On March 16, the CCP Central Committee and the State Council released a reform plan for Party and state institutions as part of the annual Two Sessions conference. The plan calls for the creation of a new data regulator, which this article refers to as the National Data Bureau, to consolidate the management of China’s burgeoning data markets.
China Market Intelligence
Following the release of China’s weak second quarter economic data, the government unleashed a slew of measures and statements in support of spurring economic growth, though falling short of issuing a large-scale stimulus package. China continues to face weakening domestic demand, waning private sector confidence, rising youth unemployment, a beleaguered property sector, and mounting local government debt.
China’s second quarter economic data indicates continued weak spots in the country’s economy. While China’s GDP grew by 6.3 percent year on year, it grew only 0.8 percent compared to the previous quarter. The weak Q2 data is compared with an already low baseline due to major COVID lockdowns during this period last year.
On June 29, the State Council released a slew of new measures intending to simplify cross-border business and expand market access within six of China’s 21 free trade zones (FTZs): Beijing, Shanghai, Guangdong, Tianjin, Fujian, and Hainan. The measures come at a time when Chinese leaders are determined to revive both the domestic economy and investor confidence. According to the announcement, the reforms will be implemented by next July.
Bipartisanship is uncommon on Capitol Hill, but policymakers across party lines agree on investing in and regulating artificial intelligence (AI). This wake-up call has been driven, in-part, by a perception that China’s accelerated efforts to both develop its AI capabilities and regulate AI technologies will give the country an advantage in the foundational technologies that the United States and China are racing to lead.
On July 6, US Secretary of the Treasury Janet Yellen traveled to China for a four-day visit, with bilateral meetings taking place over two days. Her visit marked the second cabinet-level trip during the Biden administration, following Secretary of State Antony Blinken’s trip in June. Yellen met with China’s top economic officials, including Premier Li Qiang, Vice Premier He Lifeng, Minister of Finance Liu Kun, and newly appointed People’s Bank of China Party Secretary Pan Gongsheng.
On June 21, the Ministry of Finance, Ministry of Industry and Information Technology (MIIT), and State Taxation Administration (STA) jointly announced that China will extend a purchase tax exemption for new energy vehicles (NEVs) in an effort to boost purchases in China’s massive automotive sector. Chinese regulators are prioritizing policies aimed at boosting vehicle sales, which they hope will send a positive signal about China’s overall economic recovery and increase consumer confidence...
On June 28, China’s top legislature, the National People's Congress (NPC) Standing Committee, adopted the Foreign Relations Law (FRL) after a second reading. Though the law’s provisions are mainly declaratory rather than enforceable, the law’s passage marks an all-encompassing effort from Beijing to streamline the country’s handling of foreign affairs and to further expand its legal toolbox to counter foreign provocations and sanctions.
On May 29, the National People’s Congress (NPC) released its 2023 Legislative Work Plan, which outlines 13 laws to be reviewed by the NPC Standing Committee (NPCSC) during the June, August, and December NPC sessions. Shortly after, the State Council released its 2023 Legislative Work Plan, listing 17 laws and 17 regulations to be drafted and/or revised this year.