Page 52 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
US to invest and operate in the country, and amid the China-US trade tensions and boost
the Chinese government will continue to create economic development on both sides. Domestic
a good investment environment and protect reforms, such as State-owned enterprises
intellectual property rights. Former vice-minister reforms and "competitive neutrality" reform,
of commerce Wei Jianguo, who is now vice- could be one of the key ways to deal with the
president of the Beijing-based China Center for current conflicts, especially when trade tensions
International Economic Exchanges, said China have lingered about and "investment tensions"
“is not fearful of the extreme US pressure, and are on the rise. Implementation of the principle
it is capable of dealing with the worst results. of competitive neutrality in the financial market,
[Liu's remarks] were also a reassuring message along with the elimination of subsidies in the
to global companies and investors that China's sector are also necessary. As one of the results
market reform and opening-up will not go of the trade tensions between China and the
backward, the Chinese economy is resilient United States, China's investment in the US
and the government is capable of shielding the also decreased because of some discriminatory
economy from the negative impact of trade policies, but a "tit for tat" strategy is not a good
conflicts," he added. Foreign Ministry spokesman choice in respond to the investment tension.
Geng Shuang said that Washington's mid 2019 China could be more open to foreign investment,
threat to order US companies to seek alternatives including that from US enterprises. Given
to doing business with China sounds more like a the current situation, a lot of measures are
political slogan than a practical move. "Even if it expected, especially constructive policies, to ease
were to happen, there would be others to fill the tensions. Key priorities for Chinese economic
gap. In the end, it would be the US that suffered reform should include continuing to reduce and
the loss." The ministry said that the US tariff eliminate equity caps on foreign investments in
hikes have dragged down international trade and services and manufacturing and accord national
global economic growth, and it strongly urged the treatment to foreign-owned firms. In terms of
US not to misjudge the situation and to stop the SOE reforms, some measures such as reducing
wrong moves immediately (Li). barriers to entry for productive private firms
to promote competition with SOEs, promote
Gu Xueming, head of the ministry's Chinese market-oriented mergers and acquisitions, and
Academy of International Trade and Economic further financial market reform to promote
Cooperation, said none of the extreme pressure more efficient allocation of funds are essential.
tactics and intimidation by the US will work with Together, these economic reforms could boost
China, which will unswervingly protect itself. Chinese productivity growth and help reconcile
Noting that cooperation is the only correct China-US differences," said Schott. To further
choice, Gu said he hoped the US will see the open up the domestic market, China has recently
situation clearly, give up its illusions and resolve eased the rules for foreign capital inflows. To
its differences with China under the principle of further open up the capital account is a "must"
mutual benefit and respect. Any agreement must for the globalization of Chinese economy,
be acceptable to both sides. The US imported although this process may bring pressure and
goods from China totaling US$478.4 billion in risks of capital outflows. As one of the priorities,
2018, according to China's General Administration China can introduce investment products based
of Customs. David French, senior vice-president on global capital market indices, such as the S&P
for government relations of the National Retail 500, for domestic households (Chen, Deeper).
Federation, said, "It's impossible for businesses
to plan for the future in this type of environment. China seems to be less affected by the trade
The administration's approach clearly isn't war than the US expected. That is because it
working" (Jing) boasts a huge domestic market with a complete
supply chain, which has ensured its strong
China, however, also needs to do its part. and lasting attraction for foreign investment.
Deepening reform and opening-up with Despite the decline in China's exports to the
international coordination would reduce conflicts US, its exports to other economies such as the
52
US to invest and operate in the country, and amid the China-US trade tensions and boost
the Chinese government will continue to create economic development on both sides. Domestic
a good investment environment and protect reforms, such as State-owned enterprises
intellectual property rights. Former vice-minister reforms and "competitive neutrality" reform,
of commerce Wei Jianguo, who is now vice- could be one of the key ways to deal with the
president of the Beijing-based China Center for current conflicts, especially when trade tensions
International Economic Exchanges, said China have lingered about and "investment tensions"
“is not fearful of the extreme US pressure, and are on the rise. Implementation of the principle
it is capable of dealing with the worst results. of competitive neutrality in the financial market,
[Liu's remarks] were also a reassuring message along with the elimination of subsidies in the
to global companies and investors that China's sector are also necessary. As one of the results
market reform and opening-up will not go of the trade tensions between China and the
backward, the Chinese economy is resilient United States, China's investment in the US
and the government is capable of shielding the also decreased because of some discriminatory
economy from the negative impact of trade policies, but a "tit for tat" strategy is not a good
conflicts," he added. Foreign Ministry spokesman choice in respond to the investment tension.
Geng Shuang said that Washington's mid 2019 China could be more open to foreign investment,
threat to order US companies to seek alternatives including that from US enterprises. Given
to doing business with China sounds more like a the current situation, a lot of measures are
political slogan than a practical move. "Even if it expected, especially constructive policies, to ease
were to happen, there would be others to fill the tensions. Key priorities for Chinese economic
gap. In the end, it would be the US that suffered reform should include continuing to reduce and
the loss." The ministry said that the US tariff eliminate equity caps on foreign investments in
hikes have dragged down international trade and services and manufacturing and accord national
global economic growth, and it strongly urged the treatment to foreign-owned firms. In terms of
US not to misjudge the situation and to stop the SOE reforms, some measures such as reducing
wrong moves immediately (Li). barriers to entry for productive private firms
to promote competition with SOEs, promote
Gu Xueming, head of the ministry's Chinese market-oriented mergers and acquisitions, and
Academy of International Trade and Economic further financial market reform to promote
Cooperation, said none of the extreme pressure more efficient allocation of funds are essential.
tactics and intimidation by the US will work with Together, these economic reforms could boost
China, which will unswervingly protect itself. Chinese productivity growth and help reconcile
Noting that cooperation is the only correct China-US differences," said Schott. To further
choice, Gu said he hoped the US will see the open up the domestic market, China has recently
situation clearly, give up its illusions and resolve eased the rules for foreign capital inflows. To
its differences with China under the principle of further open up the capital account is a "must"
mutual benefit and respect. Any agreement must for the globalization of Chinese economy,
be acceptable to both sides. The US imported although this process may bring pressure and
goods from China totaling US$478.4 billion in risks of capital outflows. As one of the priorities,
2018, according to China's General Administration China can introduce investment products based
of Customs. David French, senior vice-president on global capital market indices, such as the S&P
for government relations of the National Retail 500, for domestic households (Chen, Deeper).
Federation, said, "It's impossible for businesses
to plan for the future in this type of environment. China seems to be less affected by the trade
The administration's approach clearly isn't war than the US expected. That is because it
working" (Jing) boasts a huge domestic market with a complete
supply chain, which has ensured its strong
China, however, also needs to do its part. and lasting attraction for foreign investment.
Deepening reform and opening-up with Despite the decline in China's exports to the
international coordination would reduce conflicts US, its exports to other economies such as the
52
