SwedCham China Insights for the Week of January 15 - January 19 , 2024

Top news of the week:

China urges better financing coordination for housing sector

January 15, 2024

China’s housing ministry and financial regulator asked local governments to better coordinate with financial institutions to provide financing support to real estate projects. The two regulators announced a plan to set up a mechanism aimed at responding to the financing needs of real estate projects more precisely, supporting the stable development of the housing sector.

China releases guideline to boost “silver economy”

January 16, 2024

China’s State Council released guidelines to bolster the “silver economy” on January 15. This policy document, the first in China named after the “Silver Economy,” outlines 26 measures across four key areas.

China’s GDP expands 5.2% in 2023, surpassing annual target

January 17, 2024

China’s gross domestic product (GDP) grew 5.2 percent year on year to hit 126.06 trillion yuan (US$17.71 trillion) in 2023, higher than the target of around 5 percent, data from the National Bureau of Statistics (NBS) showed.

China to strengthen party’s leadership on central bank policy panel

January 18, 2024

China’s cabinet has amended rules for the central bank’s monetary policy committee to strengthen the Communist Party’s leadership over key policy issues, the official media reported on January 18. According to the new rules, the policy committee must adhere to the leadership of the Communist Party of China, improve the modern monetary policy framework and report important matters to the Party’s Central Committee and the State Council.

China says it is willing to mediate between Iran, Pakistan

January 19, 2024

China said it would like to play a constructive role in cooling down the tension between Pakistan and Iran. The remarks were made by Chinese Foreign Ministry spokesperson Mao Ning at a regular press briefing in Beijing.

Insight of the week:

Premier Li Qiang attended the World Economic Forum (WEF) Annual Meeting and paid an official visit to Switzerland and Ireland from January 14 to 17.  Li is the most senior Chinese official to attend the winter Davos with global business and political elites since President Xi Jinping in 2017.

Li said in a keynote speech to business leaders at the WEF in Davos that the Chinese economy had rebounded and moved upwards, and was estimated to have grown around 5.2% in 2023, above the official target of around 5%. Li said the Chinese economy was open for business and highlighted its potential for foreign investment, saying the world needed to pull down barriers to competition and trade to tackle global challenges. According to Li, China, with a rapidly urbanizing population of 1.4 billion people, would play an important role in boosting aggregate global demand. However, his past overtures declaring China open for business have been met with scepticism in some boardrooms in light of a broader anti-espionage law, raids on consultancies and due diligence firms and exit bans, according to trade bodies. “We will take active steps to address reasonable concerns of the global business community,” Li said.

Besides the WEF, Premier Li Qiang held important talks with leaders from Swiss and Ireland. In a meeting between Premier Li and Swiss President Viola Amherd on January 15 (local time), China announced unilateral visa-free access for Swiss citizens and the initiation of an FTA upgrade, highlighting strengthened diplomatic ties and economic collaboration between the two nations. On January 17 (local time), Ireland secured a unilateral visa-free policy from China, after Premier Li sat down with leaders in Dublin and praised “close ties” between the two nations. China has removed stringent visa requirements for 11 countries in the past six months as Beijing takes steps toward opening up and encouraging more cross-border exchanges.

The analyst believes that both Li’s speech at WEF and China’s visa-free policy indicate the country’s efforts to enhance international exchanges. And more targeted measures are essential to further alleviate business bodies’ concerns and boost their confidence in doing business in China.