This year's eight-day Mid-Autumn Festival and National Day holiday saw the most robust travel season in recent years, with both tourist trips and revenues surpassing pre-pandemic levels. According to Xinhua, China recorded 826 million domestic trips during the holiday, which is a 71.3 percent increase from the previous year and a 4.1 percent increase from 2019, the last pre-pandemic year. The total revenue of the tourism sector during this period increased by 129.5 percent year-on-year, reaching 753.4 billion yuan, reflecting a 1.5 percent growth compared to 2019.

The Economic Intelligence Unit (EIU) reports that China's economy is gradually stabilizing. They predict that service consumption will continue to be the cornerstone of China's consumer recovery, with sectors like education and tourism showing slight month-on-month increases in consumer prices for two consecutive months. In August, China's consumer prices rose by 0.1 percent year-on-year, and 0.3 percent in September. This indicates a recovery in consumer confidence. EIU expects this underlying strength to persist through the rest of 2023, assuming that the economy has already hit its lowest point.

The European Chamber of Commerce publishes the European Business in China Position Paper annually. The 2023/2024 edition is attached here. More than 1,700 EUCCC member companies have collaborated to compile the latest assessments, concerns, and recommendations of European businesses operating in China. This year, there are 1,058 recommendations for China to enhance its business environment. It's not just China; the European Union and European companies also need to play their part. Recommendations for the European Union include proactive engagement with China, rejecting calls for disengagement, improving coordination between member states and EU institutions to foster a unified European approach towards China, ensuring measured and proportionate responses to EU-China disagreements, and deepening cooperation in areas where interests align, such as combating climate change, international standard-setting, sustainable development, and WTO reform. Recommendations for European companies include maintaining strong communication between company headquarters and China operations, providing HQs with accurate, on-the-ground information for informed investment and operational decisions, integrating foreign staff into China operations and vice versa to maintain diverse teams and avoid talent silos, and establishing 'decoupling teams' to assess the costs of localization in China and disconnection from certain global systems.

At FinnCham, we are focusing on the opportunities that China is offering by promoting private sector growth and keeping companies engaged in business travel. China is also trying to attract foreign talent by extending the preferential individual income tax policy on foreigners' fringe benefits for another four years, until the end of 2027. You can find more information in China Briefing (Dezan Shira & Associates)

Together with other European Chambers, we provide a series of experts to share analyses of the current situation and what to expect. Just this week, Jakob Wallenberg shared insights on opportunities and challenges, and Nordea's Chief Economist, Tuuli Koivu, as well as Sinnvoll's Song Xin, will share their viewpoints on the current situation later this month. Please take a closer look at the events section. We hope that these events will assist companies in directing their business activities.

Our newest member company is SHARE-SSIC, which's primary focus is to help our members discover opportunities in China with the assistance of local governments. You can meet them by attending an event at their office on Oct 24 (event section).

On the behalf of FinnCham Beijing, I wish you all a fruitful autumn.

Ulla Nurmenniemi

Executive Director

FinnCham Beijing and Sichuan Chuanlian SME Chamber of Commerce have just signed a Friendly Business Strategic Cooperation Framework Agreement.  Signatories were President Li Hongyan from Sichuan SME Chamber and Chairman Juha Tuominen from FinnCham Beijing. 

The two sides held discussions at the first Sichuan Small and Medium sized Enterprise High Quality Development Conference in Chengdu in July. The parties decided to play a bridge role on promoting deep cooperation between member enterprises in fields such as economic and trade cooperation, and cultural exchanges. Both sides expressed that they would continue to explore and promote communication and cooperation between chambers of commerce, strengthen resource complementarity, and achieve common development and revitalization. Special thanks to Sichuan SME Chamber Vice President Zhou Li for making this happen.

FinnCham Beijing is part of Team Finland in China, and an outstanding platform for all Finnish businesses in China. For those companies which need more visibility, we have launched a Premium Membership. It's an upgrade from normal membership, as you can see from the table below.

For those companies in Finland, who are planning to expand their businesses to China, or are in the early stage and don't have an office in China yet, we have a distant membership. A very cost-effective way to make your company known to a large audience, and get essential contacts for your future.

Not a member yet: Join us HERE

FinnCham Beijing’s mission is to help Finnish companies to succeed in China