China Makes Policy Adjustments to Revive Economy

In the post-pandemic world, China is making policy adjustments to revive its economy and easing a wide range of social controls, including visas for business people. Beijing is building a new digital economy powered by AI and high-speed broadband, with 2.3 million 5G base stations and download speeds that are double to the United States. 

The Ministry of Public Security will relax the household registration system to help secure supply chains and encourage job creation. It will make a range of government services more accessible in Guangdong-Hong Kong-Macau Greater Bay Area. These changes and more will help promote the free movement of people, vehicles, information and data. 

Moreover, Chinese authorities are set to lower the bar for individuals to obtain an urban hukou (household registration) to enable more skilled rural residents to live and work in cities. Currently, the decades-old rigid distinction between urban and rural dwellers limits the movement of the population. 

The ministry is also looking at making travel to China for overseas business travelers less cumbersome. Business travelers will be able to apply for landing visas and frequent travelers will be able to upgrade their on-arrival visa to a multiple-entry one valid up to three years. This will help domestic firms secure orders, expand in international markets and gain leverage in a new revolution of industry. And foreign nationals will not have to surrender their passports when applying for residence permits in China. 

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In addition, Beijing has extended its economic reach to developing economies.  According to a China Daily report, the Asian giant now exports more to the Global South than to developed markets – doubling exports to ASEAN and tripling exports to Central Asia. China is helping developing nations in infrastructure projects, building broadband, railroads and ports from Africa to South America. 

Furthermore, China plans to step up its economic policy in order to boost domestic demand, increase confidence and defuse risks. Beijing is making the private economy bigger, better and stronger, with plans to restore and expand consumer spending.