Name: China Pushes New Plan to Boost Foreign Investment
Uploaded: 2023-12-12T06:08:18.000Z
Description: China's overseas influence efforts are ramping up through a new trade plan.

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China's overseas influence efforts are ramping up through a new trade plan.

The country's state council is pushing to develop the Shanghai Free-Trade Zone. It would focus on international trade standards and seek to increase cross-border trade.

The announcement first went public on Dec. 8 along with a package of new economic measures, but the question remains: will the rest of the world trust the Chinese regime?

"It's impossible to really reform. Because China holds strict political controls, and they're getting even more strict. [The CCP] prioritizes so-called authoritarian security. As long as this is in place, everything else is meaningless. For foreign companies, the anti-espionage law would basically scare everyone away," Cai Shenkun, a writer and independent commentator, said.

Cai Shenkun is a writer and commentator specializing in China's economy.

He said that the Chinese communist party is granting limited flexibility only to Beijing and Shanghai. Adding that the two are still under the regime's strict control.

Some say Beijing envisions Shanghai as the next Hong Kong. The city used to be a significant hub for Asia's finance and economy.

But investors have been pulling out of Hong Kong, ever since the CCP tightened its political control of the region.

The CCP imposed a national security law in Hong Kong three years ago. The rule gives the party greater power to control the city—far more than under the previous system.

Because of the new law—authorities can now easily target foreign firms—often citing vague reasons like national security concerns.

Former President Donald Trump ended Washington's special trade status for Hong Kong in 2020. Mr. Biden has also warned American companies to re-consider investing or operating in the region.

The European and U.S. chambers of commerce report that 25 and 40 percent of their companies, respectively, are leaving Hong Kong.

To combat it, Beijing is working to align Shanghai's trade zone with international standards.

Liang Shaohua, a former lawyer in China says to achieve that "the Chinese Communist Party would need to withdraw from Shanghai, establish an elected government, and have experts lead economic policies. This is not achievable."

Liang Shaohua was a lawyer in China. He now lives in Canada.

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