SwedCham China Insights for the week of May 31-June 4, 2021
Content Provided by Kreab
Top news of the week:
President Xi calls for comprehensive sci-tech development
May 31, 2021
On May 28, President Xi stressed sci-tech self-strengthening at higher levels. Xi emphasized that sci-techdevelopment should be: 1) achieving breakthroughs in core technologies in key fields; 2) enhancing the overall efficacy of the national innovation system; 3) more participation in global sci-tech governance; 4) building a global center of talents. Sci-tech self-reliance and self-strengthening are considered to be priorities.
China releases new three child policy
June 1, 2021
On May 31, President Xi Jinping chaired a meeting of the CPC Politburo to hear reports on major policy measures that will actively address the aging of the population during the 14th Five-Year Plan period. As a policy response to combat the increasing elderly population, China has announced that couples can now have three children across the nation with a batch of supporting policies in making.
15 private tutoring firms fined in a new round of industry crackdowns
June 2, 2021
On June 1, China’s market regulator fined 15 private tutoring firms a combined 36.5 million yuan for false advertising and pricing fraud, including major brands like Tencent-backed Yuanfudao, Alibaba-backed Zuoyebang, and New Oriental Education & Technology Group. Analysts believe the strict regulations signal a step to promote education fairness.
Further reform and opening leads to approval of new qualified domestic institutional investors
June 3, 2021
On June 2, State Administration of Foreign Exchange (SAFE) granted 17 financial institutions a total qualified domestic institutional investor (QDII) quota of USD 10.3 billion, facilitating China’s two-way capital market opening-up together with QFII/RQFII mechanisms. The SAFE has released QDII quotas routinely since last September, with six previous rounds approved.
US President Biden clarifies ban on investment in Chinese companies
June 4, 2021
On June 3, President Biden signed an order amending a ban on US investment in Chinese companies that began under his predecessor. The order names 59 firms claimed to be with ties to China’s military or involvement in the surveillance industry, including Huawei Technologies Co, and China’s three biggest telecom companies, China Mobile, China Unicom and China Telecom.
Insight of the week:
On June 3, United States President Joe Biden signed an order amending a ban on US investment in Chinese companies that began under his predecessor. The order names 59 firms with ties to China’s military or involvement in the surveillance industry, including Huawei Technologies Co, and China’s three biggest telecom companies, China Mobile, China Unicom and China Telecom. The ban on new investments will take effect on August 2 in New York, according to administration officials. It is worth noting that Huawei has officially unveiled its Android alternative, Harmony OS 2.0, in an ambitious move to counter US ban and dominance. In response to the blacklist, Wang Wenbin, a Chinese Foreign Ministry spokesperson, said that China will take necessary measures to safeguard the legitimate rights and interests of Chinese companies and firmly support them to protect their rights. Xiaomi Corp, previously designated as a blacklisted company due to alleged military connections, was removed after filing a lawsuit against the US government in early 2021. Analysts pointed out that the ban was announced after two phone calls held by Chinese Vice Premier Liu He with US Trade Representative Ambassador Catherine Tai and US Secretary of the Treasury Janet L. Yellen which were widely seen as positive gestures from both sides to normalize communications.
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