Suchergebnisse

A respectful growth is important for China's leaders. Since early 2017, however, the government seems to place more emphasis on structural reforms for sustainable development. Policy deliberations have highlighted the challenges confronting the economy and the need for reforms. Meanwhile, policy adjustments have been made to ensure satisfactory economic outcome, at least up to the 19th Party Congress to ensure a smooth transition for Chinese President Xi in his second term.

Dismal trade performance contributed to China's recent growth deceleration. In 2017, China's trade will likely be impacted by persistent weak external demand, rising trade remedies by importing countries and intense competition from other developing countries. Trade frictions between China and the United States may intensify. To sustain trade development, the Chinese government has modified its policy orientations and is accelerating regional trade talks such as the Free Trade Area of the Asia Pacific and Regional Comprehensive Economic Partnership.

The guideline for the 13th Five-Year Programme (FYP) is an important document, which sets as its top agenda promoting innovative development to sustain China's long-term prosperity. The government also identified key task areas such as reforming state-owned enterprises (SOEs), overhauling China's fiscal arrangement and promoting further economic opening. However, the government's commitment to reform China's zombie SOEs remains doubtful. Moreover, the implementation faces challenges, including ambiguity in guiding principles and bureaucratic inertia.

Sustaining modest growth while promoting reforms and further opening tops Li Keqiang's agenda for 2015. Having gained confidence from the experience of 2014, the government aims to employ more flexible and targeted policy instruments in macroeconomic management. Modifying growth targets downwards, the Li government also aims to push forward reforms in several areas, including administrative streamlining, deregulation and liberalisation of investment financing, and fiscal and taxation reforms.

Being a major recipient and an important source of foreign direct investment (FDI), China shifted its policy focus from attracting FDI inflow to facilitating and protecting outbound FDI. The shift is reflected in China's efforts to negotiate and to upgrade its bilateral investment treaties (BITs), especially the decision to revive the China-US BIT negotiations. This is important as the United States has become a significant designation for China's outbound FDI; numerous challenges however remain.