Beijing is trying to reassure investors by setting up new centers to facilitate the administrative procedures of companies, such as in the southeast of the Chinese capital. One of the stops includes the Administrative Service Center of the Economic Development Zone – 22,500 m², 586 agents – and its “one-stop shop.” The center handles 93 administrative issues in around twenty areas and aims to expedite procedures for foreign companies.

Thanks to these new service counters, foreigners now only need to make two visits instead of four. Furthermore, operation permits are granted within five business days. As China eased its strict Covid controls at the borders last year, Beijing has launched a campaign to attract investors and “foreign talents.”

The site currently employs 30,000 people, including engineers and management teams. More facilities are being built for the employees, including gyms and cafes. The expansion zone of the Chinese capital aims to be a model for the expansion of service industries, coupled with a pilot free trade zone, featuring e-commerce, Baidu’s robot taxis on the country’s largest autonomous driving base, Zhonghang Zhi’s drones, Xinghe’s carrier rockets, SMIC’s semiconductors, as well as pharmaceutical industries like Bayer and Sanofi.

Following Shenzhen, Guangzhou, and Shanghai, the capital’s expansion zone aspires to be a model for service industry expansion, linked to a pilot free trade zone. The Shanghai Composite Index fell below 2700 points on Friday, and 600 stocks lost more than 9%, the steepest drop since February 2020. The IMF asserts that efforts to improve data transparency are crucial.

The institution, based in Washington, says it has identified “significant gaps” in China’s quarterly GDP data, public administration figures, and local government finances. The IMF experts also cite the sharp slowdown in real estate, exemplified by the decline of major developers like Country Garden and Evergrande, which was placed under judicial liquidation by a Hong Kong court this week. The demand for new homes is expected to decrease by half in the next decade, according to the institution.

Chinese growth is also affected by the decline in external demand in a gloomy global context. The Covid years have convinced most countries to reduce their dependence on China for their industrial production, particularly concerning sensitive technologies. This is a trend that domestic Chinese demand cannot fully compensate for.