How will China's next Five-Year Plan affect foreign investment?

SBS World News Radio: China's legislative body, the National People's Congress, is using this month's annual session to outline the country's 13th Five-Year Plan.

How will China's next Five-Year Plan affect foreign investment?How will China's next Five-Year Plan affect foreign investment?

How will China's next Five-Year Plan affect foreign investment?

China's legislative body, the National People's Congress, is using this month's annual session to outline the country's 13th Five-Year Plan.

In light of China's recent economic jitters, all eyes will be on plans for the economy and what it means for local businesses and foreign investment.

One hour's drive north-east of downtown Beijing is a 4,000-square metre greenhouse.

At the moment, it is filled with little more than dirt, but, later this year, the greenhouse will be growing one million plants a month.

They will be all organic, protected from air and ground pollution and adapted to the parched conditions of China's north.

The agricultural technology business is the project of Australian expatriate Nigel Blair.

"The issues of pollution up here are second to none, anywhere else in the world. We've developed a system for growing in the ag area that will actually assist clean product on the ground."

Mr Blair's "E-Agri" operation is just one Australian business trying to make the most of the Chinese government's future direction.

The National People's Congress has begun laying out that future this week at its annual meeting in Beijing.

Both environmental and agricultural reforms are on the agenda, and Mr Blair is watching closely.

"You have to follow the money, and follow where they're expending the money, to understand what they're trying to change."

E-Agri's various greenhouses are based at a facility provided by the government to support businesses developing water-saving agricultural technology.

But innovation is not China's only focus area.

During the Congress session, China is outlining its 13th Five Year Plan.

Front and centre are policies that will reshape the Chinese economy, including getting rid of debt-laden, so-called "zombie," or forgotten, state-owned enterprises.

Xu Sitao is Deloitte China's chief economist.

"For the past many years, the state-owned sector has been a drain on resources."

Xu Sitao says he believes the government will focus on balanced growth, rather than high growth.

And he is predicting less government intervention and regulation, which he says will help stabilise China's recently volatile stock market.

"The sooner for China to embrace a lower, or range of, growth rate would give more leeway for policy responses."

The Chinese internet company Jiuxian says it is also hoping for less bureaucracy.

The company is China's biggest online liquor retailer and does business with 10 different countries, including Australia.

Jiuxian vice president Yang Guofen says a lower tax rate for businesses doing deals internationally will allow them to develop faster.

(Translated)"We can see the government will provide more good policies for its development and that more companies can have more space and freedom to develop on their own."

Australians are being encouraged to watch for opportunities as much as reforms.

The Congress is expected to reveal service and infrastructure gaps, particularly related to the Belt and Road initiative.

The Norton Rose Fulbright head of energy for the Asia-Pacific, Vincent Dwyer, helps facilitate partnerships between Chinese companies and Australian corporates.

He says China's Belt and Road initiative is a prime opportunity for Australian businesses looking to get into emerging markets but they must act quickly.

"This is happening at a fantastic pace. For those who want to be engaged in emerging market strategies, they better get on and do it as fast as they can."

 






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