8th July 2026: New Energy Roadmap

RUI: On 26^th June, the 15^th Five-year Plan for the Construction of a New Energy System was released by the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA). The plan calls for strengthening energy security; advancing the green transition; boosting technological self-reliance; and improving market mechanisms.

XINHE: In terms of targets, the plan states that by 2030:

RUI: The plan demonstrates a clear ambition to transition towards a renewable-dominant and system-integrated energy structure, and places an emphasis on grid flexibility, storage deployment and cross-regional coordination.

XINHE: At the same time, it does not address how structural challenges facing China’s energy system will be resolved, included its fragmented market design; the limited predictability of cross-provincial electricity trading; incomplete demand-side flexibility monetisation; and the continued gap between China’s green electricity certificate system and emerging international carbon accounting standards.

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RUI: China received 327.29 billion yuan in foreign direct investment, or FDI, between January and May 2026, a year-on-year decrease of 8.6 per cent. That’s according to data published on 30^th June by the Ministry of Commerce.

XINHE: Over the period, 86.97 billion yuan of FDI was invested into the manufacturing sector, while the service sector attracted 234.15 billion yuan.

FDI into high-tech industries continued to grow, increasing by 9.4 per cent year-on-year, to stand at 130.14 billion yuan. As a result, FDI into high-tech industries accounted for 39.8 per cent of China’s total FDI attracted during the first five months of the year.

RUI: FDI relating to R&D and design services; computer and office equipment manufacturing; and, electronic and communication equipment manufacturing all also performed well, increasing by 96.2 per cent, 29.7 per cent and 18.2 per cent year-on-year respectively.

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RUI: Findings of a private survey released on 1^st July found that operating conditions in China’s manufacturing sector improved in June 2026.

XINHE: The RatingDog China Manufacturing Purchasing Managers Index—which is based on surveys conducted by S&P Global and sent to purchasing managers at around 650 private and state-owned companies—stood at 51.7 points in June. This marks the seventh consecutive month that the index has stayed above the 50-point threshold, which indicates an overall improvement in the manufacturing segment of China’s economy, compared to the previous month.

RUI: An increase in new orders was registered for a thirteenth consecutive month, while employment increased for the first time in three months, with the fastest rate of job creation registered since August 2023. An increase in the average price of inputs was recorded for a twelfth consecutive month, marking the longest sequence of input-price inflation registered since the first half of 2022.

XINHE: The RatingDog China General Services PMI came in at 54.1 points in June, continuing the trend of expansion which began in January 2023. Total activity and new business both increased; while new export business expanded at the fastest rates so far this year. Employment in the services sector rose for a second consecutive month, marking the first back-to-back increase since 2024.

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RUI: On 1^st July, new rules aimed at protecting the EU steel market from global overcapacity came into effect, after having been adopted by the Council of the European Union in June.

XINHE: The Steel Regulation sets tariff-free quotas at 18.3 million tonnes per year, introducing an out-of-quota duty of 50 per cent for 26 categories of steel products imported into the EU. It also introduces a traceability requirement to improve transparency of the EU steel supply chain.

RUI: In addition, companies will need to provide information on where they ‘melt and pour’ imported steel. Speaking on the regulation, Maroš Šefčovič, European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, said that via the regulation the bloc is seeking to “provid[e] market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology”.

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RUI: Every two months, the European Chamber publishes EURObiz, the online journal dedicated to covering European business in China, and one that contains contributions submitted by Chamber members who are experts in their field.

The May/June edition of EURObiz is available for free on the Chamber’s website at the link provided in the show notes and includes articles on a range of topics including:

arbitration in China;
derisking;
ensuring regulatory compliance when exporting pet food to China;
the EU and China’s respective cross-border data transfer rules and regulations; and
AI-driven job displacement.

XINHE: Listeners are also invited to contact the European Chamber if they are interested in contributing an article to or advertising in the magazine, which is distributed to 24,000 senior European and Chinese business executives and government officials, and to more than 1,600 European Chamber member companies.

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RUI: 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.

RUI: Listen to the full episode on our WeChat account, or your preferred podcast platform.

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