Page 9 - 2022 White Paper on the Business Environment in China
P. 9
The American Chamber of Commerce in South China
each reinvested US$250 million or more in 2021 with the US over trade specifics, President Xi will
grew from 5% to 10%. The number of companies attend two national events: the February Winter
that will reinvest more than US$250 million is Olympics and the mid-fall 20th Communist Party
10%, a 5% increase compared to last year. Congress. At the Beijing games, China will seek to
demonstrate its mastery of both global spectacle
China is likely to switch its focus to supporting and Covid-19. Even more important, President Xi
economic growth in 2022 after regulatory will want a quiet runup to the party congress —
crackdowns that encompassed property, where he is expected to gain another five-year
education, technology and coal use in 2021. The term as leader, elevating him to the historic level
government tightened regulatory oversight in of Mao Zedong and Deng Xiaoping.
2021 to step up efforts to rebalance long-term
growth and in response to growing tensions with Perhaps it would be appropriate for both
the United States. However, the crackdown has countries to hit the pause button so that they
exposed risks to China’s growth model, which both can have a little me-time of self-reflection.
requires careful management of conflicting Perhaps they could use the time to advance an
goals. China’s economy grew by 4.9% in the third effort that both countries ultimately support:
quarter of 2021 compared with a year earlier, mitigating climate change. As Bloomberg noted
down from the 7.9% growth seen in the second late last year, while the US and China have not
quarter. While there could be more regulatory always seen eye to eye on timing and methods for
measures, policymakers are likely to focus on limiting emissions, ocean acidification, overfishing
defending a minimum 5% gross domestic product and polar ice-melting, they have at times broadly
(GDP) growth target and avoid making drastic joined arms to pull the rest of the world along.
changes that could upset the status quo. More The coming year would be a good time to support
likely, policymakers will pick areas with less John Kerry’s energetic push to get the two nations
political resistance and lower growth impact. For to agree on concrete next steps.
instance, they could endeavor to make education,
health care, elderly care and public housing more Before all the environmental hand-shaking and
accessible to ordinary people. back-slapping end, perhaps the two countries
could do one more thing. It is time for the countries
It is true that the US and China have a deep to actually look forward together rather than
barrel of disagreements, but 2022 will probably look back apart. Both countries need to play the
not be the year the two countries hang out their adult in the room so that we can plan for the next
dirty laundry. Washington will be distracted pandemic. Some believe the world will be living
by midterm elections, Covid mutations, sharp with new Greek lettered Covid variants for a long
internal discord and other internal fish that need time before the true Omega comes. Our world is
to be fried before taking the time to consider overcrowded and filled with urban masses and
all the aspects of its relationship with China. It’s frenetic international travel. It would seem that
possible both the US and China may want to just another pandemic is an inevitable certainty. The
take a breather concerning their current trade information I’m receiving possibly says no.
conflict. Over the next 10 months, President Xi
Jinping needs to make a few checks on his honey- According to Edward Ryan MD, Director of
do-list as well. More important than wrestling International Infectious Disease at Massachusetts
9
each reinvested US$250 million or more in 2021 with the US over trade specifics, President Xi will
grew from 5% to 10%. The number of companies attend two national events: the February Winter
that will reinvest more than US$250 million is Olympics and the mid-fall 20th Communist Party
10%, a 5% increase compared to last year. Congress. At the Beijing games, China will seek to
demonstrate its mastery of both global spectacle
China is likely to switch its focus to supporting and Covid-19. Even more important, President Xi
economic growth in 2022 after regulatory will want a quiet runup to the party congress —
crackdowns that encompassed property, where he is expected to gain another five-year
education, technology and coal use in 2021. The term as leader, elevating him to the historic level
government tightened regulatory oversight in of Mao Zedong and Deng Xiaoping.
2021 to step up efforts to rebalance long-term
growth and in response to growing tensions with Perhaps it would be appropriate for both
the United States. However, the crackdown has countries to hit the pause button so that they
exposed risks to China’s growth model, which both can have a little me-time of self-reflection.
requires careful management of conflicting Perhaps they could use the time to advance an
goals. China’s economy grew by 4.9% in the third effort that both countries ultimately support:
quarter of 2021 compared with a year earlier, mitigating climate change. As Bloomberg noted
down from the 7.9% growth seen in the second late last year, while the US and China have not
quarter. While there could be more regulatory always seen eye to eye on timing and methods for
measures, policymakers are likely to focus on limiting emissions, ocean acidification, overfishing
defending a minimum 5% gross domestic product and polar ice-melting, they have at times broadly
(GDP) growth target and avoid making drastic joined arms to pull the rest of the world along.
changes that could upset the status quo. More The coming year would be a good time to support
likely, policymakers will pick areas with less John Kerry’s energetic push to get the two nations
political resistance and lower growth impact. For to agree on concrete next steps.
instance, they could endeavor to make education,
health care, elderly care and public housing more Before all the environmental hand-shaking and
accessible to ordinary people. back-slapping end, perhaps the two countries
could do one more thing. It is time for the countries
It is true that the US and China have a deep to actually look forward together rather than
barrel of disagreements, but 2022 will probably look back apart. Both countries need to play the
not be the year the two countries hang out their adult in the room so that we can plan for the next
dirty laundry. Washington will be distracted pandemic. Some believe the world will be living
by midterm elections, Covid mutations, sharp with new Greek lettered Covid variants for a long
internal discord and other internal fish that need time before the true Omega comes. Our world is
to be fried before taking the time to consider overcrowded and filled with urban masses and
all the aspects of its relationship with China. It’s frenetic international travel. It would seem that
possible both the US and China may want to just another pandemic is an inevitable certainty. The
take a breather concerning their current trade information I’m receiving possibly says no.
conflict. Over the next 10 months, President Xi
Jinping needs to make a few checks on his honey- According to Edward Ryan MD, Director of
do-list as well. More important than wrestling International Infectious Disease at Massachusetts
9
