This episode contains segments on:
- China’s third quarter GDP;
- China’s September macroeconomic data;
- China’s January–September 2026 urban fixed asset investment; and the
- Draft revision of the Catalogue of Technologies Prohibited and Restricted from Export.
Listeners are also invited to attend a breakfast roundtable on 30th October with Joerg Wuttke, partner at DGA Albright Stonebridge Group, on EU-China dynamics after the second high-level EU-China trade talks.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China Q3 GDP growth
https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965618.html
China’s September macroeconomic data
https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965617.html
https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965614.html
https://www.stats.gov.cn/sj/sjjd/202610/t20261019_1965653.html
China’s January-September 2026 urban fixed asset investment
https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965615.html
https://www.stats.gov.cn/sj/zxfb/202610/t20261019_1965616.html
A joint release by China’s Ministry of Commerce (MOFCOM) and the Ministry of Science and Technology (MOST) on seeking public comments on draft adjustments to its Catalogue of Technologies Prohibited and Restricted from Export
https://www.mofcom.gov.cn/zcfb/dwmygl/art/2026/art_61446ab4beee4f63973d4d0ab3097648.html
https://www.mofcom.gov.cn/zcjd/dwmy/art/2026/art_c8712c94f11f49de96c190f876777e44.html
Breakfast roundtable with Joerg Wuttke: EU-China dynamics after the second high-level EU-China trade talks
https://mp.weixin.qq.com/s/TukRXqNiAQIwOxBXF09KOA
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 21st October 2026.
(MUSIC)
RUI: According to the National Bureau of Statistics, in the third quarter of 2026, the rate of China’s economic growth recovered from a three-year low registered in the previous quarter.
XINHE: The country’s gross domestic product, or GDP, increased 4.5 per cent year-on-year in the July-September period, up from 4.3 per cent in the previous quarter. This means that the Chinese economy is currently on track to achieve the 2026 GDP growth target of 4.5 to 5 per cent set out at the Two Sessions in March.
At the same time, the GDP growth figure alone provides limited insight into how China’s economy is performing. Hard GDP targets are no longer an effective way to measure China’s economic development, as the country is in the process of transitioning to a growth model predicated on quality rather than quantity. Instead of referring just to the figures, the focus should be on the composition of the country’s GDP, which is vital for sustainable and quality growth. In this regard, the European Chamber is advocating for a rebalancing of supply and demand.
(MUSIC)
RUI: Additional data released by China’s National Bureau of Statistics on 19th October showed that while both industrial production and retail sales growth accelerated in September, the increase in retail sales is still lagging behind that of industrial output, pointing to a continued imbalance between supply and demand.
XINHE: The total value of production at larger industrial firms rose 5.5 per cent year-on-year in September – the fastest pace recorded in six months. Out of the three industries of mining, manufacturing and utilities, the rate of growth was the highest in manufacturing at six per cent. 31 out of 41 industrial sectors surveyed registered year-on-year increases in production output in September, with the computer, communications and other electronic equipment manufacturing sector recording the fastest rate of growth – surpassing 16 per cent.
RUI: Meanwhile, the total value of retail sales of consumer goods in China expanded 1.1 per cent year-on-year in September, up from 0.4 per cent recorded the previous month. A key factor holding back retail sales in September was a continued weakening of car sales, which declined over 21 per cent year-on-year.
In the first three quarters of 2026, retail sales grew 1.1 per cent year-on-year. This compares with a 5.3 per cent growth rate in industrial production for the same period. Notably, a breakdown of the data showed sharp dips in the sales of several goods categories that have been targeted by consumer trade-in schemes in previous years, including household appliances and audio-video equipment, furniture and cars. The decrease in the sales of these products underscores the limited, long-term impact that trade-in measures have on boosting consumption, as they front-load purchases of higher-cost, durable goods that have infrequent purchasing cycles.
(MUSIC)
RUI: China’s urban fixed asset investment continued to contract in the first nine months of 2026, with the property sector remaining a major drag.
XINHE: According to China’s National Bureau of Statistics, the latest data released on 19th October showed that fixed-asset investment fell 7.2 per cent year-on-year in the January to September period. Investment into real estate development plunged further, down more than 20 per cent from a year ago. Both infrastructure and manufacturing investments also fell, by 4.2 per cent and 2.1 per cent respectively.
(MUSIC)
RUI: On 16th October, China’s Ministry of Commerce and Ministry of Science and Technology issued a public call for comments on draft adjustments to its Catalogue of Technologies Prohibited and Restricted from Export, which proposes adding a total of 40 technologies in artificial intelligence, biomedicine and photovoltaic solar systems to the list.
XINHE: While the comments are not due until 15th November, from the date of publication until the date of formal revision and implementation, technology export operators are required to complete pre-export registration before exporting the newly added technologies. According to the press briefing issued the same day, the ministry said that the export restrictions aim to “guard against the risks of loss of control over, and improper proliferation of, relevant technologies, while ensuring normal international exchanges and cooperation in science and technology”. The ministry also highlighted that the proposed measures are highly specific, which would limit their scope and facilitate implementation and future updates of the catalogue.
(MUSIC)
RUI: Amid today’s increasingly complex global geopolitical and economic environment, different areas of the EU‑China relationship are evolving in different ways: while pockets of cooperation still exist there are also structural divergences that increase challenges.
Despite the more difficult circumstances, the recently concluded 2nd round of meetings of the EU‑China Trade and Investment Consultation Mechanism resulted in the issuance of a joint statement that outlines key steps towards stabilising bilateral trade ties. Meanwhile, at the European Council meeting in mid-October, EU leaders agreed on the importance of maintaining dialogue with China and using existing instruments and developing new ones to address further structural imbalances in the relationship.
XINHE: Join us in Beijing on 30th October, to hear former European Chamber President Joerg Wuttke, now partner at DGA Albright Stonebridge Group, who will share his insights on Europe’s internal debates on China. Based in Washington, he will also bring his take on US‑China high-level exchanges and how evolving transatlantic dynamics are also shaping EU‑China relations and impacting European businesses.
(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.