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Premier Li Keqiang announced on Sunday that China is set to carefully review issues related to market access and cross-border data flows, with plans to unveil new regulations in these areas soon. Addressing an audience of global CEOs and Chinese policymakers at the China Development Forum in Beijing, Li extended a warm invitation to companies from all countries to invest in China and expand their presence in the country.
China is prioritizing the development of emerging industries such as biological manufacturing while also focusing on advancing artificial intelligence and the data economy, Li emphasized during the forum. In an effort to boost foreign investment, China recently eased some rules on foreign investment and relaxed certain security regulations on data exports, responding to concerns raised by foreign firms operating in China.
Speaking on the country’s economic outlook, Li highlighted China’s relatively low inflation rate and central government debt burden, indicating ample room for further macro policy measures. He also underscored the effectiveness of measures implemented last year to address property and debt risks, including the issuance of 1 trillion yuan ($140 billion) in ultra-long special treasury bonds aimed at stimulating investment and stabilizing economic growth.
Despite facing challenges such as a property crisis, local government debt issues, industrial overcapacity, and deflationary risks, China remains committed to fostering a favorable environment for foreign investment. The China Development Forum, an annual event since 2000, serves as a platform for global CEOs and Chinese policymakers to engage in discussions on foreign investment.
While Premier Li does not plan to hold meetings with foreign CEOs at this year’s forum, President Xi Jinping is reportedly scheduled to meet with a group of U.S. business leaders after the conference, underscoring China’s continued efforts to attract foreign firms despite rising capital outflows. Foreign companies have expressed concerns about China’s business environment, economic recovery, and political landscape following the relaxation of COVID restrictions in late 2022.
To address the slowdown in foreign investment, China has outlined a new action plan aimed at creating a level playing field for foreign firms, removing restrictions on overseas access in key sectors such as manufacturing, and promoting growth in areas like telecommunications and healthcare.
Although China’s economy has shown resilience at the beginning of the year, analysts consider Li’s annual growth target of around 5% ambitious given challenges such as the property crisis and sluggish household consumption.
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