Page 330 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
each other—doesn't mean China will scale back its finance, tourism, telecommunications, construction,
opening-up or seek development behind closed advertising, computing and accounting. The value
doors. China will unwaveringly expand all-around of China's trade in services jumped 20.7% on a
high-level opening-up and push for an economic yearly basis to 3.39 trillion RMB (US$491.23 billion)
globalization that is more open, inclusive, balanced in the first seven months of 2022. The development
and beneficial to all. Wei Jianguo, vice-chairman of China's trade in services reflects the country's
of the China Center for International Economic status as the world's leading manufacturer and
Exchanges, said he expects China to undertake the goods-services linkages that stem from China's
greater opening-up in the following years and roll manufacturing prowess. Services liberalization
out a flurry of win-win measures that strengthen could enlarge the basket of competitive exports
international cooperation (Zheng). and imports, which will underpin China's quest for
industrial upgrading, decarbonization and quality of
The nation has reduced the industries covered life improvements. Many policy measures in China
by a negative list for foreign investment for five have demonstrated the government's resolve to
consecutive years. The off-limit items for foreign expand opening-up in the financial sector and
investors were cut to 31 in the 2021 version of the improve connectivity in capital markets, such as
negative list from 33 in the 2020 version, while in free capital inflows, outflows and free currency
the 2021 negative list for foreign investment in exchange policies in Special Areas (Zhong and Liu).
industries under pilot free-trade zones was reduced
to 27 from 30. A negative list refers to specific areas China announced in September 2022 that the
of industry where foreign investors are not allowed country would expand the Stock Connect scheme
to operate. China introduced a negative list for that links the mainland and Hong Kong markets, a
cross-border trade in services at the Hainan Free further step to boost cooperation between the two
Trade Port in 2021. Foreign investors can operate capital markets. The China Securities Regulatory
in industries not included in the list. The move by Commission (CSRC) will include more eligible Hong
China will relax market access for cross-border Kong primary-listed foreign companies and more
trade in services, and expand the scope of foreign companies listed on the Shanghai and Shenzhen
investment in advanced manufacturing, scientific exchanges into the Stock Connect program. The
and technological innovation and modern services commission will study the introduction of more
in the coming years. China plans to conclude the renminbi securities trading counters under the
text negotiations on the World Trade Organization's southbound trading of the Stock Connect to push
multilateral agreement on investment facilitation the internationalization of the yuan. Moreover,
for development by the end of 2022. Launched the CSRC will support the issuance of mainland
by a group of developing and least-developed government bond futures in Hong Kong and boost
WTO members in 2017, the joint initiative aims to the two-way opening-up of the mainland treasury
improve the investment and business climate, and bond futures market to realize coordinated
make it easier for investors in all sectors of the development in two markets. For the next stage,
economy to invest. In addition to seeking to join CSRC will coordinate development and security,
the Digital Economy Partnership Agreement and and strive to stabilize the economy with stronger
the Comprehensive and Progressive Agreement for opening-up measures to promote the high-quality
Trans-Pacific Partnership, the government will push development of the capital market (PRC).
the implementation of upgrading strategies in the
pilot free trade zones, support the growth of trade In other security news, US regulators have
in services and provide foreign companies with gained full access to the audits of Chinese
greater transparency and certainty in the services companies for the first time, reducing the threat
field. These programs will explore ways to improve that tech giants such as Alibaba (BABA) and JD.com
administrative systems and policies, and advance (JD) could be kicked off US stock exchanges. The
trade facilitation and the integration of traditional announcement marks a major breakthrough in a
manufacturing and service industries. In contrast to years long standoff over how Chinese companies
goods trade, trade in services refers to the sale and listed on Wall Street should be regulated. It will
delivery of intangible services such as transportation, come as a huge relief for these firms and investors
330
each other—doesn't mean China will scale back its finance, tourism, telecommunications, construction,
opening-up or seek development behind closed advertising, computing and accounting. The value
doors. China will unwaveringly expand all-around of China's trade in services jumped 20.7% on a
high-level opening-up and push for an economic yearly basis to 3.39 trillion RMB (US$491.23 billion)
globalization that is more open, inclusive, balanced in the first seven months of 2022. The development
and beneficial to all. Wei Jianguo, vice-chairman of China's trade in services reflects the country's
of the China Center for International Economic status as the world's leading manufacturer and
Exchanges, said he expects China to undertake the goods-services linkages that stem from China's
greater opening-up in the following years and roll manufacturing prowess. Services liberalization
out a flurry of win-win measures that strengthen could enlarge the basket of competitive exports
international cooperation (Zheng). and imports, which will underpin China's quest for
industrial upgrading, decarbonization and quality of
The nation has reduced the industries covered life improvements. Many policy measures in China
by a negative list for foreign investment for five have demonstrated the government's resolve to
consecutive years. The off-limit items for foreign expand opening-up in the financial sector and
investors were cut to 31 in the 2021 version of the improve connectivity in capital markets, such as
negative list from 33 in the 2020 version, while in free capital inflows, outflows and free currency
the 2021 negative list for foreign investment in exchange policies in Special Areas (Zhong and Liu).
industries under pilot free-trade zones was reduced
to 27 from 30. A negative list refers to specific areas China announced in September 2022 that the
of industry where foreign investors are not allowed country would expand the Stock Connect scheme
to operate. China introduced a negative list for that links the mainland and Hong Kong markets, a
cross-border trade in services at the Hainan Free further step to boost cooperation between the two
Trade Port in 2021. Foreign investors can operate capital markets. The China Securities Regulatory
in industries not included in the list. The move by Commission (CSRC) will include more eligible Hong
China will relax market access for cross-border Kong primary-listed foreign companies and more
trade in services, and expand the scope of foreign companies listed on the Shanghai and Shenzhen
investment in advanced manufacturing, scientific exchanges into the Stock Connect program. The
and technological innovation and modern services commission will study the introduction of more
in the coming years. China plans to conclude the renminbi securities trading counters under the
text negotiations on the World Trade Organization's southbound trading of the Stock Connect to push
multilateral agreement on investment facilitation the internationalization of the yuan. Moreover,
for development by the end of 2022. Launched the CSRC will support the issuance of mainland
by a group of developing and least-developed government bond futures in Hong Kong and boost
WTO members in 2017, the joint initiative aims to the two-way opening-up of the mainland treasury
improve the investment and business climate, and bond futures market to realize coordinated
make it easier for investors in all sectors of the development in two markets. For the next stage,
economy to invest. In addition to seeking to join CSRC will coordinate development and security,
the Digital Economy Partnership Agreement and and strive to stabilize the economy with stronger
the Comprehensive and Progressive Agreement for opening-up measures to promote the high-quality
Trans-Pacific Partnership, the government will push development of the capital market (PRC).
the implementation of upgrading strategies in the
pilot free trade zones, support the growth of trade In other security news, US regulators have
in services and provide foreign companies with gained full access to the audits of Chinese
greater transparency and certainty in the services companies for the first time, reducing the threat
field. These programs will explore ways to improve that tech giants such as Alibaba (BABA) and JD.com
administrative systems and policies, and advance (JD) could be kicked off US stock exchanges. The
trade facilitation and the integration of traditional announcement marks a major breakthrough in a
manufacturing and service industries. In contrast to years long standoff over how Chinese companies
goods trade, trade in services refers to the sale and listed on Wall Street should be regulated. It will
delivery of intangible services such as transportation, come as a huge relief for these firms and investors
330
