Page 18 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
Development Policy and Partnerships, stressed Impacts on China and US
the importance of multilateral collaboration as
the choices policymakers make in the coming Since the start of the COVID-19 epidemic, China
years will decide the course of the next decade. has been striving to maintain a balance between
“The immediate priority should be to ensure safeguarding public health and mitigating the
that vaccines are deployed more widely and epidemic's impact on economy, and stepped up
equitably so the pandemic can be brought under its efforts to contain the outbreak of the fast-
control. But tackling reversals in development spreading variant Omicron and cope with the
progress such as rising inequality will require ensuing downward economic pressure. Though
sustained support,” she said. “In a time of high the virus evolved rapidly, the principles proposed
debt, global cooperation will be essential to help by Chinese President Xi Jinping to secure the well-
expand the financial resources of developing being of the people are more relevant than ever,
economies so they can achieve green, resilient, especially in terms of finding the right solutions to
and inclusive development” (UN, Covid-19). swiftly overcome the challenges. Concerned about
the public well-being, Xi asked authorities across
By October 2022, the chief of the International the country to do whatever it took to save lives.
Monetary Fund (IMF) changed her tune a bit by China has curbed COVID-19 resurgences and kept
claiming that there has been a "fundamental shift" its COVID-19 infections, severe cases and deaths
in the global economy, and she urged countries to at a comparatively low level in the first half of
bring down inflation, put in place responsible fiscal 2022. The key to containing the highly infectious
policy, and jointly support emerging market and Omicron variant lies in targeted prevention and
developing economies. Georgieva said the global control measures. To stop the spread of the
economy was moving "from a world of relative virus at the border, the country has adopted
predictability—with a rules-based framework for differentiated measures from port to port, which
international economic cooperation, low interest include setting up buffer zones and conducting
rates, and low inflation … to a world with more non-contact cargo delivery. Research and
fragility—greater uncertainty, higher economic development of vaccines, rapid-testing reagents
volatility, geopolitical confrontations, and more and medicines have been enhanced to facilitate
frequent and devastating natural disasters.” targeted COVID-19 response. By April 2022, 29
Stressing the urgency to stabilize the economy, vaccines had entered clinical trials, accounting for
Georgieva noted that the global outlook had 19 percent of the world's total. As of December
darkened as a result of multiple shocks, among 2022, over 90 percent of the country’s population
them a conflict, and inflation has become more have been fully vaccinated. Despite mounting
persistent. The IMF ended up downgrading its challenges, the country has been striving to
growth projections three times since October respond to COVID-19 and pursued economic
2021, to only 3.2 percent for 2022 and 2.9 percent and social development in a well-coordinated
for 2023, the IMF chief said, adding that the global manner. In March, Xi called for more effective
institution will downgrade growth for 2023 in its measures to reduce the impact of COVID-19 on
updated World Economic Outlook. "We will flag economic and social development as much as
that the risks of recession are rising," Georgieva possible. Over 20 billion RMB (US$3.13 billion) of
said. The IMF estimates that countries accounting subsidies were issued to farmers to help ensure
for about one-third of the world economy would grain production, while more measures were
experience at least two consecutive quarters of rolled out to reduce the burden on businesses and
contraction by mid-2023. "And, even when growth guarantee disruption-free supply chains to bolster
is positive, it will feel like a recession because the industrial recovery (Xinhua, Xi Focus).
of shrinking real incomes and rising prices," she
added. Overall, the IMF expected a global output The year 2022 was not an easy year for China.
loss of about US$4 trillion between the beginning After registering only 0.4-percent gross domestic
of 2023 and 2026. This is the size of the German product (GDP) growth in the second quarter
economy—a massive setback for the world due to the highly transmissible Omicron flare-
economy (CD, IMF Chief). ups, the Chinese economy regained its footing
18
Development Policy and Partnerships, stressed Impacts on China and US
the importance of multilateral collaboration as
the choices policymakers make in the coming Since the start of the COVID-19 epidemic, China
years will decide the course of the next decade. has been striving to maintain a balance between
“The immediate priority should be to ensure safeguarding public health and mitigating the
that vaccines are deployed more widely and epidemic's impact on economy, and stepped up
equitably so the pandemic can be brought under its efforts to contain the outbreak of the fast-
control. But tackling reversals in development spreading variant Omicron and cope with the
progress such as rising inequality will require ensuing downward economic pressure. Though
sustained support,” she said. “In a time of high the virus evolved rapidly, the principles proposed
debt, global cooperation will be essential to help by Chinese President Xi Jinping to secure the well-
expand the financial resources of developing being of the people are more relevant than ever,
economies so they can achieve green, resilient, especially in terms of finding the right solutions to
and inclusive development” (UN, Covid-19). swiftly overcome the challenges. Concerned about
the public well-being, Xi asked authorities across
By October 2022, the chief of the International the country to do whatever it took to save lives.
Monetary Fund (IMF) changed her tune a bit by China has curbed COVID-19 resurgences and kept
claiming that there has been a "fundamental shift" its COVID-19 infections, severe cases and deaths
in the global economy, and she urged countries to at a comparatively low level in the first half of
bring down inflation, put in place responsible fiscal 2022. The key to containing the highly infectious
policy, and jointly support emerging market and Omicron variant lies in targeted prevention and
developing economies. Georgieva said the global control measures. To stop the spread of the
economy was moving "from a world of relative virus at the border, the country has adopted
predictability—with a rules-based framework for differentiated measures from port to port, which
international economic cooperation, low interest include setting up buffer zones and conducting
rates, and low inflation … to a world with more non-contact cargo delivery. Research and
fragility—greater uncertainty, higher economic development of vaccines, rapid-testing reagents
volatility, geopolitical confrontations, and more and medicines have been enhanced to facilitate
frequent and devastating natural disasters.” targeted COVID-19 response. By April 2022, 29
Stressing the urgency to stabilize the economy, vaccines had entered clinical trials, accounting for
Georgieva noted that the global outlook had 19 percent of the world's total. As of December
darkened as a result of multiple shocks, among 2022, over 90 percent of the country’s population
them a conflict, and inflation has become more have been fully vaccinated. Despite mounting
persistent. The IMF ended up downgrading its challenges, the country has been striving to
growth projections three times since October respond to COVID-19 and pursued economic
2021, to only 3.2 percent for 2022 and 2.9 percent and social development in a well-coordinated
for 2023, the IMF chief said, adding that the global manner. In March, Xi called for more effective
institution will downgrade growth for 2023 in its measures to reduce the impact of COVID-19 on
updated World Economic Outlook. "We will flag economic and social development as much as
that the risks of recession are rising," Georgieva possible. Over 20 billion RMB (US$3.13 billion) of
said. The IMF estimates that countries accounting subsidies were issued to farmers to help ensure
for about one-third of the world economy would grain production, while more measures were
experience at least two consecutive quarters of rolled out to reduce the burden on businesses and
contraction by mid-2023. "And, even when growth guarantee disruption-free supply chains to bolster
is positive, it will feel like a recession because the industrial recovery (Xinhua, Xi Focus).
of shrinking real incomes and rising prices," she
added. Overall, the IMF expected a global output The year 2022 was not an easy year for China.
loss of about US$4 trillion between the beginning After registering only 0.4-percent gross domestic
of 2023 and 2026. This is the size of the German product (GDP) growth in the second quarter
economy—a massive setback for the world due to the highly transmissible Omicron flare-
economy (CD, IMF Chief). ups, the Chinese economy regained its footing
18
