Daily Management Review

Chinese Premier Outlines New Regulations To Make Market Access Easier To Global CEOs


Chinese Premier Outlines New Regulations To Make Market Access Easier To Global CEOs
Chinese Premier Li Qiang addressed a gathering of international CEOs and Chinese policymakers, and stated that that China will closely examine issues related to market access and cross-border data flows and will shortly release new rules in these areas.
"We cordially welcome companies from all countries to invest in China and deepen their foothold in China," Li stated.
Li stated at the China Development Forum in Beijing that China is also working to advance developing new industries like biological manufacturing and would accelerate the growth of artificial intelligence and the data economy.
Beijing loosened certain restrictions on foreign investment on Tuesday following an almost 20% decline in inflows of capital during the January–February quarter. Foreign companies operating in China were concerned when China's cyberspace authority loosened several security regulations on data exports on Friday.
Li told the two-day symposium that China's inflation rate and the debt load of the central government are relatively low, providing leeway for more macro policy actions. He cited China's recent year's actions, which he claimed were successful in reducing the dangers associated with debt and real estate.
Li mentioned the previously announced ultra-long special treasury bonds worth 1 trillion yuan ($140 billion), claiming they will encourage investment and stabilise economic growth.
The second-biggest economy in the world, China's $18 trillion economy is beset by challenges such as a real estate bubble, issues with local government debt, industrial overcapacity, deflationary threats, and a decline in foreign investment.
Since 2000, Beijing has organised an annual high-level meeting that provides a forum for discussion on foreign investment between Chinese policymakers and CEOs from across the world. Ray Dalio, the founder of Bridgewater Associates, and Tim Cook, the CEO of Apple, are frequent guests.
According to reports last week, Li has no plans to engage with foreign CEOs attending the summit this year. Although there is a growing outflow of foreign capital, Beijing is still trying to court American companies, as seen by President Xi Jinping's intentions to meet with a group of business leaders in the United States on Wednesday following the conference, as reported by the Wall Street Journal on Thursday.
Due to worries about politics, the business climate, and the country's economic recovery, foreign companies have become less favourable towards China since Beijing lifted its extremely severe COVID restrictions in late 2022.
A new action plan aimed at stopping a decline in foreign investment seeks to level the playing field for foreign companies, remove restrictions on foreign participation in the nation's extensive manufacturing sector, and encourage the growth of industries like telecommunications and healthcare.
Despite the fact that the economy got off to a strong start in the new year, economists have labelled Li's projected yearly growth of approximately 5% as "ambitious" in light of the property crisis and the weak growth in household consumption brought on by slow income growth and job market uncertainties.