Is China Really Open For Business?

Recent months have seen the reopening of China's borders to international traffic after COVID-19 restrictions, visits from high-profile figures in global business and international mergers.

However, some obstacles to movement have remained intact. Multiyear multiple-entry Chinese visas issued before March 2020 remain suspended and visa applications for tourism and medical treatment are not accepted.

The past year saw Chinese automobile sales soar, with China overtaking Germany as the second biggest global automobile exporter in 2022. Within this industry, China's export of electric vehicles (EV) grew by 120% over the course of the year.

China is a major player in the manufacture of batteries for electric vehicles, accounting for ¾ of global production.

In addition, China's solar cell technology industry is experiencing rapid growth, partially as a result of increased EU demand in the wake of Russia's invasion of Ukraine and the United States' passing of the Inflation Reduction Act, which indirectly benefits those involved in producing solar technology.

Despite the seemingly positive development of international outbound business, the Chinese Ministry of Commerce has announced its intention to place certain solar tech on China's export control list.

Less than three months after the announcement, China put two US firms on the unreliable entities list and imposed hefty fines.

China’s Securities Regulatory Commission announced a set of rules in relation to Chinese companies seeking IPOs abroad, effective from 31 March. In addition, domestic IPOs will be registration based instead of approval based. However, it remains to be seen whether these developments will bring about any substantial change to the systems currently in place.

Please note that this podcast is not intended as legal advice and should not be taken as such.