China’s most important annual political meetings, known locally as “Liang Hui” or “Two Sessions” concluded recently. This year’s gathering was held against the backdrop of the 75th anniversary of the People’s Republic of China, a gloomy sentiment around the economy and an increasingly challenging geopolitical environment. There was considerable global attention, with investors hoping for more forceful growth measures and analysts looking for signs of the direction in which China is heading.
Chinese policymakers responded by emphasizing that the priority is to get the economy back on track and to unleash the private sector and “new productive forces” – the latest policy buzzword. China continues its long journey of transition to a more sustainable growth model – reducing reliance on debt-fueled investment in infrastructure and real estate and putting even greater focus on domestic consumption and tech innovation. The government further seeks to elevate emerging industries while invigorating traditional sectors, cultivating “top-notch innovators” and training more skilled workers.
But these and the other key announcements do enough to instill the business and consumer confidence that is so crucially needed to help them meet their economic development plans for 2024 and beyond?
In contrast to last year, when China was emerging from the pandemic era, there is less optimism or certainty about the outlook for the year ahead. That said, the long-term potential of the market remains of huge interest to a wide range of leading multinationals. They should be buoyed by the pledges made to continue efforts to further open up the economy while creating new opportunities, such as the drive to make China’s industries higher-end, smarter and more environmentally friendly.
In our comprehensive report on the “Two Sessions”, the FGS Global teams in China and across our global network evaluate the key takeaways for multinationals and highlight potential opportunities and engagement approaches.
To inquire about receiving a copy of the report please email: Claudia.kosser@fgsglobal.com
