Page 20 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
quickly by attaining a 3.9-percent rebound in Q3 of goods also logged steady expansion. In the
and continues to serve as a major global growth January-November period, the country's foreign
engine. The V-shaped recovery came along trade of goods grew 8.6 percent year on year
with continuous improvement in the quality of to 38.34 trillion RMB. A country with the world's
growth. In the first 11 months of the year, fixed- biggest and most complete industrial system,
asset investment in the high-tech sector climbed China played a crucial role in mitigating the impact
19.9 percent year on year, while the added value of the global industrial chain snags in 2022. To
of high-tech manufacturing rose 8 percent, stabilize the global industrial chains, many cities
4.2 percentage points higher than the total for in China have expanded their transportation
industrial enterprises above the designated size. services and launched new direct air and sea
During the period, the sales and export volumes routes to facilitate the cross-border flow of people
of China's new energy vehicles both ranked first and goods, thereby bolstering international trade
globally, and the country's e-commerce sector and global recovery. China-Europe freight trains
gathered strong momentum in the first 11 months, have also been playing a critical role in helping
with the share of online retail sales expanding stabilize the international supply chain. As of the
significantly. Meanwhile, great strides were end of October 2022, 82 China-Europe freight
made in technological innovation. In the Global train routes had been launched reaching 204
Innovation Index 2022 released by the World cities in 24 European countries. These routes have
Intellectual Property Organization, China has handled 62,000 freight train trips, transporting
risen to the 11th rank among the 132 economies 5.76 million 20-foot equivalent units of goods.
surveyed. Though China's annual GDP growth By strengthening the resilience of industrial and
rate undershot the target set at the beginning of supply chains, China has helped ease the inflation
the year, many other development goals have pressure globally (Xinhua, Resilient).
been well accomplished. The optimized COVID-19
response, combined with existing and incremental By December 2022 senior Chinese economic
policy, is expected to exert a major positive officials widened their outlooks and said the
impact on economic recovery. Normalcy in life optimized response China adopted to deal with
and work should return at a brisk pace in the first COVID-19 would look more like a "J-curve effect"
half of 2023, particularly in the second quarter, than the “V-curve” on the economy that will help
as economic vitality is unleashed. As the world's it gain strong growth momentum in 2023. It may
largest trader of goods and second-largest trader cause disruptions to the economy in the short-
of services, China has taken concrete actions to term, but from the perspective of a whole year
advance higher-standard opening-up in 2022, outlook, it is a boon," said Han Wenxiu, executive
delivering greater benefits to the rest of the world. deputy director of the office of the Central
These steps include accelerating the development Committee for Financial and Economic Affairs.
of pilot free trade zones and the Hainan Free He said that the return to normalcy in life and
Trade Port, putting into effect a shorter negative work will pick up the pace in the first half of 2023,
list for foreign investment, and rolling out new especially in the second quarter, with increasing
measures to encourage manufacturing-focused economic vitality unleashed. "We have the
foreign investment. Attracted by the huge market, confidence, conditions, and capacity to turn China's
solid economic growth and an improving business economy for the better as a whole," Han said at a
environment, a host of multinationals are betting think-tank forum held after the Central Economic
on the Chinese market and doubling down their Work Conference, at which Chinese leaders
operation and investment here despite the gloomy decided priorities for the country's economic work
global investment sentiment. In the first 10 in 2023. The tone-setting conference was held
months of 2022, foreign direct investment (FDI) in after China optimized its anti-virus approach to
the Chinese mainland in actual use went up 14.4 allow home quarantine for asymptomatic and mild
percent year on year to 1.09 trillion RMB. The high- cases and cut mass nucleic acid testing, among
tech manufacturing sector reported much stronger others. The change was made in accordance with
growth, with FDI inflows surging 57.2 percent year the weakened pathogenicity of the virus. The
on year in the period. The country's foreign trade focus of the epidemic response strategy was thus
20
quickly by attaining a 3.9-percent rebound in Q3 of goods also logged steady expansion. In the
and continues to serve as a major global growth January-November period, the country's foreign
engine. The V-shaped recovery came along trade of goods grew 8.6 percent year on year
with continuous improvement in the quality of to 38.34 trillion RMB. A country with the world's
growth. In the first 11 months of the year, fixed- biggest and most complete industrial system,
asset investment in the high-tech sector climbed China played a crucial role in mitigating the impact
19.9 percent year on year, while the added value of the global industrial chain snags in 2022. To
of high-tech manufacturing rose 8 percent, stabilize the global industrial chains, many cities
4.2 percentage points higher than the total for in China have expanded their transportation
industrial enterprises above the designated size. services and launched new direct air and sea
During the period, the sales and export volumes routes to facilitate the cross-border flow of people
of China's new energy vehicles both ranked first and goods, thereby bolstering international trade
globally, and the country's e-commerce sector and global recovery. China-Europe freight trains
gathered strong momentum in the first 11 months, have also been playing a critical role in helping
with the share of online retail sales expanding stabilize the international supply chain. As of the
significantly. Meanwhile, great strides were end of October 2022, 82 China-Europe freight
made in technological innovation. In the Global train routes had been launched reaching 204
Innovation Index 2022 released by the World cities in 24 European countries. These routes have
Intellectual Property Organization, China has handled 62,000 freight train trips, transporting
risen to the 11th rank among the 132 economies 5.76 million 20-foot equivalent units of goods.
surveyed. Though China's annual GDP growth By strengthening the resilience of industrial and
rate undershot the target set at the beginning of supply chains, China has helped ease the inflation
the year, many other development goals have pressure globally (Xinhua, Resilient).
been well accomplished. The optimized COVID-19
response, combined with existing and incremental By December 2022 senior Chinese economic
policy, is expected to exert a major positive officials widened their outlooks and said the
impact on economic recovery. Normalcy in life optimized response China adopted to deal with
and work should return at a brisk pace in the first COVID-19 would look more like a "J-curve effect"
half of 2023, particularly in the second quarter, than the “V-curve” on the economy that will help
as economic vitality is unleashed. As the world's it gain strong growth momentum in 2023. It may
largest trader of goods and second-largest trader cause disruptions to the economy in the short-
of services, China has taken concrete actions to term, but from the perspective of a whole year
advance higher-standard opening-up in 2022, outlook, it is a boon," said Han Wenxiu, executive
delivering greater benefits to the rest of the world. deputy director of the office of the Central
These steps include accelerating the development Committee for Financial and Economic Affairs.
of pilot free trade zones and the Hainan Free He said that the return to normalcy in life and
Trade Port, putting into effect a shorter negative work will pick up the pace in the first half of 2023,
list for foreign investment, and rolling out new especially in the second quarter, with increasing
measures to encourage manufacturing-focused economic vitality unleashed. "We have the
foreign investment. Attracted by the huge market, confidence, conditions, and capacity to turn China's
solid economic growth and an improving business economy for the better as a whole," Han said at a
environment, a host of multinationals are betting think-tank forum held after the Central Economic
on the Chinese market and doubling down their Work Conference, at which Chinese leaders
operation and investment here despite the gloomy decided priorities for the country's economic work
global investment sentiment. In the first 10 in 2023. The tone-setting conference was held
months of 2022, foreign direct investment (FDI) in after China optimized its anti-virus approach to
the Chinese mainland in actual use went up 14.4 allow home quarantine for asymptomatic and mild
percent year on year to 1.09 trillion RMB. The high- cases and cut mass nucleic acid testing, among
tech manufacturing sector reported much stronger others. The change was made in accordance with
growth, with FDI inflows surging 57.2 percent year the weakened pathogenicity of the virus. The
on year in the period. The country's foreign trade focus of the epidemic response strategy was thus
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