This episode contains segments on:
- July Consumer and Producer Price Indices;
- US and China extended tariff pause;
- July foreign trade data; and
- Implementation guidelines for Private Economy Promotion Law.
European Chamber’s 9th Sustainable Business Awards are open for applications until 14th September. Join the online information session on 28th August to learn more.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
CPI and PPI
https://www.stats.gov.cn/sj/zxfbhjd/202508/t20250809_1960634.html
https://www.stats.gov.cn/sj/zxfbhjd/202508/t20250809_1960635.html
https://www.stats.gov.cn/sj/zxfbhjd/202508/t20250809_1960633.html
US-China tariffs
https://www.news.cn/20250812/51f8bbe50ab84e1ab1707fa1caeedff6/c.html
https://www.gov.cn/zhengce/zhengceku/202508/content_7036104.htm
Foreign trade data
http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6661554/index.html
http://www.customs.gov.cn/customs/302249/zfxxgk/2799825/302274/302275/6661684/index.html
Law on Promoting the Private Economy implementation guidelines
https://www.court.gov.cn/zixun/xiangqing/473191.html
Sustainable Business Awards Information Session
https://www.europeanchamber.com.cn/en/upcoming-events/28130
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 13th August 2025.
(MUSIC)
RUI: Data on July consumer and producer prices, released on 9th August by the National Bureau of Statistics, further fuelled concerns over the negative economic impact that persistent deflation is having on China’s economy.
MARIANN: July’s consumer price index indicated no change year-on-year, while the producer price index posted a 3.6 per cent year-on-year decline. The latter marks the 34th consecutive month of year-on-year decreases in producer prices, furthering concerns about deflation. While an official interpretation of the data suggested that this was due to seasonal factors and international trade uncertainty, the former would not explain the significant year-on-year decline. The data suggests that government measures to reduce overcapacity and reign in unfair competition have not yet translated into measurable results for the Chinese economy.
(MUSIC)
RUI: On 11th August US President Donald Trump signed a last-minute executive order extending the suspension of “heightened tariffs” on Chinese goods for an additional 90 days. China announced an extension of its suspension of additional tariffs on US goods shortly after.
MARIANN: The move—which comes just before the 90-day tariff pause was set to expire—follows US-China trade talks that took place in Stockholm last month. The negotiations ended with mixed messaging, with the Chinese side suggesting that an agreement to extend the pause had been reached while the US side insisted that nothing could be agreed without Donald Trump’s approval. Monday’s executive order and the resulting Chinese announcement mean that the current 10 per cent reciprocal tariff rate will stay in place until 10th November. Additional tariffs, including the US’s 20 per cent tariff intended to punish China for its alleged involvement in the export of fentanyl and fentanyl precursor chemicals to the US, as well as tariffs on some goods that were in place before Donald Trump’s second term started this January, will continue to apply above the baseline 10 per cent. In addition, China will continue the suspension of some non-tariff measures, including some export controls. While the extended pause indicates a lack of appetite from both sides to return to the high tariff levels seen in April, the 90-day timeframe does not provide businesses with enough certainty to make long-term plans.
(MUSIC)
RUI: On 7th August the General Administration of Customs released China’s foreign trade data for July, recording growth in both exports and imports.
MARIANN: Exports grew at the highest year-on-year rate since April at 7.2 per cent, while imports jumped to the highest year-on-year level since July 2024 at 4.1 per cent. The growth came during the last full month of the first 90-day tariff pause between the United States and China, which was set to end on 12th August prior to the last-minute extension. The July trade data represents purchasing decisions made early in the tariff pause, if not before. Given the uncertainty about whether the pause would be extended, many businesses seem to have frontloaded exports in anticipation of tariff levels rising after 12th August.
(MUSIC)
RUI: On 8th August, China’s Supreme Court issued the implementation guidelines for the Law on Promoting the Private Economy, further clarifying how the new law should be implemented by courts.
MARIANN: China’s Law on Promoting the Private Economy came into effect on 20th May 2025, and is designed to provide greater legal protections for private businesses. While neither the law nor its implementing guidelines introduce any major reforms, they do aim to ensure that the existing rights of private businesses are better protected. The guidelines include specific provisions for courts to handle disputes between private businesses and local governments, with the intention to clamp down on a variety of behaviours that hurt the business environment. It remains to be seen how effective the law will be, given that, in many cases, private businesses will have to take cases against local governments to court—which would potentially damage their relationships with important stakeholders—before they could expect to see a resolution.
(MUSIC)
RUI: This year, the European Chamber will host the 9th Sustainable Business Awards, designed to advance sustainability awareness and promote responsible business models.
MARIANN: This year’s awards include 11 unique categories, covering a variety of areas like leadership, supply chain development and talent empowerment. Companies can nominate themselves until 14th September by filling out an application form available on the Chamber’s website.
RUI: To learn more, join us for an online information session on 28th August during which further details about the application process will be shared.
(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.