This episode contains segments on:

• Release of cross-border data transfer list in Shanghai’s Lin-gang Special Area;
• Macroeconomic indicators in April;
• China anti-dumping probe into chemical imports from the EU, US, Japan, Taiwan; and
• Rhodium Group and Atlantic Council’s China Pathfinder Q1 2024 update.

Also, listeners are invited to join the Annual General Meeting 2024 on 30^th May online or in Beijing if you are a member of the European Chamber.

Contact:

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

Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.

Read more:

Shanghai-Lingang Special Area issues cross-border data transfer list

https://www.lingang.gov.cn/html/website/lg/index/government/file/1791283594794135554.html

https://www.lingang.gov.cn/html/website/lg/index/government/file/1791283590130069505.html

https://www.lingang.gov.cn/html/website/lg/index/government/file/1791283592713760769.html

China macroeconomic indicators, April (NBS)

https://www.stats.gov.cn/sj/zxfb/202405/t20240517_1955759.html

https://www.stats.gov.cn/sj/zxfb/202405/t20240517_1955758.html

China anti-dumping probe into chemical imports from EU, US, Japan, Taiwan (MOFCOM)

http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202405/20240503510608.shtml

Rhodium Group/Atlantic Council – China Pathfinder: Q1 2024 Update

https://rhg.com/research/china-pathfinder-q1-2024-update/

Chamber event: Annual General Meeting 2024

https://www.europeanchamber.com.cn/en/upcoming-events/25943/_Members_Only_European_Chamber_Annual_General_Meeting_2024

Transcript:

RUI: Hello and welcome to China ShortCuts,

MARIANN: the European Chamber’s weekly catchup on China’s business landscape.

RUI: This episode was recoded on 22^nd May 2024.

(MUSIC)

RUI: On 17^th May, Shanghai’s Lingang New Area issued three whitelists of general data for cross-border data transfers, enabling firms in three industries operating in the pilot free-trade zone to transfer data in the listed categories abroad without the need for regulatory approval for a 12-month trial period.

MARIANN: The three selected industries are intelligent connected vehicle manufacturing, biopharmaceuticals, and public fund management. The three lists together cover 64 data types and detail specific application scenarios. While the listed categories will be exempt from security checks, data handlers will still be required to register the data on the free-trade zone’s public service management platform and complete the relevant filing and certification processes.

(MUSIC)

RUI: April macroeconomic data released by China’s statistics bureau on 17^th May showed that year-on-year growth in industrial production picked up speed from March, but retail sales expanded at the slowest pace recorded since December 2022.

MARIANN: Production at China’s larger industrial firms increased 6.7 per cent in April compared to the same period last year. Growth was recorded in 36 out of the 41 surveyed sectors. While supply side growth is showing signs of stabilisation, domestic demand still seems to be fluctuating. The total value of retail sales in April rose 2.3 per cent year-on-year, with the pace of growth decelerating for the fourth consecutive month and sinking to a sixteen-month low. The breakdown of the data indicated that the drop in the pace of expansion was true for both sales of goods and catering, but catering sales still increased at a pace that was more than double that of the growth in sales of goods.

(MUSIC)

RUI: On 19^th May, China’s Ministry of Commerce announced an anti-dumping probe into imports of certain chemicals from the European Union, the United States, Japan and Taiwan. The listed chemicals are frequently used in industries such as automotives and consumer electronics.

MARIANN: The announcement came only days after the US increased tariffs on Chinese imports of goods from what they called “strategic sectors” including solar panels, steel and electric cars. For its part, the EU has also launched several investigations into Chinese imports recently. One of the most high-profile was the anti-subsidy probe directed at Chinese EVs, followed by investigations into Chinese solar panel manufacturers suspected of disproportionately benefitting from government subsidies. Just last week, the EU initiated two separate anti-dumping probes into Chinese tinplate steel and wood flooring imports as well.

(MUSIC)

RUI: According to the latest update to the Rhodium Group’s and the Atlantic Council’s joint initiative, China Pathfinder, in the first quarter of 2024, China’s economic system showed signs that it is moving away from market economy norms.

MARIANN: The report highlighted market competition and portfolio investment openness as the areas where this divergence was observed during the first quarter. Among the issues listed were the supply-side policies disproportionately boosting industrial production amid rising global concerns over Chinese industrial overcapacity. The report cited that government support provided for failing enterprises in the form of subsidies or credit forbearances led to the share of loss-making industrial firms rising from 15% in 2021 to 22% in 2023. The report stressed that rather than looking at China’s official economic data, foreign observers have been carefully watching China’s policy trends, and expect further growth in the country’s net exports as a result. Therefore, it warned that China’s trade partners are likely to employ more trade defence measures, especially in areas including EVs, green energy equipment, steel and chemicals manufacturing.

(MUSIC)

RUI: Every year, the European Chamber holds its Annual General Meeting to provide an overview of its advocacy activities and other services it provides for its members. This year’s meeting will be held on 30^th May in Beijing, but members will also have the option to join online.

MARIANN: At the meeting, EU Ambassador to China and Honorary President of the European Chamber, Jorge Toledo Albiñana, will deliver a keynote speech. Afterwards, Chamber President Jens Eskelund will present the Chamber’s Annual Report showcasing the key moments and achievements from 2023. Chairs of the Chamber’s six local chapters will also provide an overview of their respective chapters’ key achievements.

RUI: In addition, members will have the opportunity to cast their vote on a proposed amendment to the Chamber’s Articles of Association. The goal of the proposed amendment, as put forward by the Chamber’s Executive Committee, is to fulfil a requirement by the Ministry of Finance and ensure the continuation of the Chamber’s non-profit status. We encourage all our members to participate in the voting, as this amendment can only pass if at least two-third of the Chamber’s members cast their votes.

(MUSIC)

MARIANN: 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.