This episode contains segments on:

• China January-July utilised FDI;
• China January-July industrial profits;
• Opinions on Advancing the Green and Low-Carbon Transition and Strengthening the Building of the National Carbon Market; and
• China January-July online retail sales.

Listeners are also welcomed to attend Sustainable Supply Chain Conference in Shanghai on 4th September.

Contact:

We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.

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Read more:

China January-July utilised FDI (MOFCOM)

https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_7f4785c9b4cf4ea7ae676dbc1159e242.html

China January-July industrial profits (NBS)

https://www.stats.gov.cn/sj/zxfb/202508/t20250827_1960884.html

https://www.stats.gov.cn/sj/sjjd/202508/t20250827_1960883.html

Opinions on Advancing the Green and Low-Carbon Transition and Strengthening the Building of the National Carbon Market

https://www.gov.cn/zhengce/202508/content_7037717.htm

China January-July online retail sales

https://www.mofcom.gov.cn/xwfb/sjfzrfb/art/2025/art_6a708140daa94f94bab4845cafba7984.html

European Chamber event: Sustainable Supply Chain Conference

https://www.europeanchamber.com.cn/en/upcoming-events/28050/Sustainable_Supply_Chain_Conference_Crafting_Resilient_and_Circular_Green_Supply_Chains_for_a_Connected_World

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 27^th August 2025.

(MUSIC)

XINHE: According to data released by China’s Ministry of Commerce on 22^nd August, the country’s actual use of foreign direct investment declined in the first seven months of 2025 compared to the same period last year.

MARIANN: In the January-July period, China’s utilised FDI was 467 billion yuan. This was 13.4 per cent lower than in the first seven months of 2024. However, the pace of decline slowed from that recorded in the first half of this year. Nearly three quarters of the total amount of FDI was used in the services sector, with the rest channelled into manufacturing.

(MUSIC)

XINHE: Data published by the National Bureau of Statistics on 27^th August showed that profits at larger industrial firms declined in the first seven months of the year compared to the same period last year.

MARIANN:  At 1.7 per cent, the pace of decline in industrial profits was slightly slower than in the first half of the year. The fall in the headline figure was largely due to a steep drop in mining profits, with the other two main industrial sectors of manufacturing and utilities still recording profit increases. In fact, the pace of growth in manufacturing profits accelerated from June, to 6.8 per cent in July, which helped narrow the overall decline in industrial profits. This was largely due to a rapid rebound in the raw material manufacturing industry, which went from a 5 per cent year-on-year decline in profits in June to a nearly 37 per cent increase in July. Meanwhile, despite ongoing measures to boost consumption, the consumer goods manufacturing industry continued to make losses in July, albeit the fall in profits narrowed from the previous month.

(MUSIC)

XINHE: On 25^th August, the Communist Party of China’s Central Committee and the State Council jointly issued a document containing 17 points on promoting the country’s green transition.

MARIANN:  The Opinions on Advancing the Green and Low-Carbon Transition and Strengthening the Building of the National Carbon Market sets out a list of main objectives. These include a 2027 deadline for the national carbon emissions trading market to cover the main emitting industrial sectors and for the national voluntary greenhouse gas emission reduction trading market to achieve full coverage of all key areas. The document also sets out development goals for the national carbon emission and national voluntary greenhouse gas emission reduction trading markets, including that the latter should be aligned with international standards by 2030.  

(MUSIC)

XINHE: On 22^nd August, China’s Ministry of Commerce said that the country’s e-commerce sector grew steadily in the first seven months of the year.

MARIANN: The ministry cited data from the statistics bureau saying that in the January-July period, the total value of online retail sales increased 9.2 per cent year-on-year, with the sales of personal computers, smartwatches and other smart wearables surging almost 30 per cent from the previous year. Online services sales, including in the areas of tourism, catering, culture and entertainment also increased significantly.  

(MUSIC)

XINHE: For European companies operating in China, a rapidly evolving regulatory environment increases compliance complexities. New regulations, including the European Union’s Corporate Sustainability Due Diligence Directive, China’s Circular Economy Promotion Law, and the 14th Five-Year Plan for Circular Economy Development, are raising the bar for environmental, social, and governance practices.

MARIANN:  The European Chamber’s Shanghai Chapter is hosting a conference dedicated to sustainable supply chains to offer practical strategies to build supply chains that prioritise responsibility, resilience, and efficiency. 

XINHE: Join us in Shanghai on 4^th September to find out how innovative sustainable finance solutions can accelerate investments and green transformation and gain insights into Shanghai’s evolving policy landscape designed to promote carbon emission reduction across corporate supply chains.

(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.