This episode covers segments on:

• Position Paper launch in Shanghai with Chamber representatives’ recommendations to companies and Chinese authorities; and
• New stimulus measures to support the financial, property and capital markets.

Also, listeners are invited to join an event in Shanghai on 14^th October to hear compliance advice on the European Union’s Corporate Sustainability Due Diligence Directive.

On 11^th September, the Chamber published its European Business in China Position Paper 2024/2025. In this special edition, we have asked the panellists that attended the Position Paper launch to share their one key recommendation that, if acted on, would significantly improve the business environment for European firms in China. Speakers include European Chamber’s President Jens Eskelund, Vice President Stefan Bernhart, States’ Representative Peter Ling-Vannerus, and Board Member Ninette Dodoo.

This episode contains segments on:

• The EU-China Cross-Border Data Flow Communication Mechanism launch;
• August data released for China’s official Purchasing Managers’ Index; and
• Preliminary ruling in the anti-dumping probe of EU brandy imports.

Also, listeners are invited to join the launch of the European Business in China Position Paper 2024/2025 on 11^th September in Beijing.

This episode contains segments on:

• Shanghai’s plan in extending policies trialled in free trade zones to new innovation zones;
• China’s anti-subsidy probe into EU dairy products;
• Industrial profits from January to July;
• Budget spending and revenues generated through land sales from January to July.

Also, listeners are invited to attend the event on 4^th September online or in person in Beijing on China’s economic prospects and potential opportunities for businesses.

This episode contains segments on:

• China’s actual use of foreign direct investment from January to July;
• China macroeconomic indexes in July;
• 2024 negative list for foreign investment access and measures to reach 2024 economic targets;
• European Commission’s draft definitive findings in anti-subsidy probe into battery electric vehicles imported from China.

Also, listeners are invited to attend the HR training for building a diverse and inclusive team on 29^th August online or in person in Beijing.

This episode contains segments on:

• China’s new guideline on green transition;
• Foreign trade data in July;
• Consumer and producer prices in July; and
• Rhodium Group & Atlantic Council’s China Pathfinder Q2 2024 update.

Also, listeners are invited to join the event to hear the impact of EU elections on EU-China relations and European business in China, on 22^nd August online or in Shanghai.

This episode contains segments on:

• Politburo meeting on H2 economic work and measures to boost consumption;
• Official and Caixin China Purchasing Managers’ Index in July; and
• Five-year action plan to increase urbanisation.

The July/August edition of the Chamber’s bimonthly magazine, EURObiz, is available to download from the Chamber’s website.

This episode contains segments on:

• Measures to upgrade hotel services for foreign nationals;
• China’s industrial profits in the first half of 2024;
• Analysis of national electricity supply and demand in the first half of 2024; and
• China’s decision to stop publishing daily global stock flows.

Also, listeners are invited to an event on 7^th August, either online or in Shanghai, on the implications of the Third Plenum for European businesses in China.

Contact:

We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.

Follow the European Chamber on LinkedIn, Twitter, WeChat (europeanchamber), and sign up for our newsletter here, to get notified on new episodes.

Read more:

Notice on Several Measures to Provide High-level Services to the Outside World and Facilitate the Accommodation of Overseas Personnel

https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2024/art_6e5fd351d24c460cad01512ce52d3f83.html

China industrial profits, H1 (NBS)

https://www.stats.gov.cn/sj/zxfb/202407/t20240727_1955855.html

Analysis and Forecast Report on the National Electricity Supply and Demand Situation in the First Half of 2024 (China Electricity Council)

https://cec.org.cn/detail/index.html?3-335294

China to Stop Publishing Daily Global Stock Flows in Mid-August (Bloomberg)

https://www.bloomberg.com/news/articles/2024-07-29/china-to-stop-publishing-daily-global-stock-flows-in-mid-august

European Chamber event:

https://www.europeanchamber.com.cn/en/upcoming-events/26378/_Hybrid_China_s_New_Economic_Blueprint_Unveiled_During_the_Third_Plenum_Implications_for_European_Business_in_China

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 31^st July 2024.

(MUSIC)

RUI: On 25^th July, China’s Ministry of Commerce, along with seven other ministries and government organisations, issued a joint notice containing eight measures aimed at facilitating accommodation and improving other services for travellers from overseas. 

MARIANN: The Notice was released two months after an official statement released in May that called on hotels across the country to accept foreign guests. The May statement was issued in response to online complaints from foreign travellers who reported having been refused rooms on the grounds that the hotels did not have the necessary qualification to provide accommodation to foreign nationals or simply did not know what the required procedure was.

RUI: The eight measures contained in the notice specify some of the steps to be taken by local authorities, hotel operators and online registration platforms in order to optimise services for foreign travellers. These steps include preparing front-desk personnel to handle registration and other services, installing signs in English and improving the foreign language version of hotel booking software and other, related network operation platforms.

(MUSIC)

RUI: Profits made by larger industrial firms in China grew 3.5 per cent in the first half of 2024 compared to the same period last year.

MARIANN: Data released by the country’s statistics bureau on 27^th July showed that industrial profits totalled at over 3,500 billion yuan in the January-June period. Over 70 per cent of these profits were generated in the manufacturing sector. The mining sector generated over 17 per cent, while utilities providers about 10 per cent of the total.  In June alone, the year-on-year rate of growth in profits was 3.6 per cent.

(MUSIC)

RUI: According to a report released on 24^th July by the China Electricity Council, in the first half of 2024, while the country’s power consumption increased compared to the same period last year, for the first time the proportion of coal power fell below the combined share of wind and solar energy.  

MARIANN: Total electricity consumption rose 8.1 per cent year-on-year in the January-June period. Power consumption jumped significantly in high-tech and equipment manufacturing, and in the internet data services sector. The latter’s electricity consumption surged 33 per cent, which the Council attributed to fast-paced development in areas such as mobile internet, big data and cloud computing. The report forecasts that in 2024, China’s total energy consumption will grow 6.5 per cent compared to last year. Meanwhile, the installed capacity of wind and solar energy production is expected to surpass 40 per cent of the country’s total capacity by the end of the year.

(MUSIC)

RUI: Bloomberg reported on 29^th July, that starting from mid-August China will further curb access to information on its stock market flows.

MARIANN: Bloomberg cited a statement from the Shanghai and Shenzhen exchanges issued on 26^th July, which said that from 18^th August, they will no longer disclose end-of-day data on global stock flows. The publication of real-time flows data was already suspended in May. Access to important information related to the economy has already been significantly curtailed, especially for foreign entities. Without access to such data and related business intelligence, companies are increasingly unable to make well-informed investment decisions in China, making them increasingly likely to look to other jurisdictions that offer more transparency.

(MUSIC)

RUI: On 18^th July, the Central Committee of the Chinese Communist Party concluded its Third Plenum, a major conference held every five years to chart the overall direction of the country’s long-term economic and social policies. 

MARIANN: At this year’s Third Plenum, China’s leadership has again acknowledged many of the headwinds facing the country’s economy, including risks in the real estate sector and local government debt, and signalled its intent to deepen reforms. The resolution passed at the session highlights the task of deepening reform to advance the country’s modernisation. At the same time, it reiterates the need to balance economic recovery against national security concerns, while maintaining social stability.

RUI: Join us on 7^th August online or in person in Shanghai to learn about the Third Plenum’s implications for European businesses operating in China. Experts and industry players will discuss market opportunities, potential risks and challenges, and strategies to navigate China’s evolving business landscape. They will also share their views on the future of China’s economic opening, as well as geopolitical considerations, and their impact on specific sectors.

(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.

This episode contains segments on:

• The communique issued at the Third Plenum;
• The World Trade Organization’s ninth review of China’s trade policy; and
• Youth unemployment data in June.

Also, the European Chamber joined a roundtable on Large-scale Equipment Renewals and Trade-in of Consumer Goods hosted by the Vice Minister of Commerce Ling Ji on 17^th July. Listen to learn more.

This episode contains segments on:

• Foreign trade data in June and the first half of 2024;
• China’s GDP and macroeconomic indicators in the second quarter this year;
• Temporary policy adjustments in six Chinese cities to boost foreign investment in the service sector;
• European Commission anti-dumping tariffs on Chinese titanium dioxide imports.

Also, if you listen to China Dispatches, the podcast will be dedicating three future episodes to exploring some of the findings in the Business Confidence Survey 2024 on carbon neutrality, market access and competition with members from relevant industries.