Securing development through less security
In 2024, Chinese officials will work harder to make sure that national security concerns do not undermine the operating environment for companies.
ICYMI: At last year’s Two Sessions, Xi said "security is the bedrock of development.”
- That security-first framing led to increased scrutiny of foreign companies and elevated operating risks.
This year’s Government Work Report sought to rebalance things away from security and back towards development:
- “We should ensure that high-quality development and greater security reinforce each other and do more to pursue development and provide assistance to enterprises on the basis of ensuring security.”
More importantly, Xi Jinping’s public comments were less hawkish than in recent years.
- Instead of playing up “Western containment” like last year or saying that China’s national security is in a “high-risk phase” as in 2021, Xi’s comments this year primarily focused on developing the economy and seizing opportunities.
Get smart: The relatively dovish tone from the Two Sessions is good news for foreign companies.
- Local officials will be less likely to give them grief in the name of national security this year.