Xi JinPing's five-year plan and new challenges for European exports

The Beijing Plan outlines the Development goals in line with recent events that have shaken the global economy and will change the geopolitical balance in the years to come. In a context where the Globalization is proving fragile and cutthroat technological competition, Xi JinPing has already given a clear direction to his future policy.

The cornerstone of the Plan concerns “Dual Circulation” through which China will intensify and Will encourage the household economy in the same way, if not more so, Of international trade, especially in some areas. Technological innovation was placed at the center of the discussion: China's manufacturing industry will focus on it to increase product quality and Achieve independence in some areas. 

The discussions on the Plan come at a time of great tension with the United States and during a health crisis that has had a very strong impact on the global supply chain. Therefore, five-year planning will have to be flexible enough to respond to the rapid changes that the whole world is facing. 

One figure that stands out, however, is definitely that of GDP growth of China: it is in fact The world's first major economy to record a positive growth rate, despite the global pandemic. 

European companies already present in China seem to confirm, for now, their confidence in the Asian giant. From 4th Position Paper of the European Chamber of Commerce, which monitored 600 top companies in the financial economic sector in the Chinese market, indeed, it emerges that 88% of firms already operating in the country have no future plans to invest elsewhere nor is considering reshoring, and that 38% of large companies are already planning further investment.  

Different scenario for European SMEs, which suffered a greater setback due to Covid, the excessive quarantine policies and of the travel restrictions still preventing European representations from returning to China, Damaging investor confidence toward the market. 

In this context, it will therefore be necessary for small and medium-sized enterprises to, both those already present and those intending to approach the Chinese market for the first time, develop a real long-term strategy that can take into account all these changes.