Top Highlights at the China Business Forum in London
Posted by Damon Za on March 19th, 2021
The China Business Forum in London touches on almost every aspect of the Chinese economy and society. At the forum, China pledged for significant reforms and, with them, potential opportunities to local and international businesses operating in China and around the world. We have set out some of the key takeaways from the foreign investors' perspective.
Higher-quality opening-up
China is committed to opening its doors wider to the world, keeping its industrial and supply chains stable, and making opening-up a catalyst for reform and development, including the following measures:
It significantly shortening China's negative list for foreign investment, formulating a negative plan for cross-border trade in services, granting greater autonomy to pilot free trade zones in terms of reform and opening-up, and accelerating the growth of cross-border e-commerce and other innovative businesses. Besides these, the nation also aims in fostering a market environment in which all organizations, Chinese and foreign, are treated as equals and engaged in fair competition.
International trade and outbound investments
In addition to further opening up the domestic economy, the Chinese economists also support further international cooperation, including by focusing on quality, international rules, and market principles in jointly pursuing Belt and Road projects for mutually beneficial outcomes, promoting the healthy development of Chinese outbound investments, and working towards the signing of the Regional Comprehensive Economic Partnership. Additionally, there are talks for free trade negotiations with Japan and South Korea, working with the United States to implement the China-U.S. Phase One Trade Deal and safeguarding the multilateral trading regime and actively participating in WTO reforms.
Supporting businesses and improving the business environment
In the aftermath of COVID-19, China is doubling down on its efforts to help enterprises through the following measures: delivering more than RMB 2.5 trillion of additional cuts to taxes and government fees in 2020, extending to March 2021, the policy of allowing MSME’s to postpone principal and interest payments on their loans and encouraging banks to increase lending to micro and small companies and at lower interest rates. It also supports businesses to increase bond financing, encouraging the resumption of work, production, and business activities while continuing to implement COVID-19 control and prevention measures, and providing access to more online government services. During the China Business Forum in London, the delegates discussed improving market-based investment and financing mechanisms to support private companies to participate in major projects on an equal footing.
Innovation, technology and the digital economy
The COVID-19 experience has demonstrated the potential and resilience of China's digital economy. In terms of innovation and technology, the following measures are to be taken:
Increase lending to manufacturers and promoting the industrial internet as well as smart manufacturing, introducing new policies to support science and technology, innovation, e-commerce, online services, the digital economy, and 5G implementation, encouraging businesses to increase investments in research and development and strengthening intellectual property protection. The panel also supports the roll-out of e-commerce and expresses delivery services in rural areas to enhance consumption.
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