SwedCham China Insights for the Week of 19 August – 23 August, 2024

SwedCham China Insights for August 19 – August 23

Content Provided by Kreab

Top news of the week:

China reports 129.9% growth of foreign visitors in first seven months

19 August 2024

The number of foreign visitors to China soared 129.9% year on year to 17.25 million in the first seven months of this year thanks to a series of measures facilitating the entry of foreigners, according to the National Immigration Administration (NIA).

President Xi Jinping says China to continue to support NPC in deepening exchanges with IPU

20 August 2024

President Xi Jinping said that China will, as always, support the National People's Congress (NPC) in deepening exchanges and cooperation with the Inter-Parliamentary Union (IPU). Xi made the remarks while meeting with foreign parliamentary leaders attending the commemoration of the 40th anniversary of NPC's affiliation to the IPU, as well as the 2024 interregional seminar on the achievement of the Sustainable Development Goals (SDGs) for parliaments of developing countries.

China launches anti-subsidy probe into EU dairy products

21 August 2024

The Chinese Commerce Ministry said it is launching an anti-subsidy investigation into certain dairy products imported from the EU from August 21. The investigation has been launched in response to an application submitted by the Dairy Association of China and the China Dairy Industry Association on behalf of the domestic industry in July, the ministry said in a statement.

Nation unveils guideline to improve market access

22 August 2024

China unveiled a guideline to improve its market access system on August 21. The guideline, released by the General Office of the CPC Central Committee and the General Office of the State Council, details 10 measures, including improving the negative list management model, strengthening coordination of policies for domestic and foreign-funded enterprises, relaxing entry thresholds for the service sector in an orderly manner, etc.

Xi Jinping to attend opening ceremony of 2024 Summit of FOCAC

23 August 2024

President Xi Jinping will attend the opening ceremony of 2024 Summit of Forum on China-Africa Cooperation (FOCAC) and deliver a keynote speech on September 5, Chinese Foreign Ministry spokesperson Hua Chunying announced on August 23.

Insight of the week:

China’s State Council has approved the 2024 Negative List for Foreign Investment Access. Restrictions on foreign investment in the manufacturing sector shall be completely removed, and telecommunications, education, and healthcare service sectors shall be further opened up.

On August 19, Premier Li Qiang chaired a State Council executive meeting, during which the “Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition)” was reviewed and approved. This is the first update since the previous version’s release at the end of 2021. Although the full text of the document has not yet been published, the State Council meeting emphasized that China will “further relax foreign investment access, completely removing restrictions on foreign investment in the manufacturing sector and accelerating the opening of the telecommunications, education, and healthcare service sectors”. Additionally, the meeting proposed that China should adapt to new circumstances by optimizing policies to attract foreign investment, promptly responding to reasonable requests from foreign investors, and introducing more practical measures to improve the business environment and enhance service guarantees.

In the 2021 version of the negative list for foreign investment access, only two items remained in the manufacturing category. With the release of the 2024 version of the negative list, a milestone has been achieved in China's foreign investment access within the manufacturing sector, sending a positive message to global investors.

Another document approved at the meeting was a set of guidelines on promoting the high-quality development of services trade through high-level opening up. The meeting stressed that accelerating the development of services trade is essential to expanding high-level opening up and fostering new foreign trade drivers. Efforts should be made to promote innovative development in key services trade areas, as well as the integration of services trade and goods trade, according to the meeting. It also highlighted the importance of efforts to create new services trade growth drivers, and to support the international development of professional services such as finance, consultation, design and certification.

Some analysts believe that as China continues its opening-up efforts, its potential in attracting foreign investment will continue to expand in the long term, contributing to a more resilient and high-quality supply chain.