EuCham expects Chinese stimulus measures to benefit domestic and foreign companies

"If you are a foreign company, you can open factories here and adopt the 'In China, For China' strategy, not just focusing on exports. The same applies to Chinese companies, which can establish facilities in Europe for the European market," Klaus Zenkel, Vice President of the European Chamber of Commerce in China (EuCham) and Chair of its South China Chapter, told GDToday in an exclusive interview.

Following the conclusion of the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) in Beijing, Mr. Zenkel shared his insights on how the meeting's outcomes will impact businesses within the Greater Bay Area (GBA)."

EuCham expects a boost for domestic and foreign enterprises

"We can see that there is some more effort by the Chinese government to make sure that they have more growth in the future by opening up markets across all industries, ensuring equal treatment for both foreign and domestic enterprises," Zenkel expressed optimism about the Chinese government's renewed efforts to stimulate economic growth through market opening, increased reforms, and modernization.

According to Zenkel, the EuCham looks forward to actions based on the new discussions and policies emanating from the plenary session, emphasizing the importance of high-quality development for economic growth.

"We would like to understand how the Chinese government is going to stimulate the economy and promote consumption, which will benefit both domestic and foreign companies," Zenkel remarked.

He expects future actions by local governments and anticipates that each city will develop its own plan to provide platforms and create more opportunities for everyone, particularly in new technologies, to ensure equal participation.

Facilitating foreigners' lives to attract business to GBA

Zenkel highlighted the attraction of South China to foreign enterprises and underscored the region's special characteristics and strong appeal to foreign investors. He emphasized the potential of integrating various cities in the Greater Bay Area, with the prospect of central government reforms and increased openness offering significant benefits for all stakeholders.

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization also mentioned improving relevant measures to make it more convenient for people from outside the mainland to live, receive medical services, and make payments on the mainland.

In Zenkel's view, simplifying procedures for foreigners living in China will make the GBA more attractive to businesses. "Foreigners want an environment where they don't have to worry about supporting services such as health insurance, payments, or opening bank accounts. These things should be made easier."

He welcomed the current visa-free entry policy for 12 EU countries and expressed hope that it would expand to cover all European nations. "When foreigners come to China, many are surprised by how modern and easy it is to navigate. This, along with the increasing number of delegations visiting, especially to Shenzhen, shows that South China is an attractive location for foreign enterprises," Zenkel said.

The integration of diverse cities within the GBA, each with its unique characteristics, creates a strong appeal for foreign investors, according to Zenkel. He also noted the importance of coordination and alignment of regulations between Shenzhen, Hong Kong, and Macao to further open up the GBA.

"With new reforms, modernization, and high-quality development, if the central government grants more freedom for opening up the GBA, it will bring significant benefits to everyone," said Zenkel.

(cnbayarea.org.cn & GDToday)