The Chinese government in 2015 will open a number of sectors of the economy to foreign investment and will encourage Chinese companies to yield to Western markets. This should facilitate the transition to a new model of economic growth. However, experts believe that as long as the Chinese government did not succeed in stabilizing the economy and improving consumer demand and a slowdown in GDP growth was achieved artificially.
The Chinese government will increase the number of open to foreign investment sectors and simplify rules of accommodation of foreign capital. About this in the report on the third session of the National People’s Congress of the 12th convocation on Thursday announced Premier Li Keqiang.
According to him, the government in 2015 also makes it easier for foreign investors legislative base and expand the list of permitted activities.
The report Premier was a logical continuation of perceived with the arrival of a new round of Xi Jinping China policy to attract foreign capital. So, in the autumn of 2013 in Shanghai for these purposes was created a free trade area, and in 2014 similar zones were opened in the provinces of Guangdong and Fujian, and Tianjin. In addition, under the auspices of the Chinese Government had launched cross-trading on the Shanghai and Hong Kong stock exchanges, as well as successfully launched pilot projects for the establishment of private banks.
All of these measures in 2014 made it possible to attract foreign investment in the amount of $ 119.6 billion.
The active search for investors abroad can indicate problems in the transition to the proclamation of Xi Jinping, the new model of economic growth, experts say. Recall, it implies the decline in GDP growth, while structural reforms to eliminate the uneven development of sectors of the economy and increasing consumer demand in the country.
These measures, backed up by a large-scale campaign against corruption, have been called “the four comprehensive concepts of “Xi Jinping. Chinese state leaders unanimously speak about the imminent put them into practice, but an assistant professor of civilizational development of the East HSE Mikhail Karpov believes that the transition to a new model of economic growth has not happened yet.
«Each new generation of Chinese managers proclaims its model of development of the state. When Deng Xiaoping, we have witnessed “reform and opening”, and under Mao Zedong one of the programs was the “Great Leap Forward Policy”. In fact, it is necessary to look at the actual changes in politics and economics, but they are not particularly noticeable, “- said the expert,” Gazeta.ru “.
According to him, despite the decline in GDP growth to 7.4% and income growth of 9.2% in 2014, the economic slowdown actually organized artificially, but the Chinese themselves do not become more active consumers.
“The government only reduced the amount of cash injections into the economy, which reduced growth rates. However, significant improvement in the macroeconomic situation and to get rid of unprofitable production capacity has not happened. Moreover, due to the economic slowdown and reduced consumer activity in the domestic market, “- said Karpov.
unhappy and Chinese business elite, because its representatives receive less public investment and suffer from Xi Jinping launched anti-corruption campaign.
According to the managing partner of the company “Kaderus Capital” Andrei Akopian, the inflow of foreign capital as time allows Chinese companies to survive the decline infused into the economy of public funds. “Foreign investment also allow to deal with the increased cost of production in China through the introduction of advanced technologies. Finally, in the world today is becoming increasingly urgent repatriation trend of production, and China can not allow that. Therefore, they have to be opened to investors was profitable to keep production in China, “- said” Gazeta.ru “Hakobyan.
In 2015, the Chinese government is also planning to increase the effectiveness of fiscal policy, because the projected budget deficit this year, China will be 1.62 trillion yuan, 270 billion yuan more than in the past. In this case the state budget deficit will rise to 170 billion yuan to 1.12 trillion yuan, and the budget deficit regions will increase by 100 billion yuan to 500 billion yuan.
Total State Council introduced the 15 laws and 38 legal acts.
«At the moment, foreign investment should help to stabilize the leadership of China macroeconomic situation and ensure the growth of consumption. But without serious changes of the political system to implement it will be extremely difficult, not to mention was planned in 2013 liberalization of the renminbi and the key interest rate “- sums Karpov.
However, in addition to attracting foreign investment China’s leaders require their companies and the stepping up production facilities abroad, as well as promote their products in foreign markets.
This is particularly true of manufacturers of railway, electricity and telecommunications equipment, and vehicles, aircraft, and consumer electronics.
In 2014, China’s direct investment abroad has already reached $ 102.9 billion, but the Chinese government plans to increase this figure, including by investing in their own high-end design and high technology.
The development of own R & D will allow Chinese companies are relatively easy to win a part of the foreign market, says director Center for Global Studies at Shanghai University Dr. Guo Chang’an.
«The Chinese telecom equipment have been successfully sold worldwide, the other categories are not inferior in quality to Western competitors. In fact, the government expects the companies more active marketing policy. And then they have an important advantage – the ability to offer a lower price, “- summarizes the expert.
For the development of high-tech Chinese authorities continue implementing the triune telecommunications network, the Internet and broadcasting and accelerate the construction of fiber optical broadband access to the Internet. This will lead to an increase in online market in the country and increase the consumption of goods through the Internet.
«Widespread Internet penetration will not only develop their own technology, but also to attract foreign investors. After all, China is a huge market for them more than a billion active users. However, investors will likely be asked to invest in a completely new projects, such as running at full speed the construction of data centers in the north-west of the country. This will save on public injections and will protect Chinese companies from competition in existing areas of activity, such as the production of PCs, smartphones and software, “- said Changkang Guo.
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