SwedCham China Insights for the week of 24 March - 28 March , 2025

Weekly China Insight

Beijing, 28 March 2025

Premier Li Qiang urges MNCs to resist de-globalization at the 2025 CDF

On 25 March, Premier Li Qiang delivered his keynote to the opening of the 2025 China Development Forum (CDF) – an annual event held since 2000 that connects global CEOs with senior Chinese policymakers and thought leaders to discuss China’s evolving economic landscape.

This year, the event drew attendance from executives of 86 multinational corporations (MNCs), including 27 from the US. These CEOs represent sectors ranging from technology and automotive to media and finance, underscoring China’s central role in MNCs’ global strategies. These CEOs include Roland Busch of Siemens, Tim Cook of Apple, Oliver Zipse of BMW, Ola Kallenius of Mercedes-Benz, Rajesh Subramaniam of FedEx, Albert Bourla of Pfizer, Vasant Narasimhan of Novartis, Pascal Soriot of AstraZeneca, Michael Miebach of Mastercard, Bill Winters of Standard Chartered Bank, Cristiano Amon of Qualcomm, Jean-Pascal Tricoire of Schneider Electric, Stephen Schwarzman of Blackstone, Jon Abrahamsson Ring of IKEA, Rich Lesser of Boston Consulting Group, Bob Sternfels of McKinsey, Kevin Strain of Sun Life, etc.

In his speech, Li emphasized China’s commitment to deepening market reforms, fostering innovation, and encouraging foreign investment. He specifically highlighted Beijing’s push for a more predictable, transparent business environment that aligns with global standards. Li also urged attending business executives to defend globalization, saying “enterprises are not only beneficiaries of globalization but should also be strong advocates and drivers of it.”

The annual forum is a key venue for global CEOs to engage directly with China’s top policymakers. Li’s speech reinforces China’s intention to be an open, competitive player in the global market, despite ongoing geopolitical tensions with western governments.

China details implementation of the Anti-Foreign Sanctions Law

On 24 March, the State Council released new regulations to implement the nation’s Anti-Foreign Sanctions Law, enacted in 2021 as part of China’s growing legal framework to counter foreign economic sanctions. The regulations expand the scope of countermeasures against foreign entities and individuals deemed hostile to China. The regulations, containing 22 measures, enable authorities to seize or freeze a wide range of assets, including intellectual property, securities, and natural resources, when foreign entities are found to be violating the Chinese law. Other restrictive measures include visa bans, expulsion, and restrictions on investment and data transfers.

The move signals Beijing’s intent to institutionalize its economic retaliation tools, and its readiness to use the law to punish MNCs that comply with foreign sanctions against China. Going forward, MNCs will find themselves increasingly caught between complying with US sanctions and Chinese anti-sanction retaliation.

China strengthens trade policy compliance to support market reform

On 21 March, the State Council general office issued new guidelines to enhance trade policy compliance with World Trade Organization (WTO) rules, requiring all levels of government to conduct formal compliance assessments before implementing any trade-related measures. The guidelines aim to align all government regulations with WTO agreements and China’s accession commitments, ensuring transparency and consistency across domestic and international economic activities. The commerce ministry (MofCom) is responsible for leading intergovernmental coordination, responding to WTO members’ concerns, and initiating external compliance reviews to challenge discriminatory measures hurting Chinese firms abroad.

The new guidelines reflect Beijing’s strategic shift toward institutional openness in global rade governance and practices. If implemented well, the guidelines will bolster China’s standing in the multilateral system, especially at a time when Washington is unilaterally dismantling long-established global trade rules.

CATL calls for local production in Europe to secure market position

On 25 March, during a webinar hosted by the EU-China Chamber of Commerce, CATL's European Government Affairs Director, Lin Wenpei, stated that local production in Europe is becoming an essential strategy for Chinese companies to stay competitive. Lin emphasized that with rising geopolitical uncertainties, supply-chain localization is becoming an inevitable trend. As a global leader in batteries, CATL has been expanding its European footprint with factories in Germany and Hungary, and a joint venture with Stellantis in Spain to produce lithium iron phosphate (LFP) batteries by 2026. Lin underlined that adhering to EU regulations and creating local value are crucial to the success of these ventures.

Despite rising scrutiny and potential investigations into Chinese investments from European governments, CATL’s localization efforts in response to EU’s green transition policies could open doors to significant market opportunities for the company in Europe.