Explainer | After China’s ‘two sessions’, here are 8 areas in which Beijing will have its work cut out
- From real estate and infrastructure to e-commerce and self-sufficiency, China’s policymakers have a range of hot-button issues on their plate this year
- New government term officially kicked off this month, with institutional, legislative and policy changes that will map out China’s economic path for years to come
In his first press conference as premier on Monday, Li attempted to boost confidence by reiterating policymakers’ commitments to greater market access, pointing to his past work profile in China’s economic powerhouses of Zhejiang and Shanghai.
With the annual “two sessions” parliamentary gathering ending last week, the new government term has kicked off, and changes have been introduced in institutional structure, legislation and policy – all of which look to have far-reaching implications for industries across China.
Real estate
The government has taken measures since last year to improve the balance sheets of property developers and to stimulate property purchases, while regulators also pledged to prevent the “disorderly” expansion of capital in the property sector to promote its stable development.
Real estate investments in January and February continued to fall, but the pace has slowed for the first time since 2021. However, a rapid rebound appears unlikely.
“Whether the current rebound can gain momentum will depend on prospective homebuyers feeling confident enough to tap the huge amount of excess savings they amassed during the pandemic,” a report from investment management company Fidelity International said on March 9.
“Even if homebuyers return en masse, the days of runaway housing booms are unlikely to return,” the report said.