Third Plenum, UK Chancellor comments on China, and why China loves Taylor Swift

Welcome to China in 5, from the British Chamber of Commerce in China.

Each week, we bring you up to speed with what’s caught our eye in the China-sphere in five(ish) minutes.?Grab a coffee, take a break, and dive in!

Beijing's Strategic Shift: Empowering the Private Sector for Technological Advancement

What's the background? Beijing has pledged to support the private sector with better resources and more opportunities. This commitment was part of a comprehensive 22,000-word resolution document released following the conclusion of the third plenum last week. The document outlines Beijing's strategy to enhance technological innovation and boost the private sector's role in national development.

Fact 1: The Chinese government has emphasized the need for capable private enterprises to lead major national technological research tasks. This includes opening up national scientific research infrastructure to private firms, a move aimed at fostering innovation and technological breakthroughs.

Fact 2: The private sector is a crucial component of China's economy, contributing 50% of tax revenues, more than 60% of GDP, over 70% of technological innovations, and providing more than 80% of urban employment. Despite this, a challenging post-COVID economic recovery and international pressures have dampened confidence among private businesses.

Fact 3: The third plenum supported the formulation of a law to promote the private economy, which is already in the legislative process. Analysts believe that accelerating this legislation could help create a unified and fair national market, thereby bolstering investor confidence and ensuring equal market access for all firms.

"The Chinese government's renewed focus on supporting the private sector and enhancing technological innovation is a step toward creating a more dynamic and competitive economic environment. This commitment is crucial for attracting foreign investment, particularly from companies seeking to collaborate with innovative Chinese firms. However, the international trade and investment community will be closely monitoring the implementation of these policies. BritCham frequently advocates for the release of coherent and consistent implementation plans to the authorities. Additionally, we are keenly observing whether these measures will ease market access and provide a level playing field for foreign companies, addressing two of business biggest concerns.For British companies operating in China, these developments present both opportunities and challenges. On one hand, increased support for private enterprises and technological innovation could lead to new partnerships and investment prospects. On the other hand, the potential for increased regulatory scrutiny and a focus on self-reliance may pose risks to market access and operational stability. Ultimately, fostering a stable and predictable investment climate will be key to sustaining long-term economic growth and maintaining confidence among international investors." – Yiyi Jing , BritCham Government Affairs and Advocacy Manager

UK Chancellor insists Britain benefits from trade with China

What's the background: In one of Reeves’s first interviews since becoming chancellor, Reeves was queried on Labour’s plan to deliver growth for the British economy, with a late question on China prompting her to state that the UK is “a small open trading economy and we benefit from those trade links around the world, both for exports and imports, but also for foreign direct investment.”

Fact 1: Labour’s main mission in government is to grow the British economy, so discussions over the benefit of trade links to China shows an honest assessment of how the relationship supports British businesses and growth.

Fact 2: As part of these plans to deliver growth, it appears as though Rachel Reeves has been meeting with business leaders alongside Prime Minister Keir Starmer and Secretary of State for Business and Trade Jonathan Reynolds.

Fact 3: With the US and EU having recently imposed tariffs on Chinese imports, there have been speculations from the press as to whether the UK will impose any itself, with The Times suggesting that these are unlikely.

With this year’s door knock having coincided with the build up to the general election, it served as an important opportunity to meet the China focused teams in relevant UK government departments, including the Treasury. In each of these, there was a clear focus on growth, with opportunities to discuss the impact of UK-China trade on the British economy. It is positive to see the government looking to engage businesses early on in this Parliament and will hopefully lead to a strong industrial policy which considers some of the complex trade offs needed to secure a strong economy whilst protecting British interests. Harry Bell , BritCham Policy and Advocacy Manager

Coffee break read: China’s robotaxis are racing ahead of Tesla’s

Why we like it: ?Electric vehicles get much of the attention when it comes to discussing China’s burgeoning automotive industry; this article instead shines light on another important development for the sector – driverless cars. Filed from Wuhan, where Baidu’s driverless taxi service has run millions of rides at an astonishingly cheap cost, this report dives deeper into the industry and how Baidu is leaping quickly ahead of the likes of Tesla in this field. Many are thrilled about this development, but some – such as cabbies, who account for 50% of the operating costs of a taxi – are not so happy about the development.

Podcast of the week: Why China loves Taylor Swift

This week, Cindy Yu from The Spectator's Chinese Whispers brings together experts within the music industry to reveal the secret of Taylor's popularity in China. To what extent do melody, rhythm, storytelling, language, and public relations each contribute to the making of a superstar in China? What are the barriers for Western artists entering a Chinese market? Listen to the podcast to understand more about popular music in China.

And finally...

Construction of infrastructure has continually played a significant role in China’s economic development, add that to an enormous population and urban development plans and it comes as no surprise that at times China may have overbuilt. Ghost cities, numbering up to 50 cities, are now dotted across the country becoming a popular escape for photographers and artists. This article provides some of these photographic endeavours and provides ample background into each city as to how and why the city’s construction came to be.

Thanks for reading China in 5! For more information on the British Chamber's work and to check out our advocacy, knowledge, and community offerings, visit our website at britishchamber.cn .