The China Economic Quarterly is a market outlook prepared by PwC China and Hong Kong on a quarterly basis to share the latest economic and policy updates. This issue provides an overview of the macroeconomic trends in Q3 2018, policy insights about private enterprises receiving fair policy treatment as well as an in-depth analysis on the impact of China’s first import expo on its economy.
Here are some highlights of the Q3 updates:
Private enterprises to receive fair policy treatment
Some of the Chinese private companies are facing challenges given the slowdown of the economy. At a symposium on private enterprises at the Great Hall of the People in Beijing on Nov 1 2018, President Xi Jinping and other top leaders reiterated their unswerving support for the development of private enterprises. Some policies, amongst others, were announced as follows: The burden of taxes and fees on the companies should be eased; Measures should be taken to address the difficulty and high cost of financing for private firms; Policy implementation should be improved (this means no unfair treatment towards private companies when implementing government policies and measures); Entrepreneurs’ personal and property safety should be ensured.
China has made a significant improvement in the business climate and the government is still striving to advance it.
According to the World Bank’s annual report Doing Business 2019: Training for Reform, "China advanced to a global ranking of 46 this year, up from 78 last year, as the country implemented the largest number of reforms." More specifically, China ranks:
The China International Import Expo (CIIE) was held in Shanghai on 5 November. This event celebrates the 40th anniversary of China’s reform and opening up, where China actively opens its market to the world. President Xi Jinping said during the opening ceremony of the import expo, that China's imported goods and services are estimated to exceed US $30 trillion and US $10 trillion respectively in the next 15 years.
What is the impact of China’s first import expo on its economy?
As China’s economy is entering into a new phase characterised by domestic demand and consumption-driven model, the growth of imports bodes well for mitigating the principal contradiction facing Chinese society in the new era, which is between the “unbalanced and inadequate development and the people's ever-growing needs for a better life”. Besides, increasing imports are also beneficial for the long-term stable growth of China’s economy.
According to China International Import Expo Bureau, during the event which lasted six days, deals valued about US $57.83 billion were signed for the year ahead. More specifically, the deals signed included:
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