This episode contains segments on:
- European Commissioner Maros Šefčovič meets with Chinese Minister of Commerce Wang Wentao;
- China’s January-May 2026 industrial profits;
- China’s June 2026 purchasing managers’ index; and
- Measures for Industrial and Supply Chain Security Investigations.
Listeners are also invited to attend the event Exclusive Dialogue with Professor Adam Tooze: China Shock 2.0 and EU-US-China Economic Ties on 3rd July online or in person in Beijing.
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Read more:
European Commissioner Maros Šefčovič meets with Chinese Minister of Commerce Wang Wentao
https://ec.europa.eu/commission/presscorner/detail/en/statement_26_1480
https://ec.europa.eu/commission/presscorner/detail/en/speech_26_1344
https://www.mofcom.gov.cn/syxwfb/art/2026/art_9cd42e0b33234aeeb513261f9a9f03a0.html
China’s January-May 2026 industrial profits (NBS)
https://www.stats.gov.cn/sj/zxfb/202606/t20260627_1964019.html
https://www.stats.gov.cn/sj/sjjd/202606/t20260627_1964017.html
China’s June 2026 official PMI data (NBS)
https://www.stats.gov.cn/sj/zxfb/202606/t20260630_1964032.html
https://www.stats.gov.cn/sj/sjjd/202606/t20260630_1964033.html
MOFCOM’s Measures for Industrial and Supply Chain Security Investigations
https://www.mofcom.gov.cn/zcfb/zc/art/2026/art_b2212d76bb3841669babefe7ef997852.html
https://www.mofcom.gov.cn/syxwfb/art/2026/art_9cd42e0b33234aeeb513261f9a9f03a0.html
Chamber event: Exclusive Dialogue with Professor Adam Tooze: China Shock 2.0 and EU-US-China Economic Ties
European Chamber Membership: https://www.europeanchamber.com.cn/en/become-a-member
Transcript:
RUI: Hello and welcome to China ShortCuts,
FRANCESCA: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 1st July 2026.
(MUSIC)
RUI: On 29th June, European Commissioner for Trade and Economic Security and Interinstitutional Relations and Transparency, Maros Šefčovič, and Chinese Minister of Commerce Wang Wentao held the first meeting of the EU-China Trade and Investment Consultations (TIC) in Brussels.
FRANCESCA: A joint press release on the meeting noted that four initial workstreams under the TIC had been identified—on trade and investment balancing, export controls, IPR, and WTO reform—with officials mandated to engage in these areas. The two sides also agreed to establish a joint monitoring mechanism to exchange relevant data, monitor trade flows and support technical work with a view to improving transparency, enhancing mutual trust and managing trade frictions.
RUI: In a set of published press remarks, Commissioner Šefčovič noted that his goal is “balancing the trade relationship between the EU and China”, given that “China’s exports to the EU keep rising, while [the EU’s] market share in China keeps shrinking”, something that is “not sustainable”. The Commissioner also added that while the EU remains open for business, it needs to “defend [its] industrial base and keep pushing for a level playing field globally, so [that its] industries get a fair shot at competing.”
FRANCESCA: A statement published by China’s Ministry of Commerce, on 30th June, noted that Minister Wang had raised concerns relating to the EU’s draft Cybersecurity Law 2, as well as its Industrial Accelerator Act as part of the discussions, and that the Minister had reiterated that the EU should not see China as “the root of the EU’s problems”.
Further talks are set to take place this Autumn at the ministerial level. It remains to be seen if the EU-China Trade and Investment Consultations will replace other bilateral dialogues, such as the EU-China High-level Economic Dialogue, or take place in addition to them.
RUI: Amid escalating trade and investment tensions, it is positive that senior officials from both sides are engaging face-to-face. The Chamber hopes that such talks will pave the way for a more sustainable EU-China relationship and stands ready to contribute to this end.
(MUSIC)
RUI: Profits at larger industrial firms in China—those with an annual revenue of at least 20 million RMB—increased by 18.8 per cent year-on-year during the first five months of 2026, according to data released by the National Bureau of Statistics on 27th June.
FRANCESCA: Strong growth was seen in both mining and manufacturing, with profits increasing by 33.5 per cent and 20 per cent respectively. By contrast, profits at larger firms operating in the electricity, heat, gas and water production and supply segment of the economy fell by 2.7 per cent year-on-year over the same timeframe.
(MUSIC)
RUI: Data published by the National Bureau of Statistics on 30th June showed that manufacturing activity in China expanded in June. The country’s official Manufacturing Purchasing Manager’s Index, or PMI, edged up to 50.3 points in June, from 50 points in May, the threshold that separates contraction and expansion.
Among the sub-indices covered by the index, the production and new orders indexes both registered expansion, coming in at 51.4 and 51.2 points respectively, indicating both supply and demand growth.
FRANCESCA: The National Bureau of Statistic’s Non-manufacturing PMI, which comprises construction and services data, stood at 50.2 points in June, up 0.1 percentage points from May’s level. At the same time, several subindices covered by the index—including for new orders, sales prices and employment—all continued to register contraction.
(MUSIC)
RUI: On 24th June, the Ministry of Commerce issued the Measures for Industrial and Supply Chain Security Investigations (Measures), which contain 22 articles and came into effect that same day.
It follows the publication of the State Council’s Regulations on the Security of Industrial and Supply Chains (Decree 834) in April 2026, which is intended to “guard against security risks in industrial and supply chains, enhance their resilience and security, and safeguard economic and social stability as well as national security.”
FRANCESCA: Decree 834 provides a legal framework through which the relevant authorities can respond to actions perceived as damaging to China’s industrial and supply chain security. The Measures provide further details on how related investigations are to be initiated and conducted, as well as on what action can be taken in response.
The broad scope of the Measures and the vague language they contain raises concerns that legitimate commercial decisions could be interpreted as violating the legislation. For example, Article 4 of the document notes that when assessing potential harm to China’s industrial and supply chain security, the MOFCOM may consider: the impact of actions on both “China’s industrial and supply chains, including essential materials, technology, capital, assets, data, information, personnel, enterprises, and projects”; and “the international competitiveness and development potential of China’s industrial and supply chains”, without specifying what criteria will be adopted for carrying out such assessments.
RUI: The Measures add further uncertainty to European companies doing business in or with China, and raises the possibility of potential conflicts with binding third-country laws and regulations.
(MUSIC)
RUI: China’s growing trade surplus with the EU, as well as the increased competitiveness and technological upgrading of its firms, which are now direct competitors of European players in many industries, has led to intense debate in the EU over what this means for the bloc’s economy, and how policy makers from the continent should respond.
The notion of a ‘China shock 2.0’ has emerged, with a heightening of concerns over Europe’s potential de-industrialisation.
FRANCESCA: Join us on 3rd July online or in person at the Chamber’s Beijing office to hear Colombia University and European Institute Director Professor Adam Tooze’s insights on the China Shock 2.0 and its implications for EU-US-China economic ties. This event is exclusively open to European Chamber members. Should you not yet be a Chamber member and be interested in learning more about the Chamber’s services, then more information can be found at the link in the show notes.
(MUSIC)
FRANCESCA: 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.
RUI: Listen to the full episode on our WeChat account, or your preferred podcast platform.