The European Union Chamber of Commerce in China: The Independent Voice of European Business in China
Release Of European Business In China Position Paper 2021/2022
On 23rd September, the European Chamber will release its European Business in China Position Paper 2021/2022, the culmination of six months dedicated work by our 35 working groups and sub-working groups. This year’s Executive Position Paper looks into the 14th Five-year Plan (FYP), and identifies areas of risk and opportunity, both for European businesses and for China’s economy.
China’s impressive recovery amid the challenges of the COVID-19 pandemic saw many European firms’ China operations stabilising their headquarters and making up for losses incurred in other markets. A significant number of European Chamber members posted record figures for revenue and profit in 2020, and China’s economy looks set to remain strong for decades to come.
According to International Monetary Fund forecasts, China will contribute more than a fifth of global GDP growth over the next five years, meaning its market is simply too important to neglect.
However, there are worrying signs that China’s economy is turning inwards. The 14FYP sets a clear course for the country to reduce its reliance on the rest of the world, before ultimately achieving a high degree of self-sufficiency. The European Chamber believes that this is a calculated risk. China is gambling that it can successfully attain a higher level of innovation and manufacturing capability in the next decade or so that will allow it to lead in the technologies likely to define the future global economy.
Increasing control over the economy and pursuing a ‘go it alone’ strategy that will see China having to deviate further from the bold reform path it first embarked upon more than 40 years ago could have serious repercussions. These include decreased foreign direct investment (FDI), a deceleration of innovation capacity and reduced access to the core technologies China requires to upgrade its value chains. China’s per capita GDP growth would also suffer, and the risk of it getting stuck in the middle-income trap would increase.
In this climate, there are still abundant opportunities for European companies, but identifying and engaging with them requires an increasingly sophisticated understanding of emerging policies. Join this event to find out more about how your industry fits in with China’s strategic plans, and where your company can contribute to its long-term goals.
The European Chamber is recognised by the European Commission and the Chinese Authorities as the official voice of European business in China. It is recognised as a Foreign Chamber of Commerce with the Ministry of Commerce and China Council for the Promotion of International Trade. The Chamber now has more than 1,700 members.
More details at: https://www.europeanchamber.com.cn/en/upcoming-events/20568
