SwedCham China Insights for December 18 – December 22

Top news of the week:

Premier Li Qiang chairs State Council executive meeting

December 18, 2023

Premier Li Qiang presided over a State Council executive meeting on December 18. The meeting heard a report on work concerning expediting the building of a national unified market, studied and made arrangements for work on facilitating the high-quality development of disease prevention and control, and reviewed and adopted several regulations, including a draft regulation on the production safety of coal mines.

6.2-magnitude earthquake hits Northwest China’s Gansu

December 19, 2023

A 6.2-magnitude earthquake hit China’s Gansu and Qinghai province on the mid-night of December 18. Hu Changsheng, the Communist Party Secretary of Gansu Province, and Ren Zhenhe, the Governor of the Gansu Province, arrived 3 hours after the earthquake to direct the rescue work. President Xi Jinping and Premier Li Qiang issued important instructions in 7 hours, demanding full-scale search and rescue efforts, proper resettlement of affected people, and maximum efforts to ensure the safety of people’s lives and property. In Gansu, 117 people had been found dead as of 8 a.m. on December 22 and 781 were injured, authorities said. Qinghai saw its death toll rose to 31 with 198 injured and 3 missing as of 10 p.m. on December 21.

China, Russia pledge to expand bilateral trade

December 20, 2023

Premier Li Qiang and Russian Prime Minister Mikhail Mishustin on December 19 agreed to expand bilateral trade while co-hosting the 28th regular meeting between Chinese and Russian heads of government in Beijing.

The 5th China Asset Management Industry ESG Investment Summit Forum was held in Beijing

December 21, 2023

The 5th China Asset Management Industry ESG Investment Summit Forum was held on December 20. At the forum, the “2023 Research Report on ESG Investment Development in China’s Asset Management Industry” was released.

China unveils tariff adjustments for 2024

December 22, 2023

China has announced several adjustments to its tariff policies as the country continues to leverage trade in supporting the economy. The country will implement provisional import tariff rates lower than the “most favored nation” rates on 1,010 goods starting from January 1, 2024, in a move that showcases the country's resolve in further opening-up, facilitates trade and smooths supply chains.

Insight of the week:

This year marks the 45th anniversary of the beginning of China's reform and opening-up. The decision was made during the third Plenary Session of the 11th Central Committee of the Chinese Communist Party in the week of December 18, 1978. To celebrate this anniversary, China’s top two state-owned media outlets, People’s Daily and Xinhua News Agency, both published editorials to reaffirm the significance and value of reform and opening up, emphasizing that China will continue such path despite the obstacles in the past and the future.

Over the past decades, the country’s commitment to liberalizing its economy has significantly enhanced global trade and foreign investment. As a result of the reform policies, China has not only lifted hundreds of millions of its people out of poverty, but also became a reliable engine that drives the global economy.

China’s GDP growth averaged more than 9 percent annually since its reform and opening-up and more than 800 million people have been lifted out of poverty, according to the World Bank. In the last two decades, China has experienced consistent and rapid economic growth. From 2012 to 2021, China’s GDP grew from 53.9 trillion yuan (about US$7.61 trillion) to 114.4 trillion yuan. From 2013 to 2021, it grew at an average annual rate of 6.6 percent, beating the global level of 2.6 percent. Data from the World Bank showed that during this period, China’s contribution to global economic growth averaged 38.6 percent, higher than that of the Group of Seven countries combined.

The recently concluded Central Economic Work Conference, a tone-setting meeting for economic policy in 2024, stressed that it is crucial to strengthen the endogenous driving force for development through reform and opening up, and ensure the advancement of both profound reforms and high-level opening-up. Among specific measures, the meeting said that barriers shall be removed to make it easy for foreigners to do business, study and travel in China. China is seeking ways to continuously boost the high-quality development of the economy. For instance, China recently released an action plan, saying that the country will strictly and reasonably control total coal use and curb high-emissions projects to improve air quality. Besides, China’s recent initiatives, including visa-free policies and tariff adjustments, proves the country’s unswerving commitment to its opening up policy, fostering increased exchanges with other nations.