SwedCham China Insights for the Week of April 10 - April 14 , 2023

Top news of the week:

China’s cabinet studies measures to promote stable scale, improved structure of foreign trade

April 10, 2023

In light of practical problems in different fields, more efforts will be made to enrich, adjust and perfect related policies, implement a policy mix to maintain the stability of foreign trade, and help enterprises secure orders and expand the market, according to a State Council executive meeting chaired by Premier Li Qiang. China will find ways to stabilize exports to developed economies and guide companies to explore markets in developing countries, as well as regional markets.

CICPE kicked off in Hainan on 10 April

April 11, 2023

The third China International Consumer Products Expo (CICPE) kicked off on April 10 in southern China’s island province of Hainan. The third CICPE has more prominent features of green, healthy, smart and fashion consumption styles and will see over 1,000 products under 300 global brands make their debut, said China’s Minister of Commerce Wang Wentao at the opening ceremony.

China’s computing power scale ranks second in the world

April 12, 2023

China ranks second globally in terms of the scale of its computing power, according to the Ministry of Industry and Information Technology (MIIT). The scale of the core computing power industry reached 1.8 trillion yuan. The China Academy of Information and Communications Technology estimates that every yuan invested in computing power will boost a 3 to 4-yuan growth of China’s GDP.

Foreign trade rises 4.8 percent YoY in Q1 2023

April 13, 2023

China’s foreign trade totaled 9.89 trillion yuan in the first quarter of 2023, up 4.8 percent year-on-year, Chinese customs data showed on April 13.

China supports Afghan peaceful reconstruction

April 14, 2023

Under the new circumstances, Afghanistan should be a platform for cooperation among various parties rather than geopolitical games, and China supports all plans and measures that are conducive to political settlement of the Afghan issue, according to an 11-point statement released by China, detailing its stance on the Afghanistan issue.

Insight of the week:

President Xi Jinping’s recent inspection tour of Guangdong, one of China’s key economic regions, highlights China’s emphasis on sustainable development, high-tech development, military preparedness, and opening-up. On April 10, Xi visited the port city of Zhanjiang, accompanied by senior aides, and toured various sites, including a national fishery project developed under the National High Technology Research and Development Programme, a water resource allocation facility, and an area of mangrove forests. This visit aligns with China’s commitment to build an “ecological civilization” and achieving peak carbon emissions before 2030 and carbon neutrality before 2060.

The following day, Xi, also the chairman of the Central Military Commission, inspected the navy of the Southern Theater Command of the People’s Liberation Army (PLA). Xi called on China’s armed forces to strengthen military training oriented towards actual combat. He stressed strengthening and combat readiness and accelerating transformation to boost the armed forces’ modernization levels on all fronts. Xi also urged the military to resolutely defend China’s territorial sovereignty and maritime rights and interests and strive to maintain the overall stability of the country’s neighboring regions.  Xi’s comments came amid rising tension in the region after Beijing conducted three days of military drills near Taiwan. Beijing has also criticized a plan for US forces to use a growing number of bases in the Philippines, including one near Taiwan. It is worth noticing that the United States and the Philippines are holding their largest-ever joint military drills after China concluded large-scale exercises around Taiwan.

On April 12, Xi inspected the city of Guangzhou. Xi went to LG Display’s manufacturing base in Guangzhou and GAC Aion New Energy Automobile Co, Ltd, where he learned about local efforts to promote high-standard opening up and the high-quality development of the manufacturing sector, and about how enterprises are boosting innovation and building self-owned brands. His moves are as seen as a positive sign for foreign enterprises that would like to pursue further development in China, and a continuing supporting effort to China’s electronic vehicle industry.