The Chinese authorities continue with their reform plan in various sectors of the country, including politics, economy, culture, society and green, to fulfill the commitments made at the end of the third plenary session of the 20th Central Committee of the Communist Party, held since 15 to July 18th. The objective is to give new impetus to the modernization of the People’s Republic and prevent it from giving way to its adversaries.
At the end of September, a package of macroeconomic measures was presented, focusing on strengthening analytical adjustments, expanding domestic demand, supporting business operations, reinvigorating the capital market and promoting the recovery of the real estate market. These reforms were presented at the end of a quarter during which, according to data from the National Bureau of Statistics, Beijing’s economy acquired a solid base and recorded an increase in GDP of 4.8% compared to the previous year . Several international and foreign institutions, including UBS Investment Bank, Goldman Sachs, the World Bank and the IMF, have also revised upwards their forecasts on China’s growth.
The package presented in September is only the latest in a long series aimed at maintaining the commitments made by the authorities of the People’s Republic in July. Last March, the Beijing government launched a large-scale program to upgrade equipment and trade in consumer goods. According to what was reported by CMG (China Media Group) it would have had positive effects on the economy and the well-being of the population. Recently, the fourth batch of ultra-long-term Treasury special bonds worth 55 billion yuan was issued to support the renovation of equipment such as agricultural machinery, old elevators, color ultrasound and CT machines.
Regarding consumption, the National Bureau of Statistics recorded an increase in retail sales of goods of 3.3% compared to 2023. Nominal growth in per capita disposable income of urban and rural residents increases by 5.2 %. The job market is stable, with an unemployment rate in the cities at 5.1%. This area has also been the subject of measures by the Beijing authorities, with the launch of a policy of subsidies for businesses aimed at encouraging the hiring of recent graduates and candidates aged between 16 and 24. Support has also been provided to the rural workforce, flexible workers and other key groups.
As part of the green transition, the CPC Central Committee and the State Council presented a series of guidelines in August to accelerate it in all sectors. The main objectives would be to achieve “remarkable results” by 2030 and to create a substantially green and low-carbon economic system in 2035. According to the Ministry of Industry and Information Technology, China will strengthen the development and supplies of technological and green low-emission equipment and products, as well as promoting the development of intelligent industries and the strengthening of non-polluting energy sources.
Strategic investments by foreign entities were also affected by the reforms. On Friday, November 1, the government of the People’s Republic published new regulations on the matter, in order to encourage them. Thanks to the new changes, non-Chinese individuals will also be able to invest in companies listed on the stock exchange, while under the old rules such operations were only possible for organizations and legal entities.
Public takeover offers have also been added as a further option for making strategic investments, and the option to use the shares of unlisted foreign companies as consideration shares for the payment of the acquisition in the event of investment has been authorized for foreign entities through the options of private placements or public takeover offers, and the requirements relating to the shareholding ratio and the lock-up period have been reduced.
