China Pledges to Expand Market Access, Boost Imports

Chinese Premier Li Qiang pledged to expand market access and boost imports as part of efforts to stimulate economic growth and maintain openness in China. Key points from his speech and related developments include:

• Market Access and Import Expansion: Li stated China would continue to promote openness with inclusiveness and benefit-sharing and actively expand imports. This pledge comes at a time when the Chinese economy has been experiencing a slowdown, and imports have declined for several consecutive months.
• Protection of Foreign Investors’ Rights: Li also assured China would protect the rights and interests of foreign investors in accordance with the law. This assurance follows concerns about foreign investment into China turning negative for the first time since records began in 1998. The declining foreign direct investment (FDI) reflects factors such as strained international relations, increased attractiveness of keeping funds overseas, and differing interest rate policies between China and advanced economies.
• Economic Recovery and Foreign Investment: China has been actively seeking to attract more foreign investors to aid its economic recovery. While advanced economies have been raising interest rates, China has been lowering them to stimulate its economy.
• Positive Developments with Australia: Australian Prime Minister Anthony Albanese, attending the expo, expressed a desire to work constructively with China, emphasizing the importance of dialogue and cooperation. He highlighted recent positive steps in trade relations between Australia and China, including the removal of trade restrictions on Australian products like barley, coal and timber.
• Data Flow and Data Law: Li also pledged China would be more proactive in promoting the orderly and free flow of data in accordance with the law. This commitment is significant in the context of China’s data regulations, which have raised concerns among multinational corporations operating in the country. China has recently proposed relaxing some data flow restrictions to address these concerns and boost economic growth.
• China International Import Expo (CIIE): The CIIE is an annual event aimed at providing foreign exporters with opportunities to increase trade with China. The pandemic has affected attendance in recent years, but the expo remains a key platform for international trade relations.

Bottom line: Li’s speech at the China International Import Expo underscores China’s commitment to openness, boosting imports and protecting foreign investors’ rights amid economic challenges and evolving international dynamics. It also reflects efforts to address concerns related to data regulations and promote trade cooperation with other countries.

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