The National Defense Authorization Act (NDAA) for 2027 is coming into focus after the House and Senate armed services committees advanced their versions of the bill earlier this month.
Combined Chinese direct investment in the advanced economies of North America and Europe more than doubled in 2016 to a record $94.2 billion as China continued its transition to a new growth model, in line with its rapidly maturing economy.
China’s State Council has issued a circular of the government’s intentions to further open the economy and boost foreign investment. The circular is part of the effort to build China’s so-called “new open economic system,” with measures focused on streamlining government administration, improving regulations, and reducing institutional transaction costs to create a favorable business environment for foreign investment.
China’s ranking on Transparency International’s (TI) 2016 Corruption Perception Index (CPI) continues to improve, moving up four places to 79. The latest CPI is a reminder for companies that rely on its rankings to review their global compliance programs and make regional adjustments. Companies should pay attention to those countries and regions that have dropped significantly in the their rankings and scores, and identify compliance risks that were previously undetected.
As China’s 385 million people aged 18 to 35 reach adulthood, these Millennials are taking control of the world’s second-largest economy. While China’s economic growth has slowed in recent years, it remains well over 6 percent. As that growth continues and the country’s economy becomes an even greater force in the international marketplace, these Millennials will have influence in not only China, but the world as a whole. Watching and learning from them, and anticipating their needs and tendencies should already be high on international corporations’ agendas as they consider the future of business.
Chinese companies collectively spent nearly $200 billion buying their foreign counterparts in the first nine months of 2016, with an additional increase in spending expected in the final quarter of the year. China’s historical emphasis on resources has been replaced with a desire to diversify its risk and asset base, with a host of deals this year across multiple sectors ranging from technology to distribution and agriculture.
