Business Review of Premier Li Keqiang's Government Work Report 2017

March 2017

China recently held the 12th National People's Congress in Beijing. Premier Li Keqiang announced a number of key policies and initiatives which sets the country’s economic direction. These changes will have profound implications on the business landscape in 2017 and beyond. As part of the Congress, Chinese Premier Li Keqiang delivered the Government Work Report which provides a review of: 

I.   Government’s achievements in 2016;

II.  Government’s goals and priorities for 2017; and

III. Government’s plans and actions to improve quality and effectiveness of growth.

 

 

Key highlights of the Report

Economic growth rate

  • GDP growth rate for the coming year has been set realistically at “around 6.5%, or higher if possible in practice,” relative to the range of 6.5-7% for 2016.

 

 

View more

Fixed and private investments

  • The government will invest 800 billion yuan in railway construction and 1.8 trillion yuan in highway and waterway projects in 2017 while continuing its massive investments in major state projects.
  • To encourage growth in private investments, the government plans to improve policies as well as public administration and promote Public Private Partnerships.

 

 

View more

Emerging industries and investment hot-spots

  • The government plans to accelerate the R&D and commercialisation of new materials, artificial intelligence, integrated circuits, and bio-pharmacy and 5-G mobile communications.
  • The government has also set aggressive targets for environmental protection and plans to launch extensive ‘Fitness-for-All’ initiatives, creating business opportunities in education, elderly care, healthcare, tourism, e-commerce and creative services.

 

 

View more

Pro-business reforms

  • The government plans to make service industries, manufacturing, and mining more open to FIEs.
  • There are also plans to treat foreign-invested firms (FIEs) the same as domestic firms on applications, standards-setting and government procurement and allowing FIEs to enjoy the same preferential policies under the Made in China 2025 initiative.

 

 

View more

Real estate sector

  • In 2017, the government will establish robust long-term mechanisms to promote steady and sound development of the real estate sector to restrict further investment and “speculative” purchases by residents and investors.

 

 

View more

RMB exchange rate and bad debt

  • To address the rising non-performing loans, Premier Li has pledged to reform the financial regulatory system and work systematically to defuse major potential risks.

 

 

View more

 

 

To find out more about the tasks and targets outlined in the Report and how it will impact businesses operating in China in the coming years, please read the full article.

 

 

Contact us

Frank Lyn
China and Hong Kong Markets Leader
Tel: +[86] (10) 6533 2388
Email

David Wu
PwC China Beijing Senior Partner
Tel: +[86] (10) 6533 2456
Email

Elton Huang
China Central Markets Leader and Shanghai Office Lead Partner
Tel: +[86] (21) 2323 3029
Email

Allan Zhang
PwC China & Hong Kong Chief Economist
Tel: +[86] (10) 6533 7280
Email

Follow us