By Lu Gang, Research Team on “Basic Approach and Major Measures for Going Global during the 14th Five-Year Plan Period”, Research Department of Foreign Economic Relations, DRC

Research Report, No.349, 2021 (Total 6414) 2021-11-23

Abstract: During the 14th Five-Year Plan period, China is facing a more complicated international situation in going global. The COVID-19 pandemic has triggered global financial and economic crisis, with investment protectionism rearing its ugly head. The Sino-US relations have shifted from strategic cooperation to strategic competition, the global value chain has changed from expansion to contraction, and competition among countries to obtain the leading position in scientific and technological development in the context of new industrial revolution has become intensified. Technological revolution is changing the performance of international investment, and international investment treaties of the next-generation have increased. The new situation has brought multiple challenges for China to raise its global presence. First, China’s direct investment in high-tech fields in developed countries is facing strict restrictions. Second, the US containment strategy on China has significantly increased the risk of compliance operation of multinational companies in China. Third, the high risks of some developing countries have posed a threat to China’s investment security. However, there are also opportunities for China to go global. China’s direct investment in countries along the One Belt and One Road routes is expected to continue to grow, the value of RMB will remain stable or even appreciate by a small margin, and China will have more opportunities to participate in multilateral and regional trade and investment arrangements and exert greater influence on international rule-making.

Keywords: the 14th Five-Year Plan, going global, situation, opportunities, challenges