SwedCham China Insights for the Week of June 17 - June 21 , 2024

Top news of the week:

China lashes out at US over report of Pentagon’s secret anti-vax campaign

17 June 2024

Beijing has called on Washington to “stop fabricating and disseminating false information” in response to a report that the Pentagon ran a secret campaign during the Covid-19 pandemic to discredit China’s vaccines.

World Economic Forum's meeting in Dalian to forge unified vision for development

18 June 2024

The World Economic Forum's 15th Annual Meeting of the New Champions to be held from June 25 to 27 in Dalian, northeast China's Liaoning Province, aims to forge a unified vision for development, an official said at a press conference in Beijing on Tuesday.

IMF Inaugurates Shanghai Regional Center

19 June 2024

The International Monetary Fund (IMF) officially opened its Shanghai Regional Center to enhance cooperation with Asia Pacific economies, conduct relevant research, and provide capacity-building support. PBOC Governor Pan Gongsheng and IMF Managing Director Kristalina Georgieva highlighted the center's role in strengthening macroeconomic policy exchanges, fostering international economic cooperation, and supporting regional and global financial stability.

Report on Chinese NEV manufacturers in Europe launched in Brussels

20 June 2024

China Chamber of Commerce to the European Union and a China state-owned think tank jointly released a report on Chinese new energy vehicle (NEV) manufacturers in Europe, highlighting the mutual benefits of China-Europe cooperation in this sector. The report, launched at the Europe-China CEO Roundtable in Brussels, emphasizes China’s advancements in NEV technology and the potential for strengthened bilateral collaboration in technology, policy, and investment. Former UN Assistant Secretary-General Brice Lalonde advocated for cooperation over trade wars, stressing the importance of China and Europe working together to achieve carbon neutrality.

Lujiazui Forum concludes in Shanghai

21 June 2024

The Lujiazui Forum, which began on June 19, focused on promoting global economic growth through high-quality financial development, with Chinese financial regulators announcing policies to support technological innovation and financial reform. The forum convened senior leaders, heads of major financial markets, and renowned experts to discuss key economic and financial issues. Since its inception in 2008, it has become China’s authoritative financial forum and a prestigious international platform for high-level financial dialogue. This collaborative effort aims to support the development of the Shanghai International Financial Center, China’s financial reform, and global financial governance.

Insight of the week:

On June 19, China's State Council, the cabinet, approved a guideline containing numerous policies and measures aimed at promoting the high-quality development of venture capital and supporting technological innovation.

China will expand the opening up of venture capital (VC) investment by revising regulations to boost accessibility for foreign investors, as announced by the State Council. The new measures will facilitate foreign-invested VC enterprises within China and support international professional investment institutions in establishing Renminbi funds. This initiative aims to leverage their investment experience and service advantages, promoting a virtuous cycle of technology, industry, and finance.

Encouraging long-term capital flow into VC investment is crucial for fostering innovation, industrial growth, and financial stability. To this end, China will support insurance institutions investing in VC funds and deepen pilot projects for cross-border financing. The country also plans to optimize foreign exchange management and expand the pilot mechanism for Qualified Foreign Limited Partnerships (QFLP), guiding foreign VC institutions in regulated cross-border investments while promoting and regulating the overseas investment of Chinese VC institutions.

China's policymakers have emphasized developing patient capital, focusing on long-term sustainable growth, and supporting technological innovation through VC investments. Measures include establishing green channels for financing tech-based enterprises that achieve breakthroughs in critical technologies, improving the efficiency of issuance reviews within the National Equities Exchange and Quotations (NEEQ), and creating a consultation mechanism to prevent improper policies impacting VC. Additionally, reforms to the Science and Technology Innovation Board (STAR) market aim to serve sci-tech innovation better and promote new productive forces.