenue for the first half of 2025.  

(MUSIC)

RUI: On 26^th July, China released a plan to approach global artificial intelligence—or AI—governance.

MARIANN: The release of the plan coincided with the opening of the World Artificial Intelligence Conference in Shanghai, where Premier Li Qiang spoke, expressing the need to form a global AI governance framework as soon as possible. The move comes as China aims to offer an alternative model to the United States, which is working to counter Chinese influence in AI. The plan calls for a special focus on AI in the Global South and was supplemented by a call by China to establish a global AI cooperation body headquartered in Shanghai.

(MUSIC)

RUI: On 24^th July, President of the European Council António Costa, and President of the European Commission Ursula von der Leyen met with President Xi Jinping and Premier Li Qiang for the 25^th EU-China summit in Beijing.

MARIANN:  While the summit marked the 50^th anniversary of the establishment of EU-China relations, expectations going into the meeting were low amid heightened tensions over issues including the EU-China trade imbalance and China’s perceived support for Russia’s war in Ukraine. The summit, however, saw progress on rare earth export controls, with an agreement reached for a new mechanism to immediately check for supply chain bottlenecks. The EU and China also released a joint press statement on climate, with both sides emphasising the need to demonstrate leadership and uphold the Paris Agreement.

(MUSIC)

RUI: On the margins of the EU-China summit, China’s Ministry of Commerce hosted a business leaders symposium, attended by European Commission President Ursula von der Leyen and Chinese Premier Li Qiang.

MARIANN: During this event, European Chamber President Jens Eskelund delivered a keynote address. In his remarks, he noted that despite the significant value the relationship has generated for both Europe and China, imbalances in the EU-China trade relationship need to be addressed. He further noted that European businesses in China continue to face long-standing regulatory and market access restrictions, with a record high 63 per cent of European Chamber members reporting having missed business opportunities as a result.

RUI: If you have not already, follow the European Chamber’s official WeChat account to receive updates on the Chamber’s advocacy activities as they happen.

(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.