Highlights: China: Prime Minister intends to lift barriers for foreign investors. In China, in a speech delivered this Sunday March 24 to the business community, Chinese Prime Minister Li Qiang said he was ready to support foreign Investors. This is a response to concerns expressed in recent weeks by foreign companies in China. China is closely watching everything related to market access for these companies, public tenders as well as cross-border data flows. The head of the Chinese State Council particularly highlighted the potential for stimulating consumption linked to the country's urbanization.

In China, in a speech delivered this Sunday March 24 to the business community, Chinese Prime Minister Li Qiang said he was ready to lift barriers and support foreign investors.…

China: Prime Minister intends to lift barriers for foreign investors

In China, in a speech delivered this Sunday March 24 to the business community, Chinese Prime Minister Li Qiang said he was ready to lift barriers and support foreign investors. By what means ?

Chinese Premier Li Qiang said he was ready to lift barriers and support foreign investors. REUTERS - Florence Lo

By: Stéphane Lagarde Follow

From our correspondent in Beijing,

This is a response

to concerns

expressed in recent weeks by foreign companies in

China.

In front of the guests of the Chinese Development Forum, Li Qiang first engaged in an exercise of transparency, recognizing the debt problems of certain local governments, the weakness of domestic demand and the impact of the real estate crisis.

Urbanization and reduction of prohibited sectors

A way of trying to restore confidence which has deteriorated with foreign investors. Li Qiang affirmed that Beijing was willing to put in place new rules to eliminate obstacles to the establishment and especially to the development of these companies faced with the politicization of business and new rules, particularly in terms of cybersecurity, which are sometimes difficult. to be interpreted by decision-makers. China is closely watching everything related to market access for these companies, public tenders as well as cross-border data flows.

Also answer on the weakness of Chinese demand. The head of the Chinese State Council particularly highlighted the potential for stimulating consumption linked to the country's urbanization. Certainly, hundreds of millions of Chinese have left the countryside for megacities, but their residence is still in rural areas. The relaxations in terms of Hukou – the residence permit – or purchases

of real estate

could create a breath of fresh air for groups specializing in housing, education and health. The various measures to take back

vehicles and household appliances

could also encourage households to spend.

In an action plan, the Council of State will reduce the list of sectors in which the activities of foreign investors are restricted or prohibited, notes AFP. China will also expand institutions' access to the banking and insurance sectors and increase the scope of their participation in the domestic bond market.

Finally, the last argument developed by the Chinese Prime Minister, that of low prices in China and the low debt rate of the central government, “

which leaves,

he says,

room to intensify macroeconomic policies

”. A recovery policy encouraged by businesses since the reopening of post-covid borders, but which the Chinese authorities have so far refused.

Last clarification, foreign investments in China fell by 8% last year and again by 11.7% in January.

China: Prime Minister intends to lift barriers for foreign investors

China: Prime Minister intends to lift barriers for foreign investors

Urbanization and reduction of prohibited sectors

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