SwedCham China Insights for week of November 4 – November 8

SwedCham China Insights for November 4 – November 8

Content Provided by Kreab

Top news of the week:

China revises rules to ease foreign strategic investment in listed firms

4 November 2024

On November 1, China’s Ministry of Commerce and five other government departments released revised regulations for foreign investment in listed companies, making it much easier for overseas investors to invest in Chinese listed firms, in the country’s latest move to further promote high-quality opening-up of the capital market.

China’s services trade reports rapid growth in first three quarters

5 November 2024

China’s services trade saw rapid growth in the first three quarters of the year, including a steep increase in the trade of travel-related services, official data showed. The country’s services trade totaled nearly 5.52 trillion yuan (about US$777.29 billion) between January and September, up 14.5% year on year, according to the Ministry of Commerce.

Premier Li Qiang pledges further opening up at import expo

6 November 2024

On November 5, Premier Li Qiang pledged to further expand opening up and turn China’s vast market into great opportunities for the world. Li made the remarks during his keynote speech at the opening ceremony of the seventh China International Import Expo (CIIE) and the Hongqiao International Economic Forum in Shanghai.

China’s foreign trade up 5.2 percent in first ten months

7 November 2024

China’s foreign trade reached 36.02 trillion yuan (about US$5 trillion) in the first ten months of this year, marking a steady year-on-year growth of 5.2%, according to the latest customs data.

China willing to promote sound, sustainable trade ties with U.S.

8 November 2024

China is willing to strengthen communication, expand cooperation and resolve differences with the United States for sound and sustainable development of bilateral economic and trade relations, He Yongqian, spokesperson for the Chinese Commerce Ministry, said on November 7. 

Insight of the week:

Donald Trump has been elected as the 47th president of the United States, winning over Democrat Kamala Harris. He is set to take office in January 2025.

Major US-listed Chinese stocks dropped following an election win for Trump, who threatened new tariffs on the campaign trail with a particular focus on Chinese imports. However, Chinese shares rebounded strongly from Wednesday’s losses as robust exports and hopes for more stimulus outweighed concerns about tariffs spurred by the US election outcome. The onshore CSI 300 Index climbed 3% to finish at its highest level in about a month, despite a 1% loss after the opening bell. It fell 0.5% in the previous session. A key gauge of Chinese firms listed in Hong Kong closed 2.5% higher. China’s currency also flipped to gains.

President Xi Jinping congratulated Donald Trump on his re-election to the White House. Xi said China-US cooperation is a long-term goal and the two countries should strengthen dialogue while properly managing their differences. The president added China and the US “gained from cooperation while lose from confrontation”.

Donald Trump’s election victory was a hot topic on Chinese social media, with Weibo users discussing what it means for US relations with China and speculating on the role Elon Musk would play in a second Trump administration. Overall, Chinese netizens tended to view the US election with a spectator’s curiosity rather than showing genuine emotional responses.

Shen Dingli, an international policy analyst from Fudan University, commented that Trump’s return to power will present both greater opportunities and greater risks for China. He emphasized that the outcome would depend on how the two countries engage with each other.

About Kreab

Founded in Stockholm, Sweden, in 1970, Kreab is a global strategic communications consultancy with offices in 25 countries, serving over 500 global clients. Kreab advises on communication issues of strategic importance in business, finance, and politics, helping clients solve complex communications challenges and achieve their strategic goals. The Kreab Beijing team is well known for its track record of helping clients manage and strengthen their reputation through services spanning corporate communications, financial communications, public affairs, and social media. Contact Kreab at kchina@kreab.com, follow Kreab on WeChat (ID: KreabChina), or visit Kreab's website at https://www.kreab.com/beijing.