SwedCham China Insights for the Week of September 11 - September 15 , 2023

Top news of the week:

China's Prime Minister Li Qiang meets with European Council President Charles Michel

September 11, 2023

European Council President Charles Michel met with China's Prime Minister Li Qiang in the margins of the G20 Summit in New Delhi, India. Both sides exchanged views on a wide range of issues and confirmed their interest in maintaining stable and constructive relations. EU and China indicated that they would continue ensuring that this relationship is balanced, reciprocal and mutually beneficial.

China to set up cross-Strait integrated development demonstration zone

September 12, 2023

China will make Fujian Province a demonstration zone for the integrated development across the Taiwan Strait, according to a circular released on September 12. The document listed the general requirements and 21 specific measures for building the Fujian-Taiwan area. The circular said policies and systems will be optimized to promote the well-being of Taiwan compatriots and ensure they enjoy equal treatment with their mainland counterparts.

Chinese vice premier virtually attends Belt and Road Summit in Hong Kong

September 13, 2023

Chinese Vice Premier Ding Xuexiang virtually attended and made a keynote video speech at the Belt and Road Summit held in China's Hong Kong SAR on September 13. In his first speech to the city, Ding expressed support for maintaining Hong Kong’s unique status and praised the city’s work related to the belt and road. He was the most senior Beijing leader to speak at the event.

China to launch online appointment, inquiry services for foreigner visas, documents

September 14, 2023

China's National Immigration Administration (NIA) will launch new services, such as online appointments and inquiries related to foreigners' visas and other relevant documents, on its service platform starting from October 9.

China central bank cuts reserve requirement ratio to 7.4%

September 15, 2023

The People’s Bank of China said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from September 15. The move came after the world’s second-biggest economy has struggled after its post-pandemic recovery faltered. The weighted average RRR for financial institutions stood at around 7.4% after the cut.

Insight of the week:

The G20 Leaders' Summit concluded on September 10 in the capital of India, New Delhi, with the adoption of the New Delhi Leader’s Summit Declaration. Chinese Premier Li Qiang, the leader of the Chinese delegation, attended the G20 Summit. Despite the significant differences among the participants, the summit still achieved outcomes.

G20 nations agreed that states cannot grab territory by force and highlighted the suffering of the people of Ukraine, but avoided direct criticism of Russia for the war. The declaration was seen as an apparent softening from the position that the G20 took last year when it condemned Russia for the war and demanded that it withdraw from Ukraine.

Additionally, the African Union, representing 55 member states, officially became a permanent member of the G20, on par with the European Union, in order to make the grouping more representative. The entry of the African Union would provide greater voice to the Global South within the G20. Besides, the G20 leaders agreed to pursue tripling renewable energy capacity globally by 2030 and accepted the need to phase-down unabated coal power, but stopped short of setting major climate goals.

Several leaders, including those from the United States, India, Saudi Arabia, United Arab Emirates, European Union, France, Germany, and Italy, were to outline plans for a rail and shipping corridor that would connect the Middle East, South Asia and ultimately Europe. The main objective is to facilitate trade and transportation between these regions. The pact comes at a critical time as U.S. President Joe Biden seeks to counter China’s Belt and Road push on global infrastructure by pitching Washington as an alternative partner and investor for developing countries at the G20 grouping. However, the specifics of financing and the timeline for this transportation corridor project have not yet been determined.