China is charting a course for foreign-invested businesses operating in the country to weather tariff pressures, with expanded trade partnerships, stronger domestic demand and industrial upgrading highlighted as keys to stability by officials and executives commenting on the sidelines of the ongoing "two sessions."
The "two sessions" are the annual meetings of China's supreme organ of state power, the National People's Congress (NPC), and its top political advisory body, the National Committee of the Chinese People's Political Consultative Conference (CPPCC). Both bodies serve five-year terms and hold a plenary session each year.
The fourth session of the 14th NPC and the fourth session of the 14th National Committee of the CPPCC kicked off in Beijing on March 5 and March 4, respectively.
Against this backdrop, global businesses have been grappling with the impact of the United States' unpredictable tariff policy, a challenge that executives say often lies more in uncertainty than in the duties themselves.
"For companies that operate across borders, the uncertainty is often more of a challenge than the tariffs themselves,” said Vaughn Barber, chairman of the China-Australia Chamber of Commerce.
"By being local in China, we obviously are working very hard that we can avoid, hopefully, tariffs going forward. But again, this is only partially true because at the end of the day, it's a global product and certain things simply come from the US, as the aviation industry is a global industry. So to a certain point, there's an element where you cannot really de-risk for, where you can just only work on the fact that the success of aviation is that it is a global industry, and we're asking everybody to recognize that," said Erik Buschmann, Global Senior Vice President of Airbus, and chief operating officer of Airbus China.
Speaking on the sidelines of the NPC session, Commerce Minister Wang Wentao said one key to stabilizing foreign trade is expanding partners, noting that China has 160 major trade partners, of which 51.9 percent are Belt and Road countries.
Wang highlighted the importance of boosting domestic demand, pointing to key areas such as transportation, housekeeping and travel. He also stressed the need to sharpen global competitiveness through technological innovation and industrial upgrading, a message that drew broad recognition from both Chinese and foreign companies
"We see the emphasis on strengthening of demand and consumption, stable economy, technological and industrial upgrading, opening up in services and innovation sectors. Those are all positive messages for business and Australian companies are definitely focused on those," said Barber.
"In terms of high-quality development, we can make technological breakthroughs that will enhance traditional medicine, if we upgrade our resources and technology in this field. China will surely usher in a better spring," said Ruan Hongxian, chairman of the Yixintang Pharmaceutical Group, a large retail chain company based in Kunming, southwest China's Yunnan Province.
China charts course for foreign businesses to weather tariff pressures: executives
China charts course for foreign businesses to weather tariff pressures: executives
