This episode contains segments on:
- China’s August 2026 foreign trade in goods data
- China’s August 2026 producer price index and consumer price index
- Interest, dividends and profit distributions received by foreign individuals from FIEs are to be subject to a 20 per cent tax
- Ministry of Commerce media briefing on EU-China trade talks
Listeners are also invited to attend the official launch of the European Chamber’s European Business in China Position Paper 2026/2027 online on 22nd September.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
Follow the European Chamber on LinkedIn, X, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.
Read more:
China’s August 2026 foreign trade in goods data
http://www.customs.gov.cn/customs/302249/zfxxgk/fdzdgknr/302274/302275/9f806879-2.html
China’s August 2026 producer price index and consumer price index
https://www.stats.gov.cn/sj/zxfb/202609/t20260909_1965262.html
https://www.stats.gov.cn/sj/zxfb/202609/t20260909_1965263.html
https://www.stats.gov.cn/sj/sjjd/202609/t20260909_1965261.html
Ministry of Finance and State Taxation Administration announce interest, dividends and profit distributions received by foreign individuals from FIEs are to be subject to a 20 per cent tax
https://fgk.chinatax.gov.cn/zcfgk/c102416/c5252107/content.html
MOFCOM media briefing on EU-China trade talks
https://www.mofcom.gov.cn/xwfbzt/2026/swbzklxxwfbh2026n9y3r/index.html
European Chamber event: European Business in China Position Paper 2026/2027 launch
https://mp.weixin.qq.com/s/uyLlb2Tqub9ClQ7iyD2luw
Transcript:
RUI: Hello and welcome to China ShortCuts,
XINHE: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 9th September 2026.
(MUSIC)
RUI: China exported 401.4 billion US dollars’ worth of goods to the rest of the world in August 2026, a year-on-year increase of 25 per cent, according to data published by China’s General Administration of Customs. The total value of goods that China imported from the rest of the world grew by 28.2 per cent over the same period, to stand at 282.3 billion US dollars.
XINHE: As a result, China recorded a 119 billion US dollar trade in goods surplus with the rest of the world in August, an increase of 5.8 per cent on the 112.5 billion US dollar trade in goods surplus it recorded in July. The country’s trade in goods surplus with the EU recorded over the same timeframe narrowed to 32 billion US dollars, a decrease of 5.8 per cent compared to July 2026.
RUI: The EU’s large trade deficit with China has become a significant point of contention in Brussels and many EU Member State capitals. While August’s trade data may be viewed as a step in the right direction by some officials in Europe, a more substantive rebalancing of trade flows will likely be viewed as necessary for the EU and China to achieve a more sustainable trading relationship.
(MUSIC)
RUI: According to data published by China’s National Bureau of Statistics on 9th September, China’s producer price index—or PPI—and consumer price index—or CPI—both registered inflation in August.
XINHE: The PPI rose by 3.8 per cent year-on-year, the second highest monthly rate of inflation recorded in 2026. The National Bureau of Statistics attributed this increase to a rise in international commodity prices, as well as increased demand in some sectors as a result of China’s domestic industrial upgrading.
RUI: Meanwhile, the CPI registered 0.8 per cent year-on-year inflation in August. The National Bureau of Statistics attributed this mainly to an increase in energy prices.
(MUSIC)
RUI: According to a joint announcement from China’s Ministry of Finance and State Taxation Administration, starting from 1st September 2026, interest, dividends and profit distributions received by foreign nationals employed by foreign-invested enterprises in China will be subject to an individual income tax rate of 20 per cent. This follows the abolishment of a clause that dates back to 1994, under which interest, dividends and profit distributions were tax exempt.
XINHE: Under the new rules, foreign-invested enterprises that pay interest, dividends and profit distributions to foreign individuals should withhold the tax payable, and file it with authorities by the 15th day of the following month.
If a foreign-invested enterprise fails to do this, the individual receiving the interest, dividends and profit distributions should pay the tax due by 30th June of the following year, or within a specified period as notified by the tax authorities.
(MUSIC)
RUI: From 31st August to 2nd September, Chinese Vice Minister of Commerce Ling Ji held talks with Denis Redonnet, deputy director general of the European Commission’s Directorate-General for Trade and Economic Security (DG TRADE), in Beijing.
XINHE: At a briefing held on 3rd September, Ministry of Commerce spokesperson Huang Ling said that the two sides had engaged in detailed, candid and constructive discussions on issues of mutual concern, which included several rounds of technical consultations. She also stated that trade talks between the two parties cannot be unilaterally driven by “one-sided demands” and should instead “address the concerns of both sides on an equal footing”.
RUI: On 31st August, European Chamber President Jens Eskelund met with Deputy Director General Denis Redonnet as part of the visit, during which President Eskelund provided an overview of the key economic and policy trends impacting European companies in China. Both sides also exchanged views on the current direction of travel of EU-China economic and trade relations.
(MUSIC)
RUI: On 22nd September, the European Chamber will publish its European Business in China Position Paper 2026/2027, which comprises 33 individual industry and horizontal position papers that provide constructive recommendations on how China’s business environment can be optimised for all companies.
XINHE: This year’s Executive Position Paper evaluates numerous structural imbalances facing China’s economy and the corresponding impacts on its key trade parters, and suggests practical steps to address them. Such imbalances include the mismatch between supply and demand growth; disparities between China’s written intellectual property rights laws and on-the-ground enforcement; the gap between China’s decarbonisation potential and companies’ ability to decarbonise their operations in the country; and foreign companies’ level of access to public procurement opportunities relative to Chinese competitors, among others.
RUI: Join us on the 22nd September for the official launch of the European Business in China Position Paper 2026/2027. The report will also be available to download for free at the Chamber’s website shortly after its publication.
(MUSIC)
XINHE: 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.