Why the eyes of global business leaders will be on Beijing this weekFollow @PwC
As the leaders of the Communist party in China gather this week in Beijing for the 19th National Party Congress, business leaders around the world will be focused on President Xi and his colleagues, watching and waiting for any indication of the future direction for the Chinese economy and the climate for investment.
In a world of rapid change, political shocks and fluctuating economies, many have come to view China as a steady ship and a reliable engine for economic growth. While the Congress is not known for setting out detailed policy announcements, there is an expectation that President Xi will, when he addresses the meeting, set out his agenda for the next five years and cement some of the key policies and reforms that he has put in place since becoming leader of China in 2012. Policies that have fostered an environment that has allowed businesses to grow and thrive As China forms its political leadership for the next five years, the key questions on the minds of business leaders around the world will be:
- Will China remain committed to opening its markets and economic reform?
- What are the possible future policies on investment both by foreign companies in China and outbound investment by Chinese companies?
- What direction will future Chinese monetary policy take?
- And what policies will be put in place to boost infrastructure, urbanisation and sustainable development - in particular the Belt and Road initiative.
How many of these questions will be answered by the end of the session remains to be seen. But as we prepare to listen to President Xi’s thoughts on the future direction of China, I would encourage you to take a look at our thoughts on:
- The current state of the Chinese economy in our latest China Economic Quarterly
- What investors would like to see come out of the 19th National Congress of the Communist Party of China
- And our view on the progress of the Belt and Road Initiative in “Paving the New Silk Road”.
The other big question for business is what future role China will play in world affairs and in particular on trade, given the more domestic focus of the Trump administration. While we may not learn much detail this month, based on previous speeches by President Xi the expectation is that China will remain very positive on the benefits of global trade.
While this month the world will be looking at Beijing, next month the world’s gaze will turn to Vietnam where heads of state from the Pacific region, including both President Xi and President Trump will gather to attend the annual meeting of Asia-Pacific Economic Cooperation (APEC) leaders and give us their views on regional and world trade. It’s going to be an interesting couple of weeks.
For PwC’s views on the upcoming APEC meeting please take a look here.
Richard Oldfield leads all market-facing activities, initiatives, and strategy. Prior to his current role, Richard was a member of the UK Executive Board for five years during which he was Head of Clients and Markets and latterly Head of Strategy and Communications. Richard also led the UK firm’s Banking and Capital Markets Assurance practice and sat on the Assurance Leadership team. Read more