This episode contains segments on:
- China lifts sanctions on members and a subcommittee of the European Parliament
- Caixin China Manufacturing and Services PMI in April
- Rhodium report: Was Made in China 2025 Successful?
The March/April 2025 edition of the Chamber’s bimonthly magazine, EURObiz, is available to download from the Chamber’s website.
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Read more:
China lifts sanctions on members and a subcommittee of the European Parliament
https://www.fmprc.gov.cn/eng/xw/fyrbt/lxjzh/202505/t20250506_11616191.html
https://english.www.gov.cn/news/202505/06/content_WS6819f305c6d0868f4e8f24b6.html
Caixin China Manufacturing and Services PMI, April
https://www.pmi.spglobal.com/Public/Home/PressRelease/d939158f5bb0474bbba845b82baed01c
https://www.pmi.spglobal.com/Public/Home/PressRelease/c0aa2c1df0f04c25936e520967ad2e5d
Rhodium report: Was Made in China 2025 Successful?
EURObiz magazine March/April 2025
https://www.europeanchamber.com.cn/en/eurobiz-magazine
Transcript:
RUI: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 7th May 2025.
(MUSIC)
RUI: China has lifted its sanctions on members of the European Parliament and the Parliament’s Subcommittee on Human Rights.
MARIANN: In a press release issued on 30th April, the European Parliament called the move “a step in restoring parliamentary dialogue with China.” The sanctions were originally imposed in March 2021 by China in response to the EU’s sanctions placed on four Chinese officials and one entity related to human rights allegations in Xinjiang. Since the introduction of these sanctions, the EU-China Comprehensive Agreement on Investment, which had reached a political agreement at the end of 2020, has been formally frozen in the European Parliament. At a regular press conference of China’s Ministry of Foreign Affairs, ministry spokesperson Lin Jian commented that the decision to lift restrictions on parliamentary exchanges was agreed between the two sides.
On 6th May, the two sides exchanged congratulations over the 50th anniversary of diplomatic ties between the European Union and China. In his message to European Commission President Ursula von der Leyen and European Council President Antonio Costa, Chinese President Xi Jinping highlighted the comprehensive strategic partnership between the EU and China and noted the two markets’ important role in promoting globalisation and a multipolar world order.
(MUSIC)
RUI: According to private surveys, manufacturing and services expansion in China both slowed in April, after the United States introduced sky-high tariffs on imports from the country.
MARIANN: The Caixin China General Manufacturing Purchasing Managers’ Index or PMI stood at 50.4 points in April, only slightly above the 50-point mark that separates growth from contraction. It was in sharp contrast to the 51.2 points recorded in March, and marked the lowest level since January. The key factor stalling growth was a slower increase in total new orders, with higher US tariffs contributing to a drop in new export orders. Weaker demand also dampened manufacturing output, which in turn led to a reduction of employment levels. While surveyed companies maintained a positive outlook, the level of business confidence dipped to the third lowest level ever recorded, with firms reporting concerns over trade uncertainty.
Services showed a similar picture, with expansion slowing due to a limited rise in new business. Some surveyed firms reported that they had been negatively impacted by tariff-related disruptions to goods trade in April. Service providers’ outlook also dipped to historical lows, with business confidence slipping to the second-lowest level on record.
(MUSIC)
RUI: On 5th May, the Rhodium Group released a report to evaluate the relative success and impact of the Made in China 2025 initiative, which was aimed at reducing reliance on foreign technology and enhancing domestic innovation.
MARIANN: The Washington-based think tank points out that while the policy disappeared from public discourse in 2018 due to international criticism, its core objectives continued under alternative frameworks. The report finds that financial state support intensified, with tax benefits for innovation increasing by almost 29 per cent annually from 2018 to 2022. Meanwhile, state investment through government guidance funds rose five-fold from 2015 to 2020, while market barriers compelled foreign companies to localise production.
As for the targets set out in the plan, the report concludes that China has reduced import dependencies in sectors like memory chips and medical devices, but still relies on foreign firms in critical areas like biomedicine and advanced semiconductors. Chinese firms gained market share in targeted sectors, achieving global competitiveness in some high-tech areas like EVs and high-speed rail. However, they lag behind in global revenue and cutting-edge technologies in most sectors listed in the initiative, according to the report.
Overall, the report—which is in line with the Chamber’s recently published report on the same topic—finds that despite progress, China’s industrial policies have led to inefficiencies and economic imbalances, marked by stagnating productivity growth and strained relations with its trading partners.
(MUSIC)
RUI: The latest edition of the Chamber’s bimonthly magazine EURObiz is dedicated to the topic of the Made in China 2025 initiative, which is set to conclude this year.
MARIANN: You can download the magazine from the Chamber’s website for free, and read about the successes and failures of this ambitious plan and more.
RUI: Other articles featured in the March/April issue explore the impact of China raising the age limit for retirement and the issue of limiting environmental impact through waste reduction.
(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.