This episode contains segments on:
- China’s September 2026 official and RatingDog China Purchasing Managers’ Index (PMI);
- China’s September price indices;
- The second round of meetings of the EU-China Trade and Investment Consultation Mechanism; and
- China to cut export tax rebate for new-energy vehicles in 2027.
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Read more:
China’s Official Manufacturing and Non-manufacturing PMIs, September
https://www.stats.gov.cn/sj/zxfb/202609/t20260930_1965449.html
RatingDog China General Manufacturing and Services PMIs, September
https://www.pmi.spglobal.com/Public/Home/PressRelease/9825e1ee0a2b4354b73df0378a9bba16
https://www.pmi.spglobal.com/Public/Home/PressRelease/55bacce7c2164d2fb2b750c0aff7037f
China’s September Price Indices (CPI, PPI)
https://www.stats.gov.cn/sj/zxfb/202610/t20261014_1965476.html
https://www.stats.gov.cn/sj/zxfb/202610/t20261014_1965477.html
https://www.stats.gov.cn/sj/sjjd/202610/t20261014_1965475.html
The second round of meetings of the EU-China Trade and Investment Consultation Mechanism
https://ec.europa.eu/commission/presscorner/detail/en/statement_26_2122
https://www.mofcom.gov.cn/xwfb/bldhd/art/2026/art_870aab913b204c278dc2c42b51174cb1.html
China to cut export tax rebate for new-energy vehicles in 2027
https://szs.mof.gov.cn/zhengcefabu/202610/t20261012_4002592.htm
Transcript:
RUI: Hello and welcome to China ShortCuts,
XINHE: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 14th October 2026.
(MUSIC)
RUI: China’s manufacturing and service sector improved in September, with both China’s official and private Purchasing Managers’ Indexes—or PMIs—for manufacturing and non-manufacturing returning to expansion territory.
XINHE: Data released by the National Bureau of Statistics on 30th September showed that both the Official Manufacturing PMI and the Non-manufacturing PMI came in just above the 50-point mark separating growth from contraction. In manufacturing, supply growth outpaced demand growth, with the expansion in new orders slowing slightly from the previous month. As for the official non-manufacturing index, which encompasses construction and services activity, the subindex for new orders remained well below the 50-point benchmark, indicating sustained weak demand.
The RatingDog China PMIs—which are based on private surveys conducted by S&P Global—showed more pronounced improvement for both the manufacturing and service sectors. The key reason identified for the improvements was an uptick in demand. This discrepancy with the official data can be largely attributed to the different scope of the surveys.
(MUSIC)
RUI: According to data published by National Bureau of Statistics on 14th October, both producer and consumer prices increased in September compared to a year ago.
XINHE: The producer price index showed a five per cent year-on-year increase from 3.8 per cent in August, marking the fastest rate of growth since June 2022. This can be attributed mainly to price increases in fossil fuel-related industries, including coal, natural gas and petroleum extraction and processing, many of which registered year-on-year price increases of more than 20 per cent.
RUI: Meanwhile, consumer price inflation remained moderate, with China’s consumer price index—or CPI—expanding 0.9 per cent year-on-year in September. High fuel prices heavily contributed to CPI growth, rising almost 15 per cent from a year ago.
(MUSIC)
RUI: From 8th to 9th October, a delegation of European officials led by European Commissioner for Trade and Economic Security Maroš Šefčovič travelled to Beijing for a second series of meetings held under the EU-China Trade and Investment Consultation (TIC) mechanism.
Commissioner Šefčovič met with Chinese Minister of Commerce Wang Wentao and Vice Premier He Lifeng as part of the visit. Prior to his official meetings, Commissioner Šefčovič had met with members of the European Chamber’s Advisory Council.
On 9th October, the EU and China issued a joint statement with a list of 16 ‘deliverables and understandings’ organised under the four pillars of trade and investment balancing, export controls, IPR and WTO, that were agreed upon during the first meeting under the TIC mechanism in June 2026.
XINHE: The European Chamber appreciates the release of the joint statement, which touches upon several important issue areas for European businesses in China. Although the current lack of detail in the document makes it difficult to assess how far-reaching the impact of this round of talks may be, officials did reach an agreement on a number of issues, including a pledge to halve Chinese exports of hybrid and plug-in hybrid vehicles to the EU. This could help mitigate some concerns regarding the impact that surging Chinese imports are having on the European single market.
European businesses in China are also encouraged that the two sides have set clear deadlines to track progress on their commitments, in keeping with the understanding that discussions need to be urgently followed by tangible action.
(MUSIC)
RUI: According to a joint statement released by the Ministry of Finance and the State Taxation Administration on 13th October, the value-added tax export rebate for new-energy vehicles will be cut to nine per cent from 13 per cent starting from 1st April 2027. Export consumption tax policies for products subject to the tax will remain unchanged, with existing tax refund or exemption arrangements continuing to apply.
XINHE: This announcement immediately followed the second round of meetings under the EU-China TIC mechanism.
(MUSIC)
XINHE: 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.