SAI Insights on Implications of the Chinese 13th Five Year
China’s annual political season – widely known as the ‘two sessions’ was kicked off in the first week of March, 2016. 2016 is the first year of the 13th FYP, which makes the two sessions of this year more meaningful. The slowdown of growth in the Chinese economy starting in 2013 and the financial market turmoil in 2015 have attracted increasing concerns about the future economic outlook in China.
Along with the continually released policies and guidelines, the Chinese government is making plans to restructure the economy and to re-strengthen the competitiveness of the Chinese economy. A number of industries are facing substantial changes due to the new policies based on the key themes of ‘capacity reduction, inventory reduction, leverage reduction, cost reduction and efficiency improvement where there are shortages’. The major industries facing dramatic changes include:
· Industries with serious overcapacity, such as steel, coal and other commodities
· Energy intensive industries and high pollution industries
· Real estate and related industries
· Industries highly controlled by state-owned companies
· The ten priority industries strongly encouraged by the government which are:
– The next-generation information technology
– Control tools and robotics
– Aerospace equipment
– Ocean engineering equipment and high-tech ships
– Railway equipment
– Energy saving and new energy vehicles
– Power equipment
– New materials
– Medicine and medical devices
– Agricultural machinery
SAI is well-placed to support your assessments of opportunities or threats as a result of the new Chinese 13th Five Year Plan. SAI provides services covering market opportunity assessments, M&A support, new product application assessments and other market intelligence services in China and globally.
Please contact Greg Downes, SAI Asia Senior Vice President, via email gdownes@saiasia.cn or telephone: +65 6550 9827 to schedule a brief teleconference to discuss the how SAI may support your specific requirements.