According to Reuters, Shanghai officials are attempting to re-establish multinational firms’ trust in the city via discussion and loosening limits on foreign workers’ admittance.
The Shanghai government will focus on holding 20 government-enterprise communication roundtables in June, focusing on key investment countries and key industry sectors. The key regions include the United States, Europe, Japan, Korea, Taiwan, Hong Kong, and Macau, while crucial industry sectors are automobiles, foreign trade, commerce, integrated circuits, and biomedicine.
There have been four online meetings so far.
Chinese state-owned media CCTV reported that Shanghai hosted roundtable discussions on government-enterprise communication on June 6 and 7.
On June 7, local authorities said that foreigners and their families returning to Shanghai for work would no longer be required to provide an official letter of invitation (PU Letter). According to the European Chamber of Commerce, the change removes a major obstacle to returning foreign workers to Shanghai.
According to Joerg Wuttke, President of the European Union Chamber of Commerce in China, the “zeroing out” policy reduces the attractiveness of Shanghai and China.
Wuttke said that the Chinese government is encouraging work and production in Shanghai. But he added, “The world is not going to wait for China to clean this mess.”
Chinese media outlet XiwangZhisheng cites Wang Shouwen, Vice Minister of Commerce. He said at a state council briefing on June 8 that foreign trade was still facing a series of uncertainties. Foreign trade enterprises also deal with production and operations, including the impact of some international and domestic factors.
Therefore, Wang Shouwen said that stability was still facing a lot of pressure.
On May 23, Li Keqiang held a regular meeting of the State Council. He launched a 33-article measure that includes 140 billion yuan (21 billion dollars) of additional tax rebates and 300 billion yuan (45 billion dollars) of railroad construction bonds.
However, the stock market continues to fall. According to Sina Finance, the overall trend of individual stocks was downward, and the profit-making effect was poor.
As of June 9, the Shanghai Composite Index dropped by more than 1%, the Shenzhen Component Index dropped by more than 2%, and the ChiNext Index fell by 3%.
Fitch said the catering industry fell sharply by 15.6% year on year. In addition, epidemic prevention and movement control measures disrupted domestic supply chain order and labor supply. Therefore, the economy in other areas, including industrial production and fixed asset investment activity, has also slowed down significantly.
Reuters reported that Chinese shares faced cumulative foreign outflows of 465 million dollars in the first five months of this year.
According to Reuters, Goldman Sachs, the bank said in the past year that global investors have increasingly sought to shift from China or better manage China-related risks.