Economic news

Foreign business groups in China wary as new Xi term begins

2022.10.24 06:42



© Reuters. FILE PHOTO: New Politburo Standing Committee members Xi Jinping, Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang and Li Xi arrive to meet the media following the 20th National Congress of the Communist Party of China, at the Great Hall of the Peop

By Josh Horwitz

SHANGHAI (Reuters) – Overseas business groups in China expressed on Monday wariness about President’s Xi Jinping’s newly unveiled leadership team and his stated priorities, with some urging against greater state intervention in the market.

Eric Zheng, president of the American Chamber of Commerce in Shanghai, told Reuters the chamber was “encouraged” by a commitment to deepening reform and opening up expressed in Xi’s speech at a Communist Party Congress that concluded on Sunday.

“However, at a time when China’s economy faces a challenging environment, we are concerned that the use of non-market tools such as government subsidies to support the state sector could be counterproductive,” he said.

Xi secured a precedent-breaking third leadership term on Sunday and introduced a new Politburo Standing Committee stacked with loyalists, triggering a sharp slump in mainland and Hong Kong stocks as investors sold on fears that economic growth would be sacrificed for ideology-driven policies.

The European Union Chamber of Commerce in China said in a statement it was taking a “wait-and-see” approach to the impact of the Congress as major policy announcements would likely not surface until March 2023, when the party convenes for annual meetings known as the “two sessions.”

While the European business group was positive on remarks Xi made on environmental protection, it said it wanted more clarity on how China planned to remain committed to reform and opening up but also how it would “stay independent and self-reliant”.

“It is not clear how these two statements can be reconciled in practice,” it said.

Steve Lynch, managing director of the British Chamber of Commerce in China, said that while the remarks at the congress pointed to some continuity with the past, the chamber had seen “considerable shifts” in certain policies, and it had to wait to see how they would be implemented.

Overseas businesses in China have grown increasingly critical of policies such as a tough zero-tolerance stance on COVID-19, which they say is discouraging investment and preventing them from attracting foreign staff.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 75,915.34 0.99%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,903.78 2.91%
tether
Tether (USDT) $ 1.00 0.07%
solana
Solana (SOL) $ 199.70 5.56%
bnb
BNB (BNB) $ 595.61 0.16%
usd-coin
USDC (USDC) $ 1.00 0.01%
xrp
XRP (XRP) $ 0.548894 1.18%
dogecoin
Dogecoin (DOGE) $ 0.197384 2.17%
staked-ether
Lido Staked Ether (STETH) $ 2,901.97 2.92%
cardano
Cardano (ADA) $ 0.42657 15.32%
tron
TRON (TRX) $ 0.161109 0.11%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,445.42 3.65%
the-open-network
Toncoin (TON) $ 4.86 0.29%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 0.65%
avalanche-2
Avalanche (AVAX) $ 27.48 1.44%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,932.34 1.16%
weth
WETH (WETH) $ 2,907.72 3.11%
chainlink
Chainlink (LINK) $ 12.77 3.25%
bitcoin-cash
Bitcoin Cash (BCH) $ 371.41 1.53%
sui
Sui (SUI) $ 2.30 2.00%
polkadot
Polkadot (DOT) $ 4.27 3.90%
leo-token
LEO Token (LEO) $ 6.34 3.06%
usds
USDS (USDS) $ 0.994767 0.66%
litecoin
Litecoin (LTC) $ 70.99 0.18%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,053.72 2.83%
uniswap
Uniswap (UNI) $ 8.73 2.51%
near
NEAR Protocol (NEAR) $ 4.18 0.26%
aptos
Aptos (APT) $ 9.61 0.17%
pepe
Pepe (PEPE) $ 0.000011 3.10%
bittensor
Bittensor (TAO) $ 500.29 3.19%
internet-computer
Internet Computer (ICP) $ 7.71 1.73%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.40 0.87%
dai
Dai (DAI) $ 1.00 0.01%
monero
Monero (XMR) $ 164.44 0.83%
stellar
Stellar (XLM) $ 0.101101 3.10%
ethereum-classic
Ethereum Classic (ETC) $ 20.13 0.13%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.12%
whitebit
WhiteBIT Coin (WBT) $ 19.58 1.36%
kaspa
Kaspa (KAS) $ 0.112481 5.56%
aave
Aave (AAVE) $ 180.25 2.53%
crypto-com-chain
Cronos (CRO) $ 0.099389 15.44%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.343148 0.31%
blockstack
Stacks (STX) $ 1.63 2.61%
okb
OKB (OKB) $ 40.20 0.28%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.03%
dogwifcoin
dogwifhat (WIF) $ 2.32 1.19%
arbitrum
Arbitrum (ARB) $ 0.569107 0.36%
filecoin
Filecoin (FIL) $ 3.71 0.73%
mantle
Mantle (MNT) $ 0.653016 3.26%