By the end of the year, China will open new sectors of the economy to foreign investors, investments in which are currently prohibited or limited for companies without special permission. Zhao Leji, Chairman of the Standing Committee of the National People’s Congress of China, announced a new way to raise funds without specifying which sectors this promise concerns, Reuters reports.
According to him, Beijing expects to make the country a driving force for the recovery of the global economy this year, and intends to ensure its own growth through technological innovation. The politician predicted that over the next five years, the volume of imports and exports in China will exceed $32 trillion.
Such statements were made against the backdrop of a long-term decline in the stock market and the continued withdrawal of funds from the country by foreign funds. In the first two months of this year, foreign direct investment into China fell by almost 20 percent.
Despite GDP growth of 5.2 percent in 2023, deflation reached a record 0.8 percent since 2009 in January, indicating continued weak consumer demand.
Earlier it was reported that weak company reports nullified the entire March growth of the Chinese stock market. On Wednesday, March 27, the main Chinese CSI 300 index fell to February levels, and in just one day, investors sold almost a billion dollars in mainland Chinese shares.
Chinese President Xi Jinping also tried to persuade foreign companies not to reduce their investments in China. As part of the China Development Forum, he met with the heads of 20 major US corporations and business partnership councils. The negotiations lasted about an hour and a half.
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2024-03-31 21:34:31