In Portugal’s Continente region, 265,100 women worked as scientists and engineers in 2025, representing 46% of the total workforce in these occupations.

Across the EU, women made up more than half of all scientists and engineers in 10 regions. Four were located in Spain, two in Portugal and one in Greece. The remaining regions were Poland’s Makroregion centralny, Sweden’s northernmost region and France’s outermost regions.

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Most of these areas had relatively small numbers of scientists and engineers overall. Spain’s Noreste region was the largest, with 102,700 women in these occupations, accounting for 51% of its total workforce.

Women’s Representation Varies Across Europe

The figures highlight considerable regional differences in both the number of women working in science and engineering and their share of the overall workforce.

Cyprus remains below the EU average, with women accounting for 37.8% of scientists and engineers. However, this share is broadly comparable to that of Île-de-France, one of Europe’s largest centres of scientific and engineering employment.

AI adoption continues to vary significantly across European businesses, with large companies moving ahead of smaller firms. In 2025, an estimated 50% to 55% of large European businesses were using AI tools, compared with just 17% of small companies.

Adoption rates also differed considerably between countries. Denmark recorded a business AI usage rate of approximately 42%, while Greece and Cyprus both stood at around 9%, highlighting the gap between Europe’s more digitally advanced economies and those where businesses are still at an early stage of adoption.

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To address this divide, Greece has introduced measures aimed at making digital technologies more accessible. These include providing 60,000 licences for digital tools to public-sector employees and delivering training to 30,000 workers. Free training programmes have also been made available to the wider public to improve digital skills, increase familiarity with AI tools and encourage their use across different areas of work.

Computing Infrastructure Becomes A Strategic Priority

Alongside efforts to improve digital skills and encourage business adoption, Greece is investing in the computing infrastructure required to support AI development.

According to Anagnostopoulos, the country’s Daedalus supercomputer, ranked 31st worldwide, was expected to begin providing AI services the following month. The system is designed to provide the computing capacity needed to train and deploy AI models, supporting both research and practical applications.

Greece’s Pharos ecosystem will complement this infrastructure by focusing on AI model development and promoting their adoption. Together, the two initiatives are intended to strengthen the country’s capacity to develop AI technologies and put them to practical use.

Advanced computing infrastructure is also central to Europe’s wider ambitions in artificial intelligence. However, expanding computing capacity alone will not be enough. Governments must combine infrastructure investment with digital skills development, organisational changes and broader access to ensure that businesses, researchers and public institutions can translate AI’s potential into tangible economic benefits.

Denmark is investing an additional 500 million Danish kroner (approximately €67 million) in Gefion, its high-performance AI supercomputer, as the country seeks to expand access to advanced computing and strengthen Europe’s control over critical digital infrastructure.

The funding will support the infrastructure and operations of Gefion at the Danish Centre for AI Innovation, which operates the system, according to an announcement by the Export and Investment Fund of Denmark. Details on how the money will be allocated and when additional computing capacity will become available have not yet been disclosed.

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Gefion Nears Full Capacity As Demand For Computing Grows

Launched in 2024 with 1,528 Nvidia chips, Gefion is now approaching full capacity, according to the Danish Centre for AI Innovation. The additional investment aims to address growing demand for computing power needed to develop and run AI systems.

The funding builds on an initial commitment of 700 million kroner (approximately €94 million) from Denmark’s state investment fund and the Novo Nordisk Foundation, the organisation behind pharmaceutical company Novo Nordisk, known for medicines including Ozempic.

Denmark Seeks Economic Returns From AI Infrastructure

The government aims to turn greater access to computing power into practical economic benefits, including new products, businesses and jobs.

“This gives Danish companies and researchers more computing power to translate good ideas into new solutions, companies and jobs,” said Martin Lidegaard, Denmark’s Minister for Business and Competitiveness. He added that the investment would strengthen national competitiveness and help ensure that “ownership of the technology of the future is not left to others.”

The initiative will also support AI adoption by businesses and public institutions while helping them retain control over sensitive data. Danish technology company Netcompany, which develops and operates public-sector IT systems, including systems for NHS England, is joining the centre’s investors. It will provide software for access management, monitoring and security.

Europe Steps Up Investment In AI Computing Capacity

Denmark’s investment comes amid wider European efforts to gain greater control over the infrastructure and organisations behind AI development.

The UK invested £225 million (approximately €269 million) in an AI research supercomputer in 2023, while Finland hosts LUMI, a supercomputer funded by the EU and participating countries at a total lifetime cost of more than €200 million.

In July, the European Commission invited proposals for up to seven AI gigafactories, large-scale data centres designed to train and run advanced AI models. The initiative could receive up to €10 billion in funding from the EU and national governments.

“Europe must be able to do much more itself, and Denmark must contribute to European technological independence, not least so that we can regulate and develop technology based on democratic values,” said Christina Egelund, Denmark’s Minister for Research, Education and Digitalisation.

Gefion’s expansion reflects a broader strategic priority: access to computing power is becoming essential for AI research and commercial development. For Denmark and its European partners, the challenge is to build that capacity while ensuring it supports local economic priorities, public institutions and democratic oversight.

Cyprus is working to shed its image as a summer-only escape. A three-day campaign by Wizz Air, tourism officials and airport operator Hermes Airports brought more than 100 Spanish journalists and content creators to the island in November, with the aim of showcasing its appeal beyond the peak travel season.

The initiative, called “Let’s Get Lost,” began in Barcelona on November 6. Participants boarded a special Wizz Air flight without knowing its destination; the surprise was revealed when the aircraft landed at Larnaca International Airport that evening. The group then spent November 7–9 exploring the island.

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A Campaign Built Around Discovery

The itinerary was designed to introduce participants to Cypriot culture, traditions, food and landscapes through experiences beyond the familiar beach-holiday format. In the traditional village of Lefkara, guests encountered local hospitality and took part in workshops highlighting traditional crafts and practices.

The programme also included wine tasting at Dafermou Winery and a sunset gathering at Cap St George Hotel and Resort in Paphos. The events offered a chance to experience the island’s coastal scenery and November sunshine—an important part of the campaign’s case for visiting outside summer.

Participants stayed at four hotels: Golden Bay Beach Hotel, Radisson Beach Resort Larnaca, Sandy Beach Hotel and Lordos Beach Hotel & Spa. The Deputy Ministry of Tourism co-organised the initiative, Hermes Airports sponsored it, and the Larnaka Tourism Board helped arrange accommodation.

Turning Media Reach Into Tourism Demand

The campaign’s strategy extended beyond the trip itself. By bringing Spanish journalists and digital creators to Cyprus, Wizz Air and its partners sought to generate coverage and social media content that could introduce the island to new audiences and encourage travel during quieter months.

“Bringing Let’s Get Lost to Cyprus was a fantastic opportunity to showcase a destination we believe in so deeply,” said Andras Rado, Wizz Air’s head of communications. He described Cyprus as “a perfect holiday spot all year round” and said the November visit gave guests the chance to discover its culture, hospitality and landscapes without preconceived ideas.

Rado thanked the airline’s Cypriot partners and said Wizz Air was committed to investing in the market and making travel opportunities accessible to more passengers. The airline also pointed to its recently opened Madrid route, which adds to air links between Cyprus and Spain.

Strengthening Cyprus’ Year-Round Positioning

Deputy Minister of Tourism Kostas Koumis said the visit offered international media and content creators an opportunity to experience the range of activities available in Cyprus throughout the year, from heritage and traditional villages to gastronomy and natural scenery. He said partnerships of this kind support the country’s effort to build its profile as a year-round destination.

Maria Kouroupi, director of aviation development, marketing and communication at Hermes Airports, called the campaign an innovative way to promote Cyprus abroad. She said Spain represents significant potential for the island and that initiatives like this could raise awareness among Spanish travellers and deepen connections between the two countries.

The campaign reflects a broader tourism-marketing challenge: translating a destination’s seasonal appeal into demand across the full calendar. For Cyprus, improved air connectivity and international exposure can help support that shift. Wizz Air said it would continue investing in the Cypriot market, while the coverage and content generated by the Spanish participants are expected to introduce audiences to reasons to visit beyond the traditional summer period.

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

Cyprus could receive until 2036 to comply with higher European Union minimum cigarette taxes under a proposed compromise supported by Nicosia. However, the plan failed to secure unanimous approval on November 9 after Malta opposed the reforms, despite support from the other 26 member states.

EU finance ministers ended negotiations in Brussels without an agreement. For Cyprus, the proposed transition period would allow tobacco duties to increase gradually rather than meet the new EU thresholds by 2032.

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Cyprus Backs A Longer Transition Period

Finance Minister Makis Keravnos supported the latest compromise presented by the Irish presidency, describing it as balanced and flexible enough to reflect national circumstances.

According to the Cyprus Finance Ministry, the proposal builds on negotiations during Cyprus’ presidency of the Council earlier this year.

Under the plan, the EU minimum excise duty on cigarettes would rise from €90 per 1,000 cigarettes currently to €140 in July 2028, €170 in 2030 and €200 in 2032. By 2032, the duty would generally also have to represent at least 60% of the weighted average retail price, subject to exemptions.

These are minimum tax requirements, not automatic retail price increases. The impact on consumers would depend on national tax decisions and how much of the additional cost tobacco companies pass on.

Ten countries, including Cyprus, Greece, Italy, Bulgaria, Spain, Croatia, Luxembourg, Portugal, Romania and Slovenia, could receive an extension until January 1, 2036. The additional time would apply where meeting the proposed thresholds requires average annual excise increases of more than 2.35% compared with 2025 levels. The transition would also cover fine-cut tobacco.

The extension remains subject to negotiations. Until an agreement is reached, there will be no immediate change to cigarette taxation in Cyprus.

New EU Taxes For Alternative Nicotine Products

The reform would also introduce common minimum duties for e-cigarettes, heated tobacco and nicotine pouches.

Under the compromise, e-cigarette liquids, including nicotine-free products, would initially face minimum taxation of either 20% of the retail price or €0.20 per millilitre. Nicotine pouches would be taxed from 2028 at 10% of the retail price or €30 per kilogram.

The Council negotiating document sets out further increases for nicotine pouches: 25% or €40 per kilogram in 2030, rising to 50% or €50 per kilogram in 2032.

The proposed rates initially faced objections from Finland, which considered them too low, and Estonia, which opposed provisions allowing future adjustments without unanimous approval. Both countries eventually backed the revised compromise after the Irish presidency offered to revisit pouch taxation and the inflation adjustment mechanism.

Malta Blocks Agreement

Malta remains the only member state opposing the proposal. Finance Minister Clyde Caruana argues that the minimum rates are too high compared with current Maltese duties and could impose a disproportionate economic cost.

He has also questioned the extent to which EU legislation should restrict national tax policy. Although Malta supports the reform’s broader objectives, it considers the current terms unacceptable.

EU tax legislation requires unanimous approval, meaning one member state can block an agreement. Irish Finance Minister Simon Harris, who chaired Monday’s meeting, said negotiations would continue in December, while welcoming the support secured from 26 countries.

Changes To Cross-Border Tobacco Purchases

The compromise also proposes lowering the indicative quantity of cigarettes for personal consumption carried across EU borders from 800 to 200.

This would not automatically prohibit travellers from carrying more than 200 cigarettes. Customs authorities would continue assessing whether tobacco was intended for personal use or resale, taking individual circumstances into account.

Public Health And Revenue Objectives

The reform aims to update EU tobacco taxation rules that have not undergone a major revision since 2010, despite changes in smoking habits and the emergence of alternative nicotine products.

When the European Commission presented its original proposal in July 2025, it estimated that the changes could generate an additional €15 billion in annual EU tax revenue and reduce healthcare costs by around €6 billion.

Tobacco causes almost 700,000 deaths annually in the EU, where smoking prevalence remains around 24%. The Commission aims to reduce tobacco use to below 5% of the population by 2040.

For Cyprus, the outcome of the negotiations will determine whether higher EU minimum tobacco duties can be introduced over an extended transition period ending in 2036.

Cyprus has no shortage of university graduates, yet employers continue to struggle to fill vacancies, while many qualified workers are employed in roles that do not fully use their skills.

This contradiction is highlighted in CYEmployers, the country’s first national employers’ skills survey, published by the Education Ministry. The findings reveal a persistent mismatch between the skills businesses need, the jobs they offer and the capabilities available in the labour market.

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Among private employers with vacancies, 71% reported difficulty filling certain positions. Meanwhile, 34% of private employers that had recruited recent graduates hired them for roles that did not require a university degree. The figure rose to 58% in the public sector. In addition, 45% of private employers and 69% of public-sector managers said some employees had skills exceeding their job requirements.

Recruitment Challenges Go Beyond A Lack Of Qualifications

Conducted by PwC Cyprus in cooperation with the Department of Higher Education, the survey gathered responses from 1,395 private-sector organisations and 221 senior public-sector officials between May 2024 and January 2025. The findings were published on November 9.

Among private employers struggling to recruit, 68% cited insufficient interest in available positions, 58% a shortage of applicants and 53% a lack of candidates with the right skills.

Public-sector managers reported similar challenges: 50% pointed to insufficient interest, 42% to unattractive employment conditions, including pay, and 39% to difficulties finding suitably skilled applicants.

Recruitment difficulties were most common for professionals, technicians, service and sales workers, and clerical employees. The findings suggest that the problem is not simply a shortage of qualified candidates, but also the ability of employers to attract them.

Employers Need More Than Technical Skills

Higher education qualifications accounted for an average of 48% of private-sector workforces and 71% of public-sector workforces. However, employers identified gaps in both practical and interpersonal skills.

Among private businesses facing recruitment difficulties, 43% said candidates lacked willingness to learn, 35% cited communication skills and 31% time management. Teamwork and analytical or critical thinking were each mentioned by 28%.

Public-sector managers also highlighted communication, teamwork, time management and willingness to learn (37% each), alongside initiative (42%) and complex problem-solving (39%).

Most employers considered graduates from Cypriot higher education institutions at least moderately prepared for work. However, only 33% of private employers rated them as well or very well prepared, compared with 49% of public-sector respondents.

Graduates received stronger assessments for written communication, basic numeracy and digital skills, but weaker ratings for leadership, initiative and complex problem-solving.

Graduates Face A Shortage Of Work Experience Opportunities

Seven in 10 private employers considered previous experience a major recruitment criterion. Yet 76% offered neither internships nor work placements during the period covered by the survey. Only 15% offered internships and 12% provided placements to students or graduates.

Among businesses offering these opportunities, 30% did not pay participants. Nevertheless, 31% later recruited someone who had completed an internship or placement with them.

Private employers also prioritised enthusiasm for the job (63%) and relevant technical skills (59%). In the public sector, formal qualifications were the leading criterion (73%), followed by technical skills (67%) and previous experience (66%).

Vacancies And Skills Gaps Affect Organisational Performance

Recruitment difficulties are putting additional pressure on existing employees. Among organisations reporting an impact from hiring challenges, 80% of private-sector and 85% of public-sector respondents cited heavier workloads.

Overall, 89% of private employers and 95% of public-sector respondents said recruitment difficulties affected organisational performance to some extent, including daily operations and service quality.

Skills gaps also persist among existing employees. Employers estimated that 14% to 23% of private-sector staff and 12% to 33% of public-sector staff, depending on occupational category, did not have full proficiency in the skills their jobs required.

At the same time, 61% of private-sector employees and 91% of public-sector employees worked in organisations reporting at least some underuse of staff skills.

Employers Expect Shortages To Continue

Over the next five years, 56% of private employers and 63% of public-sector managers expect skills shortages. A quarter of private employers and 21% of public-sector respondents anticipate severe gaps.

Private businesses are particularly concerned about interpersonal, organisational and specialised technical skills. Public-sector organisations expect greater shortages in digital capabilities: 60% of employees worked in organisations anticipating such gaps, compared with 11% in the private sector. The figure reached 86% across the wider public sector and 43% in central government.

Both sectors identified interpersonal skills as their main training priority, cited by 36% of private employers and 40% of public-sector respondents. Digital skills ranked second, at 22% and 26%, respectively.

Connecting Education With Labour Market Needs

The findings point to the need for closer cooperation between universities and businesses, more practical work experience opportunities and stronger training for existing employees. Employers may also need to reconsider job requirements, career progression and employment conditions to attract suitable candidates.

Cyprus’s challenge is not simply to produce more graduates, but to connect education more closely with labour market demand and make better use of the talent already available.

The survey reflects employers’ assessments rather than independent tests of workers’ abilities. Differences in sampling and weighting also mean that comparisons between the public and private sectors should be treated with caution.

Luxury tourism is becoming an increasingly important contributor to Italy’s economy. In 2025, five-star and five-star luxury hotels generated an estimated €10.4 billion in direct tourist spending, accounting for 17.3% of the hotel sector’s total turnover of more than €60 billion. Spending per overnight stay was also significantly higher: €702 at luxury hotels, compared with €209 across the hotel sector as a whole.

The figures come from a Demoskopika study previewed by ANSA. They point to a segment growing much faster than Italian hospitality overall. Between 2008 and 2025, overnight stays in luxury hotels increased by 111.1%, while the figure for all hotel establishments rose by 14.5%.

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Five-star properties recorded nearly 14.9 million overnight stays and more than 4.9 million arrivals in 2025. Compared with 2024, arrivals grew by 5% and overnight stays by 5.7%. The growth highlights the importance of international visitors with higher spending power, but also reveals how concentrated luxury tourism remains geographically.

Rome Leads Italy’s Concentrated Luxury Tourism Market

Demoskopika’s Elite Index (Exclusive Luxury & International Tourism Evaluation) identifies Lazio, Trentino-Alto Adige, Campania, Valle d’Aosta and Sardinia among Italy’s leading regions for luxury tourism.

Lazio generated the highest estimated direct spending, at €2.3 billion in 2025, or 21.7% of the national total. Trentino-Alto Adige followed with €1.7 billion, ahead of Veneto (€1.4 billion), Lombardy (€1.3 billion) and Tuscany (€1 billion).

At provincial level, Rome accounted for 19.7% of all overnight stays in five-star hotels. Together, Rome, Bolzano, Venice, Florence and Milan represented 53.4% of the national total. Across the 17 leading luxury destinations identified by the study, the share reached 79.2%.

The geographical concentration is also reflected in hotel supply. Twenty-five Italian provinces have no five-star properties. In 2025, Italy had 809 hotels in this category, 38 more than a year earlier, offering nearly 110,000 beds. Despite the growth, five-star hotels account for just 4.8% of the country’s total hotel capacity.

Italy Competes For Europe’s High-Spending Travellers

Italy’s luxury tourism growth comes amid intensifying competition for international visitors. The country remains one of Europe’s largest tourism markets by volume, recording approximately 535 million overnight stays across all accommodation types in 2025, according to Eurostat. Spain followed with 513 million, France with 472 million and Germany with 440 million. Together, the four countries accounted for more than 60% of all overnight stays in the EU.

Measured against population, however, Spain recorded 10.4 overnight stays per resident, compared with 9.1 in Italy and 6.9 in France. This suggests Italy has room to increase the value generated per visitor and attract more high-end stays.

Investment data underline the competition. A 2025 European hotel-market report by BNP Paribas Real Estate found that Spain, the UK, France and Italy together accounted for more than half of European hotel investment. Italy attracted around €1.8 billion, or 9% of the European total, compared with €3.3 billion in Spain (16.4%) and 14.9% in France. The UK led the group with €4 billion.

Hotel performance also points to stronger demand at the higher end of the market. European revenue per available room (RevPAR) increased by 3.8% in the upscale segment in 2025, while budget hotels recorded a 1.9% decline. The gap suggests that demand for higher-end accommodation has been more resilient, despite continued pressure on household purchasing power.

Extending Luxury Tourism Beyond Peak Season

The economic benefits of luxury tourism remain unevenly distributed. According to Demoskopika, 11 international markets account for 62.2% of foreign overnight stays in Italian hotels: Germany, the United States, the UK, France, Switzerland, Austria, Spain, the Netherlands, Canada, Australia and Japan.

Visitors from these countries are estimated to have generated €21.4 billion in turnover across all hotel categories in 2025, including different components of tourist spending. Germany was the largest contributor at €6.39 billion, followed by the United States at €4.69 billion.

Demoskopika identifies opportunities beyond expanding the number of luxury hotels. Better use of existing capacity and a longer operating season could help spread the benefits more widely. Occupancy at high-end properties remains below the national average of 37.1%, particularly in southern Italy, where accommodation supply is newer or more seasonal.

Improved transport connections, supporting services and efforts to reduce seasonality will be important in extending luxury tourism beyond established art cities and resort destinations. Italy is already attracting high-spending travellers, but its next challenge is to turn that demand into more consistent economic benefits across regions and throughout the year.

China’s trade surplus has exceeded $1 trillion in the first 10 months of the year, as exports continue to grow despite persistent weakness in domestic demand. The figures come just ahead of an expected meeting between Chinese President Xi Jinping and U.S. President Donald Trump at the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen, bringing trade tensions back into focus.

Exports Drive China’s Trade Surplus Higher

Exports rose 35.2% year on year to $412.3 billion last month, according to China’s General Administration of Customs. Imports increased by 41.6% to $307.1 billion. Despite the faster growth in imports, the trade surplus reached $1.04 trillion between January and October.

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China is now on course to surpass last year’s record surplus of $1.2 trillion. While the $1 trillion mark was reached in November last year, it was crossed earlier in 2026.

“Exporters have been the key driving force behind China’s economy this year,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. He expects export performance to remain strong in the near term and does not anticipate a significant change in China’s macroeconomic policy stance before the end of the year.

Demand for AI-related products, including computer chips, data-centre servers and networking equipment, has also supported export growth. Rising investment in AI infrastructure is creating new demand for manufacturers and technology suppliers, strengthening China’s export momentum.

Trade Growth Raises Stakes With Washington

Exports to the United States surged 32.9% last month, according to customs data. Xi and Trump are expected to meet at the APEC summit in Shenzhen on November 18 and 19, following several efforts to preserve a fragile truce in the countries’ trade conflict. These have included an extension of their trade arrangement and talks in Washington in September.

The summit could also bring Xi, Trump and Russian President Vladimir Putin together for trilateral discussions. However, the economic focus is expected to remain on U.S.-China relations and their implications for global trade.

China’s Trade Surplus With The EU Widens

Trade tensions are also increasing between China and the European Union. Beijing’s trade surplus with the bloc reached $310.7 billion in the first 10 months of the year, compared with $241.6 billion over the same period in 2025.

The widening imbalance is adding pressure on Brussels to protect European industries from what critics describe as unfair competition from lower-cost Chinese imports. Last month, talks in Beijing between EU trade chief Maroš Šefčovič and Chinese Commerce Minister Wang Wentao resulted in an agreement to limit exports of Chinese hybrid vehicles to Europe.

Weak Domestic Demand Leaves China Reliant On Exports

Strong overseas sales are helping offset subdued domestic consumption, which has remained weak for several years, while the property sector continues to struggle. Inflation data released on Monday also showed that price growth remains well below the government’s target of around 2%.

Exports are therefore playing a central role in helping Beijing meet its official economic growth target of 4.5% to 5.0% this year, the lowest such target in decades.

However, the record trade surplus also carries risks. Growing Chinese exports are intensifying concerns among trading partners about pressure on domestic manufacturers, potentially leading to new trade barriers, negotiations and further political friction.

Cyprus can help connect Europe with the Middle East and Asia—but turning that geographic advantage into lasting economic value will require stronger regional cooperation, trade links and investment in infrastructure, President Nikos Christodoulides said Monday.

Addressing the Economists Enterprise 22nd Annual Cyprus Summit, Christodoulides pointed to opportunities in shipping, energy, tourism, technology and digital services across the Eastern Mediterranean. He also warned that geopolitical tensions were disrupting trade, energy supplies and investment prospects.

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Economic resilience, he said, now depends not only on national security but also on the ability to absorb external shocks, diversify energy sources and trading relationships, protect critical infrastructure and attract investment.

A Strategic Crossroads For Trade And Investment

The Eastern Mediterranean’s position between Europe, the Middle East, North Africa and Asia gives the region significant commercial potential, Christodoulides said. Cooperation, he argued, could convert that geographic advantage into practical economic opportunities.

“Energy interconnections, trade corridors and port infrastructure are not simply technical or economic projects,” he said, adding that they also carry political and geostrategic significance. Decisions made now, he warned, will influence the region’s economic prospects and geopolitical balance for years to come.

One initiative he highlighted was the India-Middle East-Europe Economic Corridor, or IMEC. The corridor could improve trade and transport connections while opening new avenues for investment and economic security. “Our country has an important role to play in its implementation,” he said.

Building Links With India

Christodoulides also pointed to the anticipated signing of an EU-India Free Trade Agreement in Brussels next December, on the sidelines of the European Council and in the presence of Indian Prime Minister Narendra Modi. He said the agreement would make progress on IMEC more urgent by creating the potential to deepen commercial ties between Europe and India.

Cyprus is seeking to strengthen its position in that relationship. Christodoulides cited his recent visit to India, the opening of a commercial office in Mumbai and ongoing discussions to improve air connectivity between the two countries. Nicosia has also proposed an IMEC Group of Friends within the European Union to promote the corridor and build broader European support.

Geopolitical Risks Put Trade Routes In Focus

The president’s remarks came amid rising geopolitical uncertainty, with consequences that extend beyond the countries directly involved. He cited tensions around the Strait of Hormuz and Bab el-Mandeb, as well as Russia’s continuing invasion of Ukraine, as developments affecting European security, energy flows and international trade.

Obstructing or weaponizing critical commercial passages, he warned, can disrupt supply chains and inflict far-reaching economic costs. He also stressed that sovereignty, territorial integrity and respect for international law must be upheld consistently.

Europe, he said, needs to reinforce its resilience, competitiveness and strategic autonomy while assuming greater responsibility for its security. Strategic autonomy, he clarified, should not mean isolation; it should mean building a stronger Europe that can work effectively with international partners.

Cyprus Seeks A Broader Regional Role

Within that framework, Cyprus is aiming to move beyond what Christodoulides described as a traditionally single-issue foreign policy. The country wants to be seen as a stable and dependable bridge between the European Union and the wider Middle East and Gulf region.

“As a country, we seek to be part of the solution and not part of the problems and challenges in our region,” he said. Cyprus’s positive agenda, he added, is not directed against any country; it is intended to identify shared interests and create conditions for mutual benefit.

As an example, he cited an informal European Council meeting held in Cyprus in April. For the first time in that format, EU leaders and representatives of European institutions met with leaders from the wider region, including Egypt, Jordan, Lebanon, Syria and Gulf Arab countries. Discussions focused on specific projects for regional cooperation.

Christodoulides said the meeting showed how Cyprus could help facilitate dialogue between Europe and its neighbours—and turn diplomatic engagement into practical cooperation.

Cooperation On Climate And Resilience

The president also highlighted the Cyprus Regional Initiative on climate change, which brings together 13 countries to improve their collective ability to adapt to and mitigate climate impacts. He framed the initiative as part of a broader effort to strengthen regional resilience amid challenges that increasingly affect economic development and long-term stability.

The Eastern Mediterranean, Christodoulides said, faces a choice: remain defined by crises and competition, or develop into a region of meaningful cooperation, growth and shared benefit. Cyprus will continue to draw on its relationships with neighbouring countries, its EU membership and its geographic position to promote dialogue, he said.

“We extend a hand of cooperation to all those who wish to participate in this effort and become partners in the goal of building a region that is safer, more interconnected, more resilient and more prosperous,” he concluded.