China’s ‘two sessions’ 2023: outgoing premier vows ‘even greater business opportunities’ for foreign investment

Analysts say that attracting more foreign investment, especially from the US and Europe, could help curb decoupling, but ‘restoring positive business sentiment cannot be done overnight’

Beijing’s highlighting of the CPTPP trade pact and its own Belt and Road Initiative offer hints as to how they could factor into plans to stabilise and bolster China’s economy

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Premier Li Keqiang is seen speaking on a large screen in Beijing on Sunday during the opening session of the National People’s Congress. Photo: AP

Published: 9:00am, 6 Mar 2023Updated: 9:21am, 7 Mar 2023

While acknowledging that external demand will be relatively weak this year, Beijing is sending strong signals that it intends to better integrate into global trade while steadfastly vowing to enhance China’s appeal to foreign investors.

Leadership also still has its sights set on China joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a high-end trade and investment pact, in line with efforts to counter challenges resulting from external containment efforts and geopolitical complications.

In his final work report, delivered during the opening ceremony of the National People’s Congress on Sunday, outgoing Premier Li Keqiang said China will make greater efforts to attract and utilise foreign capital, by expanding market access to foreign investors, especially in the modern service sector.

“We should ensure national treatment for foreign-funded companies … We should improve services for foreign-funded companies and facilitate the launch of landmark foreign-funded projects,” Li said. “With a vast and open market, China is sure to provide even greater business opportunities for foreign companies in China.”

Zhang Zhiwei, chief economist at Pinpoint Asset Management, said the work report sends a strong message that stabilising foreign investment and boosting the confidence of foreign investors will be priorities for the new government this year.