Two Sessions Government Work Report Investment Focus

INTRODUCTION

The Two Sessions refer to the two annual meetings held by the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC). The CPPCC is an organization which consists of delegates from eight legally permitted political parties, other organizations, and independent members. It consists out of over 2.000 members and serves as an advisory body to the NPC, China’s top legislative body.

These two plenary sessions are China’s most important annual political meetings. During the two sessions China’s Prime Minister delivers of the Work Report, which consists out the government’s agenda and policy priorities for the upcoming year. The Two Sessions are normally held in March, but this year took place in May due to COVID-19.

On 13 June China’s State Council published the division of tasks out of the Government Work Report (GWR). The GWR provides a clear overview for the government tasks to be executed. In the field of investment, the following responsibilities have been defined:

ACCELERATION OF IMPLEMENTATION OF REGIONAL DEVELOPMENT POLICIES

Main focal points include:

• Continue to promote the development of the western region, the overall revitalization of the northeastern region, the rise of the central region, and the eastern region to take the lead in development.
• Further promote the coordinated development of Beijing, Tianjin and Hebei, the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, and the integrated development of the Yangtze River Delta.
• The Yangtze River Economic Belt will be promoted for greater protection.
• Compilation of the outline of the Yellow River Basin ecological protection and high-quality development planning.
• Promotion of the construction of the twin-city economic circle in Chengdu and Chongqing.

FOREIGN CAPITAL INVESTMENTS

Main focal points include:

• Substantial reduction of the negative list of foreign investment access, to be completed by the end of June.
• Introduction of a negative list of cross-border service trade, to be completed by the end of December.
• Deepening of the reform and opening up of Special Economic Zones, to be continued to advance during this year.
• Providing the Pilot Free Trade Zones with greater autonomy for reform and opening up, to continue to push forward during this year.
• Establishment of Pilot Free Trade Zones and the Comprehensive Bonded Zones in the central and western regions, and expansion of the service the service industry to open up comprehensive pilot projects, to be completed by the end of December.
• Accelerate the construction of Hainan Free Trade Port, to continue to promote during this year.
• Create a market environment for domestic and foreign enterprises to be treated equally and fairly, to be continued to be promoted during the year.

AUTHOR

Professor Dr. van Ostende is a regional expert for China investment and trade with many publications to his credit. He presently lives and works in China. His areas of interest revolve around International Business in emerging Asian markets, with a focus on the fields of Foreign Direct Investment, Foreign Market Entry and Strategic Decision Making. Dr. van Ostende has held multiple senior financial management positions of foreign invested companies of European origin with Asian headquarters located in China. Responsibilities include Corporate Finance, Controlling, Administration, Human Resources & Recruitment, IT and Legal. From these support functions Dr. Van Ostende has been continuously contributing towards corporate (re)structuring, ensuring compliance and data-driven enhancement of efficiency and effectivity in business processes. He has been a Guest Professor at Nanjing Normal University in China as well as a course developer and lecturer at NTI University of Applied Sciences in the Netherlands. Dr. Van Ostende’s expertise in the field of Foreign Investment into China has been widely acknowledged. He is named Honorary Ambassador for Investment Promotion of Nanjing Gulou District Government and Honorary Strategic Partner for Investment promotion of Nanjing Jianye District Government. Professor van Ostende is a recipient of China’s Jiangsu Province Youth Friendship Award.

SOURCE

• State Council of the People’s Republic of China. (2020). Notice on the implementation of the "Government Work Report", Opinions on division of labor in key work departments, (GuoFa [2020] No. 6).

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