Market Entry & Industry Updates
China Economic Outlook 2025
China’s economic outlook for 2025 signals a year of transformation, marked by shifts towards high-tech production, consumption-driven growth, and sustainable development. With GDP expected to grow by at least 5%, government policies are focusing on stimulating domestic demand, stabilizing the property sector, and expanding green energy and healthcare industries. Key initiatives include consumer trade-in programs, fiscal stimulus, and monetary easing. While global trade tensions pose challenges, China’s strategic diversification and policy adaptability position it for resilience. As 2025 unfolds, China remains committed to innovation, high-quality growth, and economic stability.
Promoting High-Quality Development: Interpretation of New Policies for the Financial Leasing Industry in Shanghai’s Lin-gang Special Area
On December 12, 2024, the Lin-gang Special Area of the Shanghai Free Trade Zone introduced new measures to promote high-quality financial leasing development. These policies aim to enhance competitiveness through optimized business environments, financial support, and industry-specific incentives. Key areas of focus include civil aviation, medical equipment, and green leasing, alongside fostering cross-border innovation and talent development. Effective from January 1, 2025, these measures will shape a dynamic financial leasing ecosystem. Companies should leverage these policies, strengthen financial partnerships, and expand internationally to maximize growth opportunities, especially under the Belt and Road Initiative.
New Policies in Development of Western China: Catalogue of Encouraging Industries in Western China (2025 Version)
The Catalogue of Encouraging Industries in Western China (2025 Version) is a policy document that outlines the industries that the Chinese government encourages for investment and development in its western regions. The 2025 version aims to further boost the economic growth in western China by providing attractive incentives for both domestic and foreign investors. The industries listed in this catalogue are considered essential for the region’s modernization and sustainable development. These industries encompass various sectors, including high-tech, clean energy, advanced manufacturing, and ecological protection.
German Companies Deepen Investment in China Amid Strategic Growth in 2024 and 2025
German companies are intensifying their investments in China, signaling strong confidence in the market’s long-term potential. Key sectors like automotive, chemicals, and fashion are leading this growth. Mercedes-Benz and Volkswagen are advancing electric vehicle (EV) innovations tailored for China, while BASF commits €10 billion to a new chemical production facility. Hugo Boss is expanding its retail footprint to capture China’s demand for premium products. With €7.3 billion in Foreign Direct Investment in the first half of 2024, Germany’s “In China, for China” strategy emphasizes localization and sustainability. Despite geopolitical challenges, German firms remain focused on fostering strategic growth and partnerships.
Foreign Direct Investment (FDI) in Guangzhou: A 2024 Overview
Foreign direct investment (FDI) continues to shape Guangzhou’s economic growth, cementing its position as a hub for global enterprises. From record-breaking FDI growth in 2023 to milestones achieved in 2024, Guangzhou remains a strategic destination for investors. Key industries, including advanced manufacturing, electronic information, and services, contribute to its diverse industrial base. As a vital part of the Guangdong-Hong Kong-Macao Greater Bay Area, Guangzhou’s pro-business policies and infrastructure attract top global companies. CW CPA provides tailored solutions to navigate FDI opportunities, ensuring compliance and operational efficiency. Learn more about FDI trends and prospects for 2025 in this comprehensive overview.
Hong Kong Signs Free Trade Agreement with Peru
On 15 November 2024, Hong Kong and Peru signed a landmark Free Trade Agreement (FTA) during the APEC Economic Leaders’ Meeting in Lima. The agreement covers competition, intellectual property, investment, trade in goods and services, and online commerce, among other strategic areas. It grants Hong Kong enterprises access to over 150 Peruvian industries, surpassing WTO commitments. The FTA provides a stable legal framework to boost commerce, fostering opportunities for Hong Kong businesses to expand into Latin America. With bilateral trade growing steadily—merchandise at 4% annually (2019-2023) and services at 16.3% annually (2018-2022)—this partnership solidifies economic ties.
