Photo top left: Ambassador Fei (center); Mr. Latour (right); Ms. Sonck (left)
The Flanders-China Chamber of Commerce organized an exclusive networking luncheon with His Excellency Mr. Fei Shengchao, Ambassador of the People’s Republic of China in Belgium on 10 September 2024 in Brussels.
Following registration and networking, Mr. Philippe Latour, Chairman, Flanders-China Chamber of Commerce, introduced the event and the Ambassador, congratulated the Ambassador on his new posting, and wished him much success. He also took the opportunity to celebrate the 75th anniversary of the founding of the People’s Republic of China. Ambassador Fei graduated with a Master’s degree in Law. Between 1996 and 2012 he was Deputy Director and Director at the Department of Translation and Interpretation at the Chinese Ministry of Foreign Affairs. After that he spent three years as Counsellor at the Chinese Embassy in the Cyprus, followed by two years in Australia. He returned to Beijing as Deputy Director General at the Department of Translation and Interpretation at the Ministry of Foreign Affairs and he was already in Belgium for three years between 2019 and 2021 as he was appointed Minister Counsellor at the Mission of the People’s Republic of China to the EU. Before taking up his new post in Belgium he was the Chinese Ambassador to the Federal Republic of Somalia.
Mr. Latour said that the support of the Ambassador and his colleagues is very important for the development of the activities of our companies in China and Belgium. He also thanked the FCCC's structural partner Flanders Investment & Trade for their support. He added that the luncheon was an excellent opportunity to share the development of the participants' activities in China with the Ambassador.
As you all know, Mr. Latour continued, China is the second-largest economy in the world and cannot be ignored. According to a survey of European companies in China, 60% of the enterprises stated that China remains a top three destination for investment. Almost half of respondents also reported more market openings in their industries, such as the financial services industry, the food and beverage and the cosmetics sector. Many companies are present in China because of its market potential, and local supply chain but more and more for its innovation power. There is still an enormous untapped potential for growth in the Chinese market also taking into account China’s growing middle-class.
On the other hand, companies need a new China playbook as doing business has become more complex. The top three challenges for EU companies based in China are first the slowing down of the Chinese economy; secondly, the global economic slowdown and thirdly, the geopolitical situation. Doing business with China can be challenging but the biggest risk for companies doing business with China is not to be in China. In these difficult times, our Chamber plays an even more important role in acting as a bridge to help Belgian companies grow in China and assist Chinese companies in finding partnerships and developing their business in Flanders, Mr. Latour concluded.
HE Ambassador Fei Shengchao delivered a speech on China's economic perspectives and its foreign investment environment. Following are a few highlights of the Ambassador's speech. The Ambassador said that becoming an upper-middle-income country in 2010, China has followed a path of innovation and high quality development through deepening reform. Two months ago, the “Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization” was adopted at the Third Plenary Session of the 20th CPC Central Committee. In this guiding and strategic document, over 300 reform measures were rolled out, all of which pertain to reforms on institutions, mechanisms, and systems. The more China develops, the more open it becomes. To promote reform and development through opening up is instrumental for China to keep making development achievements. The Third Plenary Session announced reform measures in four major areas:
First, China will steadily expand institutional opening up. Institutional reform is inevitable in high-standard opening up. China will promote alignment with high-standard international economic and trade rules and harmonize rules, regulations, management, and standards relating to property rights protection, industrial subsidies, environmental standards, labor protection, government procurement, e-commerce, the financial sector, and other areas, in an effort to create an institutional environment that is transparent, stable, and predictable. China will open commodity, services, capital, and labor markets wider to the outside world.
Second, China will deepen the foreign trade structural reform. China will better coordinate trade policies with fiscal, tax, financial, and industrial policies and will develop new regulatory approaches for customs clearance, taxation, and foreign exchange, foster an institutional environment that is conducive to the development of new models and forms of trade, and step up reforms to integrate domestic and foreign trade.
Third, China will further reform the management systems for inward and outward investment. It is important to step up efforts to attract and utilize foreign investment. China continues to ease market access for foreign investment and will expand the catalog of encouraged industries for foreign investment, appropriately shorten the negative list for foreign investment, remove all market access restrictions in the manufacturing sector, and promote wider opening with regard to telecommunications, the internet, education, culture, medical services, and other sectors in a well-conceived way.
Fourth, China will optimize the layout for regional opening up. It will consolidate the leading role of eastern coastal areas in opening up, and promote further opening up in the central, western, and northeastern regions. China will implement the strategy for upgrading pilot free trade zones, grant them greater decision making power for reforms, further explore innovative, integrated reform, encourage these zones to engage in pioneering and integrated explorations, and proactively replicate and promote the results of institutional innovation.
In recent years, China has significantly accelerated the pace of high-standard opening up, opened up more sectors, and increased the breadth and depth of opening-up. China has optimized the policy of attracting foreign investment, responded to the legitimate needs of foreign businesses in a timely manner, and introduced concrete measures to improve the business environment and services for foreign investment. Ambassador Fei Shengchao stressed again that China remains committed to an opening up strategy that is mutually beneficial. China’s door to the outside world will only open wider. China’s policy priority of fostering a first-rate business environment that is market-oriented and law-based will not change. Openness brings development and cooperation creates mutual benefit. Since the start of reform and opening up over forty years ago, China has become the world’s second economy and the largest industrial country, and a major trading partner of more than 140 countries and regions. China’s contribution to world economic growth has stayed at around 30%. As China’s economy transforms from a stage of high-speed growth to one of high-quality development, more emphasis has been laid on quality improvement rather than quantitative growth.
In the first half of 2024, despite challenges and the complicated domestic and international environment, China’s GDP grew by 5.0% year-on-year, significantly higher than most major economies. China remains an important engine and stabilizing force for world economic growth. China’s production and demand have been resuming, employment and prices stayed generally stable, and industries showed a clear momentum of transforming to the “new and green”. From January to July, paid in foreign investment reached CNY539.5 billion. Nearly 32,000 new foreign-invested enterprises were established, increasing by 11.4% year-on-year. Both indicated that foreign investors are still optimistic about the long-term investment prospects in China.
Geopolitical tensions have intensified, protectionism has become increasingly popular, globalization has encountered headwinds, and world economic recovery has been sluggish. To tackle these challenges, countries need to work together to pursue mutually beneficial cooperation, rather than engaging in bloc confrontation and erecting “small yards with high fences”.
China and Belgium are at different development stages and enjoy a sound cooperation foundation. Our two countries have great potential in investment and trade cooperation in manufacturing and service sectors. Some of the companies represented today have invested in China since the 1980s and have grown together with the Chinese economy. China’s pursuit of high-standard opening up means that there will be more investment opportunities in more sectors for Belgian and other businesses. The Ambassador expressed the hope the Belgian businesses will seize this historic opportunity, giving full play to their own strengths, expand investment in China, and strike deep roots in the Chinese market. He hopes that they will make good use of platforms such as the China International Import Expo, the Canton Fair, the China International Fair for Trade in Services and the Global Digital Trade Expo, to explore more opportunities of trading with China in goods, in services and in the digital sector. The Chinese Embassy in Belgium will continue to provide necessary support and facilitation.
Flemish business people are known for being wise, pragmatic and proactive with strategic vision and pioneering spirit. China has implemented a visa-free policy for Belgian business people. Direct passenger flights between China and Belgium have increased to 17 flights per week. It has become easier to travel between our two countries. You are most welcome to visit China more often to seek cooperation opportunities. Your suggestions on expanding and deepening China-Belgium relations are also highly valued. The Chinese Embassy in Belgium will take it seriously and handle properly, the Ambassador concluded.
A networking lunch concluded the event.
