Shanghai's Municipal Government released a plan to enhance and boost the development of foreign research and development (R&D) centers on Wednesday from nine aspects, including relaxed regulation of cross border outflow of non-listed or non- categorized data, with the aim to build the city into an international sci-tech innovation hub.
The plan, which will take effect on Friday, will attract and support foreign R&D centers to form clusters and upgrade capability, amid a national campaign to improve business climate for foreign companies and encouragement policy measures that support foreign companies to set up R&D centers in China.
Eligible foreign-funded R&D centers will benefit from a series of policy support measures, including customs clearance facilitation for cross-border R&D materials, allowing foreign-funded R&D centers to openly accessing services from common technology R&D platforms and sci-tech information according to rules as well as funding support.
Foreign-funded R&D centers will be supported to engage cooperation and high-risk research projects with the municipality's sci-tech institutions and enterprises, according to a post on the official WeChat of the municipality on Wednesday.
The plan will also support the lawful cross border flow of R&D data, improve the level of protection of intelligent property rights (IPRs) and elevate support in talent acquisition and development.
Foreign-funded R&D centers will be supported to set up an open innovation platform, conduct cross border incubator service and build proof-of-concept center. They are also encouraged to conduct technological research in joint efforts with various Chinese innovative entities, co-build labs, industrial colleges and training bases.
The plan calls for facilitation of cross border data flow under the premise of relevant law and regulations. Foreign R&D centers are not required to file for declaration for outflow of data not subject to regulation under the key list and catalogue in the data classification and hierarchical protection scheme of the Shanghai pilot free trade zone.
Shanghai will conduct biosafety risk assessment for imported animal and plant genetically modified organisms and biological materials, and the eligible imports for R&D purposes will enjoy customs facilitation.
In 2023, China's scientific and technological R&D investment surpassed 3.3 trillion yuan ($458.5 billion), up 8.1 percent year-on-year.
A number of foreign companies have increased their number of R&D centers in China.
US-based Apple announced on Tuesday a plan to open a new research and development (R&D) center in Shenzhen city, South China's Guangdong Province while upgrade its Shanghai R&D center to support product manufacturing.
A number of foreign-backed companies in China, from Apple to German automotive supplier Bosch, are announcing plans to expand their China presence recently, as China's fast growing vast market provides a platform for strong business performance.
The Hong Kong-Zhuhai-Macao Bridge (HZMB) in South China's Guangdong Province has facilitated record cross-boundary vehicle traffic as Hong Kong residents' northbound travel to the mainland is becoming trendy.
China Media Group (CMG) reported that as of Saturday at 9 pm, the HZMB port had facilitated a total of 500,000 cross-boundary vehicles under the Northbound Travel for Hong Kong Vehicles program since it entered operation on July 1, 2023, showed increasing personnel exchanges between Hong Kong and Guangdong.
A Hong Kong resident surnamed Luo told the Global Times on Sunday that driving her private car from Hong Kong to Zhuhai was much easier than she expected.
"I left Hong Kong at 9 am, passed customs clearance at 11 am, and even had time to have dim sum at Zhuhai in the morning," said Luo, adding that she can return to Hong Kong in one day after shopping and having a massage.
"It costs about 5,000 yuan ($704) in total for the first year of the program, including registering a driving license, insurance and other fees," she noted, and pointed out that certain phases of the program could be further optimized such as reducing application times and fees.
Boosted by the simplified cross-boundary process, self-driving tours to the mainland have become one of the most popular trip modes for Hong Kong residents. Since the program began, the average monthly growth of Hong Kong vehicles through Zhuhai Port reached 58.17 percent.
The average daily vehicle volume on weekends and holidays in 2024 reached 5,400. On February 13, the fourth day of the 2024 Spring Festival holidays, the daily vehicle volume reached a record of 8,300, said the report.
According to the official website of the program, it allows eligible Hong Kong private cars to travel between Hong Kong and Guangdong without the need to obtain regular quotas to access the HZMB.
Under the program, Hong Kong residents can drive to Guangdong for business, family visits or sight-seeing on a short-term basis, which could make good use of the HZMB and promote the development of the Guangdong-Hong Kong-Macao Greater Bay Area, the website showed.
China has set its 2024 GDP growth target at around 5 percent, which has been viewed as a signal of strong confidence that the world's second-largest economy could navigate through multifaceted pressure and boost a steady expansion this year.
Unsurprisingly, this practical and realistic objective has met with skeptical and negative comments from some foreign media outlets, with some saying the goal is too "challenging" to meet, citing exaggerated downward pressure and insufficient stimulus.
Chinese national lawmakers and political advisors said the bearish rhetoric lays bare the deeply-rooted Western ideological prejudice against China and certain countries' "sour-grape mindset." They called for a more objective and comprehensive assessment of an economy that has well-built fundamentals, a "later-comer" advantage in new economy, rising middle-income population and abundant policy latitude.
A 5-percent GDP target also bodes well for the profitability of foreign companies operating in China, foreign business representatives and economists said. And the recent influx of foreign investments and global funds also speak volume for the allure of the Chinese market, serving as a fresh piece of evidence debunking the pessimistic narratives, observers pointed out.
The big picture
In the first two months of 2024, China's foreign trade scale hit a record high, reaching6.61 trillion yuan (about$930.96 billion) in yuan-denominated terms, an increase of 8.7 percent year-on-year, customs data showed on Thursday.
"The Chinese economy is expected to start off with a good opening in the first quarter of 2024," Zheng Shanjie, head of the National Development and Reform Commission (NDRC), the country's top economic planner, said on Wednesday.
"The around 5-percent GDP growth target comes after scientific reasoning and aligns with the long-term development goals laid out by the 14th Five-Year Plan (2021-25).It is a positive upward target that can be achieved with strenuous work," Zheng said.
The comment was made at a press briefing held on Wednesday during the ongoing two sessions. Zheng, along with several government officials in charge of China's economic and trade affairs, dwelled on the Government Work Report delivered on Tuesday and further elaborated on the country's policy stances. Their remarks also offered a timely response to certain public concerns.
The Global Times noticed through various group discussions on Wednesday and Thursday that the key economic goals set by the Government Work Report have inspired widespread strong confidence among deputies and political advisors, who come from all walks of life and represent the voices across the society.
"Setting a goal of achieving around 5 percent GDP growth requires a proactive approach as it will involve hard work, overcoming obstacles and challenges. However, with determination and perseverance, this goal can be achieved," Ning Jizhe, a member of the 14th National Committee of CPPCC and the former chief of the National Bureau of Statistics, said in an exclusive interview with the Global Times.
Yin Yanlin, Vice Chairman of the Economic Committee for the 14th National Committee of Chinese People's Political Consultative Conference (CPPCC), told the Global Times that the 5-percent growth rate will make China one of fastest growing economies in the world, as most developed countries have a growth below 3 percent. A 5-percent GDP target could only be achieved by a developing nation as large as China.
Justin Lin Yifu, a member of the Standing Committee of 14thNational Committee of CPPCC and former chief economist of the World Bank, also voiced confidence that China has the potential to meet the growth target.
"China's GDP is currently 65 percent to 70 percent of US' GDP based on the exchange rate. That translates to an 8-percent growth potential every year until 2035 if the US economy maintains stable growth. Taking account of the global and internal economic situation, achieving a 5-percent GDP growth is possible when we have an 8-percent growth potential," Lin told the Global Times in a group interview.
According to Lin, when other countries were at the stage of development where China is currently at, their economies were performing relatively well. For instance, during the stage of economic catch-up, Japan, South Korea and Germany all achieved economic growth rates of 8 percent or even higher.
Lin stressed that China, as a large developing economy, is still at the stage of industrial upgrade and thus lags behind developed countries, but this renders the country a "latecomer advantage."
In 2023, China's per capita GDP reached about $12,500, which makes the country still the world's largest developing nation.
"We're still a developing nation, with a gap behind those developed countries, indicating significant rooms for development and growth potential. How could China's economy reach a peak at such a time?" Ning said, pushing against certain allegations that the Chinese economy has peaked.
Ning added that the badmouthing is not only an unscientific judgment, but also a malicious attempt to discredit China. Some deputies also pointed out that the distortion is fueled by the ideological biases of certain Western countries, who are nervous because of China's rise.
"The outside world may have no idea o fhow much endeavors the Chinese policymakers are willing to pour in achieving the GDP goal,"Yin noted.
A New York Times article said on Tuesday that China only announced modest measures to stimulate growth in face with various headwinds, "refraining from the kind of bold moves the business sector has been looking for."
As part of the country's proactive fiscal policy, the Government Work Report said China will issue ultra-long special treasury bonds in the coming years. Pan Gongsheng, governor of China's central bank, said on Wednesday that China's required reserve ratio (RRR) for the banking sector is at 7 percent on average now, and there is still room for a subsequent RRR cut.
"China's policy toolbox is still sufficient, and concrete policy efforts are needed in the face of a complicated domestic and external environment," Pan said.
A key contributor
Against the backdrop of China's high-quality development trajectory, some economists also refuted the "Peak China" and "Chinese economy Japanization" claims, by identifying an array of China's new growth engines.
The Government Work Report vowed that China will strive to modernize the industrial system and develop new quality productive forces at a faster pace.
Lin said it is important that China sits at the same starting line as other developed nations in terms of new economy industries, such as artificial intelligence and digital economy.
"With vast human capital, sheer market size and industrial chain advantage, the country carries greater potential in fostering potential new innovation drives compared with other high-income countries," Lin said, while also taking note of continuous drives from traditional industries in the years to come.
Lin said that from 2036 to 2050, China has an economic potential to realize a growth range between 3 percent and 4 percent, based upon which China's per capita GDP could reach half that of the US by 2049. As the Chinese population is four times that of the US, the growth trajectory means China's economic output will be twice of the US by 2049, making China the largest economy in the world and the largest contributor to the global economy.
Political advisors also rejected the idea of Chinese economy risks "lost decades" like Japan in the coming years.
Han Baojiang, a member of the National Committee of CPPCC and a professor at Party School of the Central Committee of the CPC, told the Global Times that the Chinese economy is fundamentally different from the Japanese economy back then, as China is home to a 400 million middle-income population and has a vast domestic demand, whereas Japan only has a narrow domestic market space, which prompted a large amount of Japanese capital to flee the country.
China's 5-percent GDP growth this year also will draw in more foreign investments, as only when Chinese economy expands can the foreign firms have the conditions to make a profit, and only when they make a profit can they continue investing, thus engaging in a "virtuous circle," Yin stressed.
Bloomberg reported on Tuesday that global funds are returning to China stocks, citing Morgan Stanley analysts. Kinger Lau, chief China equity strategist at Goldman Sachs, and his team maintain a cautiously optimistic outlook on the Chinese stock market, anticipating that economic improvements will drive a rebound in corporate profits.
European aerospace corporation Airbus said in a statement sent to the Global Times that the economic policies released during the two sessions show China's determination to boost its economy. And the growth of China's economy will surely boost the global economic performance as well.
The assertion that the Hong Kong Special Administrative Region (HKSAR) has become a "ruin of an international financial center" is groundless, as the basic elements underpinning Hong Kong's status as a global financial center have not changed, and the region has been further leveraging its role as a super connector between the Chinese mainland and the rest of the world, Brian David Li Man-bun, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and co-chief executive of the Bank of East Asia (BEA), told the Global Times on Thursday.
"Hong Kong has a number of competitive edges in the global financial market, including the common law system, a simple low tax system and professional services and regulatory systems that are in line with international standards," Li said.
BEA is a Hong Kong public bank based in the HKSAR.
He also highlighted the guarantee on free flows of capital under the Basic Law, good financial infrastructure, a stable and favorable business environment as well as a stable and efficient banking system, among other things.
In 2022, Hong Kong received a total of $117.7 billion in foreign direct investment, ranking fourth in the world after the US, the Chinese mainland and Singapore, according to the UN Conference on Trade and Development.
In addition, "Hong Kong has made significant progress in such finance-related sectors as green finance, fintech and offshore yuan business, which also paves the way for its development," Li added.
As a next step, Li suggested that Hong Kong integrate further into the national development, and make a greater contribution to the country's high-level opening-up. These efforts would also be conducive to enhancing the city's global financial status, while providing a solid foundation for its economic recovery this year.
The Central Financial Work Conference held last October called for accelerating the building of a nation with a strong financial sector. Pan Gongsheng, the governor of the People's Bank of China (PBC), the country's central bank, said at a press briefing on Wednesday that expanding opening-up is an important propeller and assurance of the high-quality development of China's financial industry.
Li noted that Hong Kong, as the world's largest offshore yuan business center, has an outsize role to play in facilitating the globalization of the yuan.
"More countries and regions have shown concern about excessive reliance on the US dollar amid rising geopolitical tensions, and many, having strong confidence in the Chinese mainland's economic outlook, have boosted their use of the yuan in payments, investments and reserves," Li explained.
Li also urged Hong Kong to double down on its efforts to expand issues of yuan-denominated financial products, such as promoting the Hong Kong dollar-yuan dual-currency share counter service across the equity market.
Li, as a veteran banker, has witnessed the rising asset management demand of Chinese mainland residents in the past decade, which he said was partly thanks to the expansion of the 400 million middle-income populations.
He suggested expanding the scope of the financial connect programs between the Chinese mainland and Hong Kong, in addition to the Stock, Bond and Cross-Boundary Wealth Management connects.
The Stock Connect, announced in 2014, now contributes 11 percent of the Hong Kong Exchanges and Clearing Ltd's revenue, and 15 percent of average daily turnover in Hong Kong, according to a report by Fitch Ratings.
The average daily turnover of the Bond Connect surged to almost 49 billion yuan in January 2024 from 3.6 billion yuan in 2018, the report said.
Liu Qingfeng, a deputy to the National People's Congress and chairman of Chinese AI company iFlytek, put forward a motion suggesting the country formulate an AGI (artificial general intelligence) development plan, aiming to promote the systematic growth of the country's AGI sector, while narrowing the technology gap between China and the US, according to a document sent to the Global Times on Tuesday by iFlytek.
The development plan could be initiated and implemented at the state level, in a bid to continuously narrow the gap between the US and China in AGI general base platforms and shore up China's industrial AI applications, according to Liu.
The plan should make up for the shortcomings in the Next Generation Artificial Intelligence Development Plan released in 2017, to cater to a wide range of aspects from forming independent and controllable computing power, high-quality data sharing to cultivation of talent in AGI development.
Liu proposed nine measures to accelerate the development of the AGI sector.
For instance, Liu vowed to ramp up support for the research and development (R&D) of China's general large language models (LLMs) in the form of special projects targeting power, data and algorithms in the upcoming five years.
Liu suggested local governments support R&D for LLMs and the construction of infrastructure for developing AGI industrial ecosystem, while formulating new policies to promote the application of large-scale models in sectors such as manufacturing.
Regarding global cooperation, Liu proposed to set up cooperation projects under the China-proposed Belt and Road Initiative, supporting the R&D of multilingual LLMs and their broad applications.
Liu also proposed to accelerate the formation of an independent and controllable ecosystem centered on domestically developed LLMs, while propelling China's vigorous development in the ecology construction utilizing the AI Plus initiative.
China will step up research and development (R&D) and application of big data and AI, launch an AI Plus initiative, and build digital industry clusters with international competitiveness, according to a government work report submitted to the NPC for deliberation.
Meanwhile, China vows to rely on scientific and technological innovation to lead the modernization of its industrial system and move faster to develop new quality productive forces in the Government Work Report.
iFlytek has integrated its LLMs into various sectors from education, healthcare, to the legal profession, and has been cooperating with major players from 12 industries to release corresponding LLMS, covering finance, automotive, culture and tourism, along with other ones since October 2023, the company said in a separate statement sent to the Global Times.
Amid China's rapid development of emerging industries including AI, some provincial plans have already covered the building of pilot zones focused on future industries such as quantum tech, 6G, life science, AI, and humanoid robotics.
For instance, South China's Guangdong Province released 22 measures to develop local AGI sector in November 2023, with a goal to achieve the largest scale of intelligent computing power in the country while obtaining a leading position worldwide.
China’s Guangdong-Hong Kong-Macao Greater Bay Area (GBA) now is accelerating the economic integration and coordination with surrounding regions as the area has become one of the most promising growth poles of the worlds.
As of now, the economic aggregate of the GBA has surpassed 13 trillion yuan ($1.83 trillion), as its patent ability has topped among global four bay areas, said Liu Jieyi, spokesperson for the second session of the 14th Chinese People's Political Consultative Conference (CPPCC) National Committee.
Central Committee of the Communist Party of China and the State Council on February 18, 2019, issued the outline development plan for the GBA. In the past five years, the GBA has become one of the most open and economically dynamic areas in China, which was planned to be fostered as a leading region for Chinese path to civilization and high-quality development, said Liu.
CPPCC has been paying attention to the economic development of Hong Kong and Macao basing on the master development plan of the GBA, including promoting regional integrated development and policy coordination.
The construction of multiple cooperation zones such as Hengqin, Qianhai and Nansha was highlighted to support the master plan, and the CPPCC will further accelerated the connectivity of infrastructure and policy in the region, Liu noted.
During the 2024 Spring Festival holidays, people in Chinese mainland, Hong Kong and Macao made a total of 5.01 million of cross-boundary trips, and the Hong Kong-Zhuhai-Macao Bridge facilitated record volume of passenger and vehicle.
Data from Hong Kong tourism authority showed that the occupancy of Hong Kong’s hotel crossed 80 percent during the holiday, indicated increasing connectivity among peoples in the GBA and integrated development trend, said Liu.
China’s central government announced on February 23 this year to expand the Individual Visit Scheme to Qingdao in East China’s Shandong Province and Xi'an in Northwest China’s Shaanxi Province, which allowed solo travel of residents from the two cities to Hong Kong from March 3, further uplift personnel flow and release consumption potential.
AutoFlight, a domestic pioneer in electric vertical take-off and landing aircraft (eVTOL), has conducted what it says the world's first inter-city electric air-taxi demonstration flight in South China's Guangdong Province.
The flight took place on Tuesday between Shenzhen and Zhuhai, which aims to promote activity in low-altitude airspace. The general aviation sector will play a dominant role in that effort, which will include eVTOL aircraft.
The flight took off from Shekou Cruise Home Port in Shenzhen and landed in Jiuzhou Port in neighboring Zhuhai. The straight-line distance between the two places is less than five kilometers, but traveling by car means taking a detour by way of the Nansha Bridge or Humen Bridge, which can take two to three hours.
The flight will provide a faster option for passengers shuttling between Shenzhen and Zhuhai, said AutoFlight. The aircraft is expected to cut the need for traditional airports and runways and shorten the inter-city trip to just 20 minutes.
The company said that the core modules are domestically produced. The craft is designed to carry five people at up to 200 kilometers per hour, and it can operate for up to 250 kilometers on a single charge. According to the company, it's the only aircraft in the world with that flight range.
It's applying for an airworthiness certificate and is expected to start regular passenger flights in 2026.
The successful maiden flight underscores China's rising competitiveness in terms of research and development in aviation. The aircraft may also be used for logistics and sightseeing, said market insiders.
Many companies around the world aim to produce and operate such aircraft, Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Thursday. It will serve booming transportation demand in the Guangdong-Hong Kong-Macao Greater Bay Area, Wang added.
The fast development of the low-altitude economy in Shenzhen is backed by China's growing efforts in the field, including policy support. Chinese policymakers have attached great importance to the development of the low-altitude economy as a strategic emerging sector, experts said.
The estimated value of the nation's low-altitude economy surpassed 500 billion yuan ($70 billion) in 2023, which is expected to quadruple by 2030, according to the Civil Aviation Administration of China. There are 689 general aviation firms in China, with 3,173 general aviation aircraft and 451 general aviation airports.
By the end of 2023, there were more than 1,700 drone companies in Shenzhen, a global innovation hub, with an annual output value of 96 billion yuan.
Among the provinces and cities across China that have recently released their population data for 2023, the net inflow of population in Northeast China's Jilin and Liaoning provinces is worth noting.
While Jilin experienced a net inflow of 43,400 people, putting an end to the trend of population outflow that had persisted for nearly 13 years, Liaoning witnessed a net inflow of 86,000 people, marking the conclusion of a trend of population loss that had lasted for almost 11 years.
GDP growth rates of each province in 2023 have also been released, with Jilin and Liaoning outperforming the national average.
Does the continuous popularity of winter tourism in Northeast China, along with the recent population changes and economic data in Jilin and Liaoning provinces, suggest that the economic and population development in the Northeast region may be starting to reverse its decline and return toward a growth trajectory?
The revitalization of Northeast China has been a topic of continuous attention. One common mistake in past discussions about the development of the region is the reversal of cause and result. Issues such as population size are not the reasons for the relatively lackluster development of Northeast China over recent years, but rather the results. To observe the opportunities and challenges facing the current development of Northeast China, it is necessary to have a historical perspective.
In history, the Northeast region of China, due to its geographical and climatic factors, has not been a densely populated, culturally developed, or commercially prosperous area. In modern times, the rise of the Northeast region can be attributed to three main reasons:
First, the Industrial Revolution that emerged in the 18th century, which led to a significant increase in the global demand for raw materials such as coal, steel, and timber. This shift in demand caused a change in the economic development orientation of regions.
Second, during the process of globalization, multiple countries have frequently engaged in geopolitical conflicts to compete for resources.
Third, given the technological level and geographical conditions at the time, the development of traditional economically advanced regions had reached a bottleneck, temporarily unable to provide more economic opportunities and employment. As a result, more businesses and individuals chose to return or relocate to underdeveloped areas in search of new opportunities.
At that time, the Northeast region relied on its abundant natural resource reserves, the influx of residents from inland regions, and its advantageous geographical location at the junction of multiple countries in the Far East, leading to a rapid economic takeoff.
In the 1920s, Harbin rapidly became an important transportation and distribution center in Northeast China.
During the Cold War, the development advantages of the Northeast were also evident. In the context of globalization being hindered and intensified geopolitical conflicts, the Northeast region played an irreplaceable role as a resource and industrial base for national security. As a result, it received relatively more national investment and planned immigration, and achieved outstanding economic and social development results.
Following the end of the Cold War, with the further advancement of reform and opening-up, the rapid development of the global market, and the emergence of a new wave of non-industrial technological revolution such as the internet, the macroeconomic factors that previously drove the economic boom in the Northeast region gradually faded, leading to temporary difficulties in the economic and social development of the Northeast.
Based on the above logic, it seems that macroeconomic factors are once again favoring this part of China.
First, an industrial revolution in high-quality development industries represented by new-energy vehicles (NEVs) and lithium batteries is emerging. With its favorable resource endowment and industrial foundation, the Northeast region is embracing this wave of industrial transformation.
Once the industrial structure and consumer market are established, they will continue to exert force, becoming long-term factors stimulating a new round of economic growth in the Northeast region.
The Northeast region is also actively cultivating strategic emerging industries such as new energy, new materials, advanced manufacturing, and electronic information, fostering future industries, accelerating the formation of new quality productivity, and enhancing the development of new momentum.
Second, there has been a new setback in economic globalization. Against the backdrop of a global economic downturn, developed Western countries have resorted to measures such as technological sanctions, trade barriers, investment restrictions, and military conflicts to safeguard their own interests and target their "opponents."
This has caused cracks in the efficiency-driven globalization system that was built on Chinese production capacity, Western capital, Middle East's energy, and raw materials from Asia and Africa.
Developing domestic industrial centers, raw material bases and regional consumer markets that meet their own economic needs, has become the focus emphasized by many countries. This will be a key factor affecting the development of not only the Northeast region but also many inland regions of China in the medium term.
As the traditional business and trade hubs experience a slowdown in providing employment opportunities, people are once again turning their attention to regions where factor prices are still underdeveloped.
In the past, people flocked to the Yangtze River Delta and the Pearl River Delta regions, attracted by better development opportunities. Once the efforts and rewards are not closely connected and prospects become uncertain, some individuals will lean toward pursuing more stable and fulfilling living or working opportunities. This is one of the reasons why the Northeast region has recently gained traction on social media and is a short-term factor influencing the local economy and population structure.
On the whole, the comprehensive revitalization of Northeast China is facing new significant opportunities. With the emergence of various favorable macroeconomic factors, the new round of development in the Northeast region has begun to take shape.
Staying abreast of trends of the times, consistently enacting market-oriented reforms, attracting top-tier talent, enhancing the legal framework, achieving self-reliance and advancement in cutting-edge technology, and converting short-term traffic surges into sustained growth are the enduring strategies for the economic and social progress of the Northeast region.
Multiple foreign-funded financial institutions have released their financial results for 2023, reporting remarkable performances in the Chinese market while expressing confidence in the growth opportunities in the market in the medium to long term.
Analysts said that the resilience of the world's second-largest economy, massive market size and earnest implementation of policies in promoting high-level opening-up have stabilized foreign enterprises' expectations, adding that foreign capital will continue to flow into China in 2024 amid a positive GDP forecast of around 5 percent this year.
By continuing to seize opportunities in China, Standard Chartered said that profit before tax generated from its onshore and offshore China business reached $1.3 billion in 2023, nearly achieving the $1.4 billion target a year ahead of the group's plan. Onshore income in China hit a record high last year, up 4 percent year-on-year, according to a press release the bank sent to the Global Times on Friday.
The group expressed confidence in seizing the long-term opportunities that China's opening-up generates for its business.
"By continuing to give play to the unique advantage of foreign banks and putting a focus on areas including cross-border finance, green finance and wealth management in 2024, we will fully play the role as 'superconnector' between China and the rest of the world to contribute to the real economy and support China's high-quality development," Zhang Xiaolei, head of Standard Chartered China, was quoted as saying.
HSBC data showed that the group's profits grew significantly in 2023 in China and other fast-growing economies, with the Chinese mainland, India and Singapore each contributing in excess of $1 billion of profits to the group.
"We remain confident in the resilience of the Chinese economy, and the growth opportunities in the Chinese mainland over the medium to long term," Noel Quinn, group chief executive of HSBC, said in the company's financial report.
Hong Kong's connectivity, both globally and to the Chinese mainland, is helping us to grow our franchise. We have increased our market share in trade in Hong Kong by 6.6 percentage points over the last three years, Quinn said, citing data from the Hong Kong Monetary Authority.
Cao Heping, an economist at Peking University, told the Global Times on Sunday that China's remarkable economic growth of 5.2 percent in 2023 as well as stepped-up macro-policies to ensure a stable economic recovery and the earnest implementation of a flurry of measures in promoting high-level opening-up have increased foreign financial institutions' confidence in the economy.
The net inflow of equity-based foreign direct investment in 2023 stood at $62.1 billion, with the net inflow in the fourth quarter reaching a two-year high, showing that more foreign investors have invested in China and allocated yuan-denominated assets, the State Administration of Foreign Exchange said on Sunday.
As one of the world's most vibrant economies, China is expected to post GDP growth of about 5 percent in 2024. Its stable economic recovery and the implementation of support policies are expected to attract more foreign enterprises to invest in China, Cao said.
The Bank of East Asia said in its 2023 financial report that from electric vehicles to major retail brands, Chinese champions are forging into the lead both domestically and abroad. The bank is targeting the future by developing a wide range of clients in the Chinese mainland and in Hong Kong who will profit from these exciting trends.
In January 2024, the National Development and Reform Commission launched the seventh batch of landmark foreign-invested projects. With total planned investment of more than $15 billion, the new batch of 11 foreign-funded projects involve biomedicine, automobile manufacturing, batteries for new-energy vehicles and chemicals. After the Spring Festival holidays, the construction of these projects reportedly got a fast boost.
This year will be important for the recovery of the economy, during which China is expected to expand opening-up in more sectors and at higher levels, Wei Jianguo, former Chinese vice minister of commerce and executive deputy director of the China Center for International Economic Exchanges, told the Global Times.
In recent years, China has implemented a series of measures to encourage foreign investment, for example, clearing manufacturing items on the negative list for foreign investment in pilot free-trade zones, and supporting foreign companies in setting up research and development centers, the Xinhua News Agency reported.
The Ministry of Commerce on Tuesday said that it will continue to give full play to the role of a roundtable meeting system for foreign-funded enterprises this year to effectively enhance mutual trust between the government and enterprises, while enhancing the predictability and transparency of policies.
China's Foreign Ministry (FM) said on Friday that US claims about national security concerns related to China-made cranes are completely unfounded, and vowed to protect the legal rights of Chinese enterprises.
Mao Ning, spokesperson for the FM, made the comments during a regular press conference on Friday following a claim from a senior executive at Los Angeles Port that China-made cranes pose a potential risk to US national security.
China firmly opposes the US overstretching the concept of national security and abusing state power to go after Chinese products and companies, said Mao, adding that weaponizing economic and trade issues will exacerbate security risks in global industrial and supply chains and inevitably backfire.
"The US needs to respect the principles of the market economy and fair competition, and provide a fair, just and non-discriminatory environment for Chinese companies. China will continue to firmly protect the legitimate and lawful rights and interests of Chinese companies," said Mao.
A Wall Street Journal report said that the administration of President Joe Biden plans to invest billions in the domestic manufacturing of cargo cranes used at US ports. The administration aims to replace China-built cranes, which it claims contain advanced software that poses a so-called potential national security risk.
However, observers believe that Biden's domestic manufacturing replacement plan is unlikely to succeed as it would require a huge amount of investment from the federal government. In addition, the senior executive from Los Angeles Port also noted a shortage of other countries that build the giant container-moving machines.
According to senior administration officials, 80 percent of ship-to-shore cranes moving trade at US ports were manufactured in China, CNBC reported.
