This episode contains segments on:
- China August macroeconomic data
- US-China high-level meeting in Madrid
- New measures on boosting service consumption
- China January-July services trade
On 17th September, the European Chamber released its annual European Business in China Position Paper, which is available to download for free from the Chamber’s official website.
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Read more:
China August macroeconomic data
https://www.stats.gov.cn/sj/zxfb/202509/t20250915_1961180.html
https://www.stats.gov.cn/sj/zxfb/202509/t20250915_1961177.html
US-China high-level meeting in Madrid
https://www.mofcom.gov.cn/syxwfb/art/2025/art_b9b6f8aebf614527a5c9b1eec2b7d39c.html
New measures on boosting service consumption
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_e1a2b7dd69fa4944aaf6ac1554ce404f.html
China January-July services trade
https://www.mofcom.gov.cn/xwfb/sjfzrfb/art/2025/art_9aaaf4b068a146e3a136074dc50cef94.html
European Chamber publication: European Business in China Position Paper 2025/2026
https://www.europeanchamber.com.cn/en/publications-position-paper
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 17th September 2025.
(MUSIC)
RUI: According to data release by the National Bureau of Statistics on 15th September, industrial production growth in China was the slowest recorded in a year in August, while retail sales growth also slowed to the lowest level since last November.
MARIANN: Production at China’s larger industrial firms increased 5.2 per cent year-on-year in August, with the rate of growth decelerating for the second consecutive month. Out of the three main industrial sectors of mining, manufacturing and utilities, production growth was the strongest in manufacturing at 5.7 per cent. A breakdown by commodities showed that out of 623 types of industrial goods, production volumes increased in 319 categories – so just above half of all surveyed commodities saw an uptick in production volumes. In the first eight months of the year, industrial production grew 6.2 per cent compared to the same period last year. This compares with a 3.7 per cent year-on-year increase in retail sales for the January-August period – pointing to a continued imbalance between the growth in supply and demand. In August alone, the total value of retail sales increased 3.4 per cent year-on-year, following a four-month deceleration of growth. In the first eight months of the year, the total value of online retail sales rose 9.6 per cent year-on-year, with the online retail sales of physical goods accounting for a quarter of all consumer goods sales for this period.
(MUSIC)
RUI: Another round of US-China talks concluded in Madrid on 15th September, with discussions about the Chinese-owned social media platform TikTok’s US operations dominating the meeting.
MARIANN: Both sides agreed to a ‘framework’ deal that would allow TikTok to continue operating in the US despite a 2024 law that would ban the app unless its owner, ByteDance, were to divest from the platform. Chinese President Xi Jinping and US President Donald Trump are expected to speak on 19th September to discuss the potential deal. Broader trade discussions, including on tariffs, took a back seat during the talks, despite an impending 10th November expiration date on the second 90-day ‘tariff truce’ between the two countries. Given the abrupt nature in which tariffs were imposed in the first place, as well as the last-minute announcement of the second ‘tariff truce’ in August, meaningful progress on a new deal that avoids a return to tariffs at the highest levels is not likely until closer to the 10th November deadline.
(MUSIC)
RUI: On 16th September, nine Chinese government departments, including the Ministry of Commerce, jointly released measures aimed at boosting services consumption, with the focus on expanding demand through improving people’s livelihood and cultivating growth points for services consumption.
MARIANN: The document comprises 19 points grouped under five areas. The measures include calls for action to improve the quality as well as the supply of services in areas such as culture and entertainment, sports, housekeeping, child- and elderly care, expand digital services consumption and strengthen financial support for the industry.
(MUSIC)
RUI: Data published by China’s Ministry of Commerce on 5th September showed that in the first seven months of 2025 the country’s services trade growth accelerated further from the first half of the year.
MARIANN: The total value of trade in services reached over 4 thousand billion yuan – up 8.2 per cent year-on-year. Services exports grew at a faster pace than imports, but the latter still made up more than 56 per cent of China’s overall services trade. The Ministry highlighted that trade in knowledge-intensive services maintained steady growth, up 6.8 per cent year-on-year in the January-July period. In this area, China’s trade deficit increased 21 per cent compared to the same period last year. In terms of exports, the export of China’s tourism-related services rose at the fastest pace, increasing over 62 per cent year-on-year.
(MUSIC)
RUI: On 17th September, the European Chamber launched its European Business in China Position Paper 2025/2026, calling on Chinese policymakers to use the upcoming 15th Five-year Plan to affect a shift towards a new, productive development model.
MARIANN: The Executive Position Paper offers five overarching Key Recommendations to Chinese policymakers highlighting priority areas where, building on the achievements of the 14th Five-year Plan focused efforts can help China meet its development goals while remaining fully integrated in—and valued by—the global economic system. The Chamber’s individual industry and horizontal position papers provide more granular detail, putting forward more than 1,100 constructive recommendations for optimising China’s business environment.
RUI: The paper is now available to download for free from the Chamber’s website.
(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.