European authorities will be encouraged to buy more domestic goods and services when they spend public money under the EU latest effort to counter China’s economic might. In a further “Buy European” plan, the European Commission published proposals on Wednesday for a sweeping overhaul of EU public procurement rules. National authorities and public bodies, such as schools and hospitals, will be encouraged to buy goods and services made in Europe but, unlike earlier plans to promote domestically manufactured clean tech, there will be no binding “made in Europe” quotas. Brussels…
Tag: Chinese economy
China’s demise was gleefully predicted by the west – meanwhile, it built an AI revolution | Larry Elliott
Almost from the moment it began, the end of the Chinese economic miracle has been much anticipated. Thick and fast, the books have come explaining how it will end badly. Overinvestment. A country wallowing in debt. The collapse of the property market. Political repression. The demand for democracy from a growing middle class. All have been put forward as reasons for the inevitable terminal crisis. Even those impressed by the country’s rapid growth took comfort from the notion that the west would continue to dominate advanced manufacturing while China would…
Is the US actually too chicken to take on China for trade?
Since China offered a truce in the trade war last October following its threat to deprive the United States of rare-earth magnets, the Trump administration has been happy to stop escalating. After all, imports from China have been falling, down by 40% in the year to June, compared with the same period in 2024. Best to declare victory and call it a day. But the US hasn’t won this battle – and there’s strong evidence to show it’s too chicken to really try. Last week the White House was forced…
China’s economy showing signs that slowdown may be extending
China’s economy is showing signs of extending a slowdown with a slump in industrial output and retail sales in July, adding to pressure on Beijing to intervene with measures to support activity. After the world’s second largest economy posted one of its lowest quarterly growth readings on record in the three months to June, the latest figures suggest it continued to falter in July. Factory output grew 4.5% from a year earlier last month, compared with 5.3% in June, official figures from the National Bureau of Statistics (NBS) showed on…
China’s economy grows at 4.3%, one of its lowest rates on record
China has posted worse-than-expected growth figures for the three months to June as its economy expanded by just 4.3% – one of its lowest quarterly readings on record. The rate, which came in under the government’s target of 4.5% to 5%, was one of the weakest since reporting on official quarterly GDP figures began in the early 1990s. The last period when growth was lower was the final quarter of 2022 when the country was still under its three-year period of Covid-19 restrictions. The data released on Wednesday by the…
China’s monthly car exports top 1m for first time as overall trade soars
China’s monthly car exports topped 1m for the first time in June as overall overseas shipments from the world’s second biggest economy rose 27%. Official Chinese customs data showed that a stronger-than-expected trade performance kept China on track to match or beat last year’s record trade surplus of $1tn (£748bn), achieved despite Donald Trump’s curtailed tariff war. Sales of Chinese brands ranging from BYD to Jaecoo are booming, eating into the market shares of long-established brands, particularly in Europe. Analysis by the Mercator Institute for China Studies (Merics) in Berlin…
China’s graduate glut: millions enter a job market with little use for them
This time of year is graduation season in China: traditionally a bittersweet period of solemn goodbyes and family celebrations as university students transition from campus life into adulthood. Now it also increasingly represents trepidation about the future. Each year, millions more graduates are thrust into China’s already saturated jobs market. The situation for this year’s cohort, flooding into an increasingly crowded pool of applicants fighting for an insufficient number of positions, is arguably the bleakest yet. Jasmine, a 22-year-old who studied accounting in Shanghai, is among this year’s record 12.7…
UK to halve tariff-free steel imports to counter glut of cheap Chinese metal
The UK government will halve the amount of tariff-free steel imports allowed in an attempt to counter a global oversupply of cheap Chinese metal and bolster its beleaguered local industry. New “safeguards” will be introduced on 1 July and will coincide with similar new limits being introduced by the EU for the same purposes. At the same time tariffs on steel imports above the duty-free quotas will be doubled to 50% of the product’s value. The quotas replace existing pre-Brexit rules that set import levels across the EU. The UK…
Germany urged to stop admiring Beijing and wake up to ‘China Shock 2.0’
Germany must stop admiring China’s success in the EU or it will sleepwalk into the kind of deindustrialisation the US experienced 25 years ago, a leading Brussels thinktank has said. With China’s surplus with Germany having doubled between 2024 and 2025 from $12bn (£9bn) to $25bn, creating a $94bn trade imbalance, the Centre for European Reform (CER) said Europe’s largest economy risked a repeat of what happened in the US in 2001 when a sudden surge in imports permanently hollowed out towns in the American midwest. “China Shock 1.0” not…
Fake lawyers, scientists, chefs and punters: meet the ‘white monkeys’ paid to make Chinese businesses look global
Piers had been in China for all of two days in 2009 when he was used as a “white monkey” for the first time. He had travelled to a village in Suzhou, Jiangsu province, to attend a friend’s wedding and had stopped in the village to try a special crab dish at a small restaurant. Weeks later, a Chinese guest who had been at the wedding told him the restaurant had had an uptick in business because the locals had heard that a laowai, a foreigner, had been seen dining…