This episode contains segments on:
- China’s April foreign trade data;
- April official purchasing managers’ index;
- April Consumer Price Index and Producer Price Index;
- State Council executive meeting;
- Trump’s visit to China;
- European Chamber flash survey results on the Impact of the Middle East Conflict on European Business in China
Also, listeners are invited to join the European Chamber’s annual Business Confidence Survey launch on 27th May.
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Read more:
April foreign trade data:
http://www.customs.gov.cn/customs/2026-05/09/article_2026050910092373174.html
April PMI:
https://www.stats.gov.cn/sj/zxfb/202604/t20260430_1963473.html
https://www.stats.gov.cn/english/PressRelease/202605/t20260506_1963595.html
April CPI:
https://www.stats.gov.cn/sj/zxfb/202605/t20260511_1963659.html
https://www.stats.gov.cn/sj/sjjd/202605/t20260511_1963657.html
April PPI:
https://www.stats.gov.cn/sj/zxfb/202605/t20260511_1963658.html
https://english.news.cn/20260511/8fc7920a97e641f696a2f8f16d4ebf89/c.html
State Council executive meeting:
https://english.www.gov.cn/news/202605/09/content_WS69ff2ff4c6d00ca5f9a0ad96.html
European Chamber Flash Survey: Impact of the Middle East Conflict on European Business in China
https://www.europeanchamber.com.cn/en/press-releases/3788/
Business Confidence Survey 2026 Launch:
https://www.europeanchamber.com.cn/en/upcoming-events/29246
Transcript:
RUI: Hello and welcome to China ShortCuts,
XINHE: the European Chamber’s weekly catch-up on China’s business landscape.
RUI: This episode was recorded on 13th May 2026.
(Music)
Rui: According to data released by the General Administration of Customs on 9th May, China exported 359.4 billion US dollars’ worth of goods to the rest of the world last month, up 14.1 per cent compared to a year prior. The value of imports to the country also grew over the same time period, with China importing 274.6 billion US dollars’ worth of goods in April, an increase of 25.3 per cent year on year.
Xinhe: As a result, China recorded a trade surplus with the rest of the world of 84.8 billion US dollars over the period.
(Music)
Xinhe: China’s official manufacturing purchasing managers’ index, or PMI, continued to expand for the second consecutive month in April. Data published by the National Bureau of Statistics on 30th April showed that China’s manufacturing activity remained in expansion territory at 50.3 points, above the 50-point benchmark separating growth from contraction, but momentum decelerated slightly from the previous month.
While both production and new orders continued to increase among surveyed manufacturing firms, the pace of production exceeded that of the new orders. At the same time, China’s employment index also contracted, albeit at the highest level since April 2025, registering its best performance over the year at 48.8 points.
Rui: Non-manufacturing PMI declined over the same period. The metric fell to 49.4 points in April, the lowest level in the past year, with contraction seen in both construction and services. New orders also performed poorly, coming in at 44.3 points, again the lowest level registered in the past year, after market demand in the non-manufacturing sector fell.
(Music)
Xinhe: According to data published by the National Bureau of Statistics, China’s producer price index, or PPI, jumped 2.8 per cent year-on-year in April, registering a second month of consecutive growth after 41 consecutive months of decline.
This rebound was primarily driven by cost-push inflation rather than an increase in demand, with costs for inputs including oil, gas, chemical materials and non-ferrous metals all rising. Consequently, although factory gate prices are no longer falling, manufacturers continue to see their profit margins diminish.
Rui: China’s consumer prices index, or CPI, also registered an expansion in April, growing by 1.2 per cent compared to a year prior. Increases in transportation energy prices contributed to this.
(Music)
Xinhe: On 9th May, Chinese Premier Li Qiang chaired a State Council executive meeting during which strategic priorities for the start of the China’s 15th Five-year Plan were outlined. Points covered included, the need to:
- better coordinate supply and demand, as well as the need to implement and refine measures to expand capacity and improve quality in the service sector;
- stabilise employment and strengthen China’s social safety net;
- enhance China’s basic research capabilities; and
- defuse risks relating to the real estate sector, local government debt, and small and medium-sized financial institutions.
(Music)
Rui: US President Donald Trump travelled to China today, 13th May, for the start of a three-day state visit – his first since November 2017, which will include a meeting with Chinese President Xi Jinping.
Xinhe: Against a backdrop of escalating US-China trade and investment tensions—with European businesses suffering as collateral damage—it is a positive that both leaders are meeting face to face. While the Chamber does not expect the visit to culminate in the signing of a ‘grand deal’, nor to address systemic issues facing the bilateral relationship, we hope it will help to build trust and pave the way for a de-escalation of tensions.
(Music)
Rui: On 12th May, the Chamber published the results of a flash survey on the impact of the Middle East conflict on European businesses operating in China. The survey found that 79% of respondents have been negatively impacted by the conflict.
Xinhe: Of those negatively impacted:
- 81% reported difficulties sourcing inputs from the region, which has already resulted in production stoppages for some, with more anticipated in the coming six months;
- two-thirds are facing logistics challenges, primarily related to the increased cost of transport and longer transport times;
- energy-related costs have increased for two-thirds; and
- just over three in ten have seen demand for their company’s products or services decrease.
Rui: A minority of respondents also reported having adjusted their company strategies as a result of the conflict. The survey found that:
- 28% have adjusted their China supply chain strategies, a figure that jumps to 64% of those surveyed in the chemicals and petroleum sector; and
- one in five have already adjusted, or are considering adjusting, their China investment plans.
The full survey findings can be found on the Chamber’s website via the link in the show notes.
(Music)
Xinhe: The European Chamber, in partnership with Roland Berger, will launch the 2026 edition of its flagship Business Confidence Survey (BCS) on 27th May.
After several years of European business confidence in the China market deteriorating, there are now signs that things may be approaching an inflection point, and could be set to improve should the right policies be implemented.
Rui: Join us online or at the Chamber’s Beijing office later this month, to hear Chamber President Jens Eskelund and representatives from each of the Chamber’s chapters present on the report’s key findings.