China is focused on kickstarting economic recovery and releasing pent-up domestic consumption demand. This was a key takeaway from one of China’s most important annual events – the National People’s Congress and the Chinese People’s Political Consultative Conference, known locally as “Liang Hui” or “Two Sessions,” which took place in Beijing earlier this month.
In our comprehensive report on the Two Sessions, FGS Global’s teams in China and across our network share their considerations for international investors and companies in navigating the way forward:
- Economic growth is THE priority. Above all else China is seeking a stable and sustainable economy to achieve its broader development goals. But growth can only be achieved with a confident private sector, highlighting a critical role for multinational corporations (MNCs) in both supporting China’s economic agenda and telling a more nuanced and realistic China story amid growing global tensions. This requires carefully managing associated risks and addressing the shared and different interests of stakeholders in China and at home.
- Policy volatility is still a possibility, especially as the party expands and the state retreats. Major government restructuring and appointment of senior leaders with less experience than previous cohorts means the machinery of government will take time to get going. MNCs should fully use this transition period for continued engagement with stakeholders while closely monitoring how government restructuring will take shape—and how emerging policy details will impact the regulatory environment, business strategy and stakeholder landscape.
- A Premier with influence? Observers are divided if new Premier Li Qiang is just a “yes” man or if his relationship with Xi Jinping gives him space to push back and have a stronger voice in the economy, one which advances the private sector. We may have more clarity in the coming weeks, with much-anticipated events like the China Development Forum and Bo’ao Forum for Asia offering an opportunity for Li and China’s leaders to engage with visiting global CEOs.
Find the full analysis here.