28th May 2025: Jan-Apr FDI
This episode contains segments on:
- January–April total use of FDI;
- Guidelines on increasing financing support for small and micro enterprises;
- EU anti-dumping investigation into tyres from China; and
- January–April industrial profits.
The Chamber released its annual Business Confidence Survey 2025, which you can download here.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
Guidelines on increasing financing support for small and micro enterprises
https://www.nfra.gov.cn/cn/view/pages/governmentDetail.html?docId=1210257&itemId=878&generaltype=1
China total use of FDI, Jan-Apr 2025 (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_1da74ad7af834d71bf76c180da419071.html
EU anti-dumping investigation into tyres from China
https://policy.trade.ec.europa.eu/news/eu-investigates-allegations-dumping-tyres-china-2025-05-21_en
China January-April industrial profits (NBS)
https://www.stats.gov.cn/sj/zxfb/202505/t20250527_1959963.html
European Chamber report: Business Confidence Survey 2025
https://www.europeanchamber.com.cn/en/publications-business-confidence-survey
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 28th May 2025.
(MUSIC)
RUI: Data released by the Ministry of Commerce on 23rd May showed that the actual use of foreign direct investment or FDI in China shrank 10.9 per cent year-on-year in the first four months of 2025.
MARIANN: The pace of decline accelerated only slightly from the first quarter, and was still the second slowest recorded since the end of 2023. However, it is important to note that this relatively moderate dip came on top of a sharp fall in the actual use of FDI in the first four months of last year. Therefore, the total use of FDI in the January-April period was at the lowest level of the past five years, at 321 billion yuan. Almost three quarters of it was utilised in services and the rest in manufacturing.
(MUSIC)
RUI: On 21st May, eight Chinese government entities, including the National Financial Regulatory Administration, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the central bank, jointly issued a new guideline aimed at advancing financial support for small and micro enterprises.
MARIANN: The document contains 23 measures, with the implementation of each to be led by specific departments. Some of the key points listed include the increased allocation of various loan categories, such as first loans, credit loans and medium- and long-term loans, as well as support for small and micro enterprises to carry out equity financing. The guidelines also call for the reduction of financing costs for small and micro firms, including through the management of loan interest rate pricing and the optimisation of loan surcharges. The document lists some key areas for increased support, including foreign trade, private enterprises, science and technology, and consumption.
(MUSIC)
RUI: On 21st May, the European Commission announced the launch of an anti-dumping probe into tyres for passenger cars and light lorries imported from China. The launch of the investigation followed a complaint received from the EU tyre industry that claimed that the dumping of Chinese imports in the EU market causes harm to local tyre producers.
MARIANN: The investigation is planned to be concluded within 14 months, but provisional anti-dumping measures may be imposed within eight months if deemed necessary. The EU has been consistently raising concerns over the imbalance in its trade relationship with China, and made it clear that it would take steps to protect the interests of its market and the competitiveness of its companies. Such concerns have only been amplified by the recent escalation of trade tensions between the US and China, which prompted Chinese exporters to find alternative markets for their products – with the EU seen as an alluring option. To avoid trade frictions, the European Chamber is advocating for the EU and China to promptly address related issues and at the same time, strengthen cooperation in areas where it is beneficial for both sides.
(MUSIC)
RUI: According to data published by the National Bureau of Statistics on 27th May, in the first four months of 2025, profits at larger industrial firms in China increased at the fastest pace since last July.
MARIANN: Industrial profits accumulated during the January-April period rose 1.4 per cent year-on-year. The pace of increase accelerated significantly from the 0.8 per cent recorded in the first quarter, suggesting a surge in profits in April. This largely correlates with industrial production data that showed an increase in output peak in March and stay at a relatively high level in April too.
(MUSIC)
RUI: On 28th May, the European Chamber launched its European Business in China Business Confidence Survey 2025 – the 22nd iteration of its annual survey.
MARIANN: The survey finds that faced with a mixture of challenges—including persistent regulatory and market access barriers, heightened geopolitical tensions, price deflation, low domestic consumption and narrowing margins—Chamber members’ optimism over the near- and medium-term outlook now sits at a record low level. Many firms are continuing to re-evaluate their engagement with the Chinese market, with large numbers cutting costs, toning down expansion plans, shifting investments to other regions and taking steps to silo their China and rest of the world supply chains.
RUI: The full report is now available to download for free from the Chamber’s website. If you are based in Shanghai, and would like to hear more about the experiences of the Chamber’s members, you can also join the local launch of the Business Confidence Survey 2025 on 5th June at our Shanghai office.
(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.