Reforms mapped out in a resolution of the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) lay out a path for China to become a developed country by building on recent policies that have opened the economy to foreign capital, according to Grow Investment's chief economist Hong Hao.
The 20th CPC Central Committee adopted the resolution on further deepening reform comprehensively to advance Chinese modernization at its third plenary session held in Beijing from Monday to Thursday, drawing up a sweeping blueprint that will guide China's reform and opening-up for years to come.
Offering the first glimpse of what nearly 400 officials discussed behind closed doors during the four-day meeting, it outlined the country's aim to build into a "high-level socialist market economy" by 2035.
In his analysis of the readout, Hong underscored the country's transition to an economy centered on innovation.
"I think right now China is going through the process of restructuring its growth engine. So in the past twenty years, it has been exports and also it has been the domestic property market that have been driving Chinese growth. I think going forward, there's a new term that is being mentioned many times in the recent communique (resolution), which is the new [quality] productive forces. So we are hoping in the next stage of growth, we're trying to use technological advancement and other forms of new technology to help China go into a medium-level developed country," said the chief economist.
Financial reform is one of the main focuses of the document, which calls for tax cuts and deepening institutional reform in finance and fiscal policy.
In Hong's view, these reforms will likely be key to enticing more foreign capital into the country's financial sector.
"Since a couple of years ago, we've been allowing foreign capital to increase its stake in many of the financial industries in China, for example, insurance, mutual fund companies. So right now the foreign capital can own a majority at stake in many of these companies. I think going forward, there's also a reform of how the mutual fund industry is being regulated, how financial professionals have been compensated in the financial industry and also how best to use the financial instruments as the instrument to propel Chinese growth," said Hong.
More reforms to unlock "hidden productive forces" of China’s economy: investment economist
More reforms to unlock "hidden productive forces" of China’s economy: investment economist
A Swiss air quality services exhibitor at the just-concluded China International Fair for Trade in Services (CIFTIS) highlighted the growing demand for sustainable practices in the services industry.
The five-day trade fair wrapped up on Monday after attracting participants from over 80 countries and regions, with a host of international organizations also taking part in the event which was themed "Global Services, Shared Prosperity."
The green transition has been a prominent theme at this year's CIFTIS. Frank Hammes, global CEO of Swiss air quality technology company IQAir, emphasized at the event that his company is aligning its product development and operations with the green energy movement.
"As a European company, we have a good tradition, I think we are really leading in the green energy field, but as a manufacturer, we're really stunning with the raw materials and so that's quite important. The next thing is how much energy you use during manufacturing? How much energy do you use for the packaging? What types of packaging materials you're using? And ultimately, but that's the most important thing, how long will your product last? Green today means we have to use whatever we're using much more responsibly. So we have many customers in China now that are using our products for over 20 years. And for example, we're still committed to repairing these products, servicing these products. And again, this is an opportunity for the service industry because labor is abundant, but raw materials are very limited," Hammes said.
Noting the significant potential for green technology solutions in the Chinese market, the CEO said IQAir seeks to assist businesses in showcasing their environmental, social, and governance (ESG) initiatives by enhancing transparency about workplace air quality.
"One of the areas that we're working in is helping other companies to show their environmental, social and governance ESG Initiatives. And one of those areas where we can help them is to be more transparent about the air quality that they are giving to their employees at work and able to make sure that they have a healthy, productive working environment. The cognitive ability, the ability to think complex thoughts, is actually reduced. So we help companies be at their best, both from health and from a productivity point of view" he said.
"As a foreign company, you try to use your strength and one of the strengths we have, I think we bring a global perspective. We have so many Chinese companies right now that are interested in expanding globally and I think we're there to help them, to really make sure that they understand if I'm going abroad, I will be looked at in terms of my commitment to my employees, my commitment to the environment. And so we try to help them with that because ultimately an environmental project can only be successful if everyone is part of that," said Hammes.
China initiated a national fair dedicated to promoting trade in services in 2012, which later became known as the CIFTIS. The event has attracted over 900,000 exhibitors and participants from 197 countries and regions since its inception.
Swiss exhibitor at CIFTIS aims to help bolster China's green transition
