SwedCham China Insights for the Week of March 25 – March 29

Top news of the week:

Premier Li Qiang chairs State Council executive meeting

March 25, 2024

On March 22, Premier Li Qiang presided over a State Council executive meeting that mulled measures to coordinate the establishment of financing credit services platforms and promote financing facilitation for micro, small and medium-sized enterprises. The meeting also heard reports on optimizing real estate policies, and reviewed and adopted regulations for the docking of international cruise ships at Chinese ports.

China to speed up “new productive forces”, vice president says

March 26, 2024

China will accelerate the development of “new productive forces” and bolster stability and security for the global economy, Vice President Han Zheng told on the “Invest In China Forum” in Beijing. The term “new productive forces” was coined by President Xi Jinping last September, underscoring the need for economic development based on innovation in advanced sectors.

China launches new satellite for atmospheric, space environment monitoring

March 27, 2024

China successfully launched a satellite for environmental monitoring from the Taiyuan Satellite Launch Center in north China's Shanxi Province on March 27. A Long March-6 rocket, carrying the satellite Yunhai-3 02, blasted off at 6:51 a.m. Beijing Time.

China and Netherlands discuss ways to boost semiconductor cooperation

March 28, 2024

China hopes the Netherlands will ensure normal trade of lithography machines, Chinese Commerce Minister Wang Wentao said. Wang made the remarks during a meeting with visiting Dutch Minister for Foreign Trade and Development Cooperation Geoffrey van Leeuwen on March 27 in Beijing.

Premier Li Qiang pledges efforts to promote equipment upgrades, trade-ins of consumer goods

March 29, 2024

On March 28, Premier Li Qiang spoke during a State Council video conference and pledged to take concrete action to promote large-scale equipment upgrades and consumer goods trade-ins in an effort to facilitate economic transformation and improve people’s livelihood. Li highlighted the strategic significance of the upgrade campaign and its benefits for the economy, businesses and individuals.

Insight of the week:

Recently, two major events held in China have attracted global attention: the China Development Forum (CDF) from March 24 to 25 in Beijing, and Bo’ao Forum for Asia (BFA) from March 26 to 29 in the resort town of Bo’ao, southern China’s Hainan Province.

Themed “The Continuous Development of China”, CDF 2024 kicked off on March 24 with Premier Li Qiang attending the opening ceremony and delivering a keynote speech. It is not a conventional case, for in the previous CDFs, the keynote speech at the opening ceremony was delivered by the vice premier. Li’s speech at the CDF, which included the CEOs of multinationals, emphasized that the Chinese government is carefully studying issues raised frequently by private sector, such as market access and public tendering. According to Li, the fundamentals that sustained China’s long-term economic growth were unchanged. Continuous efforts will be made to foster a world-class business environment that is market-oriented, law-based and internationalized, steadily advance institutional opening up and link with the world at a higher level of openness, said Li.

At the end of CDF 2024, President Xi Jinping met with a delegation from the US business communities and strategic academia on March 27 in Beijing, the latest of Beijing’s efforts to rebuild business confidence in China at a time of economic uncertainty and rising tensions with the US. More than a dozen prominent business leaders and scholars were at the meeting – one of the biggest US delegations Xi has hosted in years. At the meeting, Xi expressed confidence in China’s economy and emphasized the mutually beneficial economic ties between China and the US. China’s economy is “sound and sustainable”, President Xi told the American delegation, as he promised more policy support to improve the business environment. According to Xi, China's development has gone through all sorts of difficulties and challenges to get to where it is today. He rejected narratives that the economy is “collapsing” or “reaching its peak” and says Beijing will provide “broader room” for foreign businesses.

The opening ceremony of the BFA Annual Conference 2024 was held in Bo’ao on March 28, with China’s top legislator, Chairman of the Standing Committee of China’s National People’s Congress, Zhao Leji stressing China’s economic potential, appealing to international investors and calling for Asia solidarity and cooperation for regional prosperity in his keynote speech.

Analysts believe that the messages conveyed in China’s leaders’ words showed the country’s economy is resilient and would maintain its potential. China is still open to foreign businesses and will continue to take measures to ensure their legitimate rights.