This episode contains segments on:
- China’s January–September FDI utilisation;
- The Fourth Plenum of the CPC Central Committee Communiqué;
- China’s January–October industrial profits; and
- US-China and EU-China talks on rare earth export controls.
Listeners are also invited to attend an event on 5th November in Beijing on MNCs’ China strategies in the era of AI.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China January-September FDI utilisation (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_a1fb9e9cd94e4590a25ef3ccf9351852.html
Fourth Plenum of the CPC Central Committee Communique
China January-October industrial profits (NBS)
https://www.stats.gov.cn/sj/zxfb/202510/t20251027_1961695.html
US-China and EU-China talks on rare earth export controls
https://www.ft.com/content/3ae00c92-f216-4da5-9217-220ec42d37cc
Chamber event: MNCs’ Strategies in China in the Era of AI
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 29th October 2025.
(MUSIC)
RUI: According to data released by China’s Ministry of Commerce on 25th October, the country’s actual use of foreign direct investment or FDI continued to decline in the first three quarters of 2025. However, in September alone a year-on-year increase was recorded.
MARIANN: China’s FDI utilisation amounted to 574 billion yuan in the January-September period, which meant a drop of 10.4 per cent compared to the same period last year. The rate of decline, however, slowed compared to the previous month as in September, total used FDI increased 11.2 per cent year-on-year. In the first nine months of the year, slightly over a quarter of FDI was utilised in manufacturing, with the remaining three quarters channeled into services.
(MUSIC)
RUI: Between 20th and 23rd October, the 20th Central Committee of the Communist Party of China convened in Beijing for its fourth plenary session, during which the Party leadership deliberated on the country’s upcoming, 15th Five-Year Plan. Following the plenum, a communique was issued on 23rd October, outlining the core principles and major tasks for China’s economic and social development in the 2026 to 2030 period.
MARIANN: The Communique contains no major surprises, signalling that China’s 15th Five-year Plan will have a high degree of policy continuity following on from the 14FYP. Ensuring economic security—including via achieving a high degree of technological self-reliance in strategic sectors and by maintaining the country’s global manufacturing dominance—will continue to be a key priority for the Chinese authorities over the coming half a decade.
Under the 15FYP, China will continue to boost domestic demand – partly by improving living standards. The Communique also suggests that efforts will be made to balance supply and demand growth. This is a positive, as a persistent mismatch between the two has already led to several problems for the Chinese economy, including unsustainable competition and an increasing reliance on exports, resulting in an increase in trade imbalances. However, the document does not contain any detail on how this will be achieved.
The full text of the 15FYP is expected to be released after the upcoming Two Sessions in March 2026.
(MUSIC)
RUI: Data published by the National Bureau of Statistics on 27th October showed that the growth in profits at larger industrial firms in China accelerated substantially in September.
MARIANN: In the first three quarters of 2025, industrial profits rose 3.2 per cent year-on-year. This was the fastest pace of increase recorded since July 2024. The acceleration was due to a marked uptick in profits in September, which was 21.6 per cent year-on-year. A key factor pulling the figure up for the first three quarters was a sharp rise in manufacturing profits, which were up 9.9 per cent year on year.
(MUSIC)
RUI: After two days of talks on 24th and 25th October, on the sidelines of the summit of the Association of Southeast Asian Nations or ASEAN held in Malaysia, the United States and China reportedly reached a preliminary agreement on some of their key trade issues, including China’s export controls on rare earths.
MARIANN: The Financial Times reported that the US side expected China to delay export controls on rare earth minerals, which were set to come into force in early November. In exchange, the US side would not go through with imposing 100 per cent tariffs on Chinese imports, as suggested by President Donald Trump earlier in October. The Chinese side confirmed that a preliminary consensus was reached, but provided no further details. The two presidents are scheduled to meet on 30th October in South Korea on the sidelines of the Asia-Pacific Economic Cooperation, when details of the agreement could be finalised.
Also at the ASEAN summit, European Council President Antonio Costa met with Chinese Premier Li Qiang on 27th October, and expressed concerns about China’s export controls. MOFCOM Director General Jiang Qianliang is due to travel to Brussels this week to discuss the issue with European Commission officials within the framework of the EU-China Export Controls Dialogue, with the goal of finding solutions.
(MUSIC)
RUI: The rapid rise of artificial intelligence or AI is profoundly reshaping the global business landscape. In China, the ‘AI Plus’ initiative was first included in the Government Work Report in 2024. The 2025 report vowed to further advance this initiative. The State Council recently issued a guideline to implement the ‘AI Plus’ initiative, promoting the extensive and in-depth integration of AI across various fields.
MARIANN: The fast development of AI triggered a paradigm shift that goes far beyond technological deployment—it challenges how organisations think and make decisions about their development.
RUI: Join us on 5th November in Beijing to learn from top business strategists, AI experts and senior executives about the challenges and opportunities for multinational companies in China’s “intelligent economy”.
(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.