China announces new measures to attract foreign investment in 2017
The China Economic Quarterly is a market outlook prepared on a quarterly basis by PwC to share the latest economic and policy updates. In this fourth quarter update, the overview of China’s macro trends are followed by a summary of the main policy developments and hot topics of interest such as what China plans to do in 2017 and what’s next for the Renminbi.
Major economic indicators
- China’s GDP in the fourth quarter of 2016 increased by 6.8%, resulting in the overall GDP growth of 6.7% for the whole year over 2015.
- Fixed asset investment remained a key driver for China’s economic growth, growing 8.1% over last year and accounting for 80% of GDP.
- Massive money supply has exerted great pressure on RMB’s exchange rate, which fell from RMB 6.55 per dollar at the beginning of the year to RMB 6.92 per dollar at the end of 2016.
- China’s manufacturing purchasing managers index (PMI) experienced the highest performance since 2012 in the fourth quarter of 2016, thanks to booming domestic demand, rising prices and growing activities in high-end manufacturing.
- China’s State Council announced on 17 January 2017 an unprecedented set of new measures to attract foreign investment. These measures aim to lower market entry restrictions on foreign investment in several sectors including banking, insurance, futures and others.
- China has issued its 13th Five-Year Plan (2016-2020) to strengthen the protection and utilisation of intellectual property rights (IPRs). The plan laid out 7 major tasks for the development of IPRs, such as improving the legal system and protection for IPRs, promoting industrial upgrading and international cooperation.