Page 14 - 2016_WhitePaper_web
P. 14
6 White Paper on the Business Environment in China
November 2014 had reduced the number of sectors where Works Cited
China limits foreign investment to 35 from 79. 5
1 “China’s GDP Growth Beats Forecasts as Stimulus
While skeptics may argue that progress on such crucial mat- Supports Spending. “ Bloomberg. October 19, 2015. http://
ters as SOE reform, anti-corruption and the pilot free trade www.bloomberg.com/news/articles/2015-10-19/china-s-gdp-
zones have been modest this year, this paper will set out to tack- growth-beats-forecasts-as-stimulus-supports-spending
le recent important policy developments in these areas and an-
alyze possible implications for foreign businesses. In addition, 2 Hu Angang. “Embracing China’s New Normal.” Foreign
this paper will also delve into recent developments on signifi- Affairs Magazine, Council on Foreign Relations. May/June2015.
cant China milestones this year, such as the 13th Five-Year Plan https://www.foreignaffairs.com/articles/china/2015-04-20/
which was approved by top Communist Party leadership at the embracing-chinas-new-normal
conclusion of the Fifth Plenum – and how the Plan relates to
President Xi’s “supply-side reform”, the establishment of the 3 James T. Areddy, Lingling Wei. “The World Struggles to
Asian Infrastructure Investment Bank (AIIB), the administra- Adjust to China’s New Normal.” Wall Street Journal. August 25,
tion’s “One Belt, One Road” (OBOR) initiative and the histor- 2015. http://www.wsj.com/articles/the-world-struggles-to-ad-
ic inclusion of the Chinese currency, the yuan, into the Interna- just-to-chinas-new-normal-1440552939
tional Monetary Fund’s (IMF) Special Drawing Rights (SDR)
basket of reserve currencies. Lastly, in US-China relations, this 4 Zhu Junqing. “Yearender: China’s Economy in ‘New
paper will examine the results and aftermath of President Xi Jin- Normal’ Continues to Power Global Growth.” Xinhua.
ping’s State Visit to the US this year, as well as any updates to December 22, 2015. http://news.xinhuanet.com/english/2015-
the US-China Business Investment Treaty (BIT). 12/22/c_134939787.htm
The direction of the Chinese economy is very much in 5 Koh Gui Qing, Kevin Yao. “China Signals ‘New Normal’
transition mode, quite similar to how nations such as Japan (in with Higher Spending, Lower Growth Target.” Reuters. March
the 1980s) and South Korea (in the 1990s) transitioned from 5, 2015. http://www.reuters.com/article/us-china-parliament-
low-end reprocessing export oriented economies to high-end idUSKBN0M103W20150305
technology-oriented/consumer-based economies. Clearly, China
has taken steps to push itself away from a government investment
economic growth model and is pushing towards a consumer-
based economy. It is clearly feeling the pain of transition as those
other countries did. It seems, however, to be staying the course of
the “New Normal”.
While the transition works its way through its narrative ex-
pected (and unexpected) twists and turns, we encourage Chi-
na’s leaders to stay the course and tolerate the painful present
in order to reap the rewards of a better, stronger, more mature
China in the future.
14
November 2014 had reduced the number of sectors where Works Cited
China limits foreign investment to 35 from 79. 5
1 “China’s GDP Growth Beats Forecasts as Stimulus
While skeptics may argue that progress on such crucial mat- Supports Spending. “ Bloomberg. October 19, 2015. http://
ters as SOE reform, anti-corruption and the pilot free trade www.bloomberg.com/news/articles/2015-10-19/china-s-gdp-
zones have been modest this year, this paper will set out to tack- growth-beats-forecasts-as-stimulus-supports-spending
le recent important policy developments in these areas and an-
alyze possible implications for foreign businesses. In addition, 2 Hu Angang. “Embracing China’s New Normal.” Foreign
this paper will also delve into recent developments on signifi- Affairs Magazine, Council on Foreign Relations. May/June2015.
cant China milestones this year, such as the 13th Five-Year Plan https://www.foreignaffairs.com/articles/china/2015-04-20/
which was approved by top Communist Party leadership at the embracing-chinas-new-normal
conclusion of the Fifth Plenum – and how the Plan relates to
President Xi’s “supply-side reform”, the establishment of the 3 James T. Areddy, Lingling Wei. “The World Struggles to
Asian Infrastructure Investment Bank (AIIB), the administra- Adjust to China’s New Normal.” Wall Street Journal. August 25,
tion’s “One Belt, One Road” (OBOR) initiative and the histor- 2015. http://www.wsj.com/articles/the-world-struggles-to-ad-
ic inclusion of the Chinese currency, the yuan, into the Interna- just-to-chinas-new-normal-1440552939
tional Monetary Fund’s (IMF) Special Drawing Rights (SDR)
basket of reserve currencies. Lastly, in US-China relations, this 4 Zhu Junqing. “Yearender: China’s Economy in ‘New
paper will examine the results and aftermath of President Xi Jin- Normal’ Continues to Power Global Growth.” Xinhua.
ping’s State Visit to the US this year, as well as any updates to December 22, 2015. http://news.xinhuanet.com/english/2015-
the US-China Business Investment Treaty (BIT). 12/22/c_134939787.htm
The direction of the Chinese economy is very much in 5 Koh Gui Qing, Kevin Yao. “China Signals ‘New Normal’
transition mode, quite similar to how nations such as Japan (in with Higher Spending, Lower Growth Target.” Reuters. March
the 1980s) and South Korea (in the 1990s) transitioned from 5, 2015. http://www.reuters.com/article/us-china-parliament-
low-end reprocessing export oriented economies to high-end idUSKBN0M103W20150305
technology-oriented/consumer-based economies. Clearly, China
has taken steps to push itself away from a government investment
economic growth model and is pushing towards a consumer-
based economy. It is clearly feeling the pain of transition as those
other countries did. It seems, however, to be staying the course of
the “New Normal”.
While the transition works its way through its narrative ex-
pected (and unexpected) twists and turns, we encourage Chi-
na’s leaders to stay the course and tolerate the painful present
in order to reap the rewards of a better, stronger, more mature
China in the future.
14
