What You Need to Know From China’s National People’s Congress

Premier Li Keqiang outlined China's economic priorities, focusing on fiscal support and tax cuts, particularly for the private sector, while avoiding flooding the economy with liquidity. He emphasized targeted measures like reserve ratio cuts for banks. Amidst fragile economic data and ongoing trade tensions with the US, China introduced a new foreign investment law to level the playing field for foreign businesses. However, the business community remains cautious about its implementation and effectiveness in addressing US concerns.

What is the main focus of China's economic strategy as outlined by Premier Li Keqiang?

• Flooding the economy with liquidity

• Providing fiscal support, especially for the private sector

• Reducing government spending

• Increasing interest rates

What is one of the measures included in the announced tax cuts?

• A 3% cut to VAT

• A new import tax

• An increase in corporate tax

• A 5% increase in VAT

What economic indicators are mentioned as showing fragility in China?

• Retail sales and industrial production numbers

• Housing prices and employment rates

• Stock market indices and foreign exchange rates

• Government debt and inflation rates

What is a key feature of the new foreign investment law in China?

• Mandatory joint ventures with Chinese companies

• Restrictions on foreign ownership

• Banning forced technology transfers

• Increased tariffs on foreign goods

What is the response of the American Chamber of Commerce to the new foreign investment law?

• Outright opposition and protest

• Complete support and enthusiasm

• Skepticism and caution

• Indifference and neutrality