China Development Forum

The China Development Forum (CDF) is an annual high-level forum in Beijing hosted by the State Council, at which Chinese leaders brief international businesses on China’s planned economic development following the Two Sessions, and this year,  the new Five-Year Plan (see CBBC’s Continuity and Conviction). 

This year’s CDF, held on the 22 and 23 of March, was well attended by US and European CEOs. The UK was represented by senior leaders from HSBC, Standard Chartered, AstraZeneca, GSK, Swire, Rio Tinto, Anglo American, Prudential, IHG,  Shell and KPMG.  

Premier Li Qiang delivered the opening speech describing China as a stable economic partner against a backdrop of global instability. Discussions during the forum focused on the 15th Five-Year Plan and topics including AI, opening-up, industrial modernisation, the green transition, and the health sector.  

Sir Sebastian was invited to give a keynote speech on the high-level opening-up of the service sector, a copy of which can be found attached. He had the following reflections on the two-day forum: 

The meeting was overshadowed by the events transpiring in the Persian Gulf. Rather than focusing on the recently published 15th Five-Year Plan, Premier Li Qiang framed the current global landscape as a “clash of ideas” between unilateralism and protectionism and those pursuing deeper multilateral cooperation, including China. 

China was a “harbour of stability”, committed to rules-based international trade and opening-up. China’s large trade surplus reflected the competitiveness and hard work of Chinese companies rather than government subsidies, and bilateral trade was a mutual choice: China’s surplus corresponds to a “utility and welfare surplus” for its trading partners. 

Prominent Chinese politicians, including Han Wenxiu, the Party’s top economic policymaker, and Lan Fo’an, the Minister of Finance, spoke more about the 15th Five Year Plan. They mentioned their goals for China’s industrial policy, namely making innovation a key driver of growth, upgrading traditional industries, developing and commercialising new technologies, and ensuring the country’s self-sufficiency in critical technologies. This was raised alongside China’s push to boost consumption, partly through greater investment in people, including higher wages and expanded welfare spending, extending beyond education and skills policy. Importantly, both referred to the growing importance of services as a source for jobs and growth, with Director Han stating that China would aim for “balanced trade,” and that the trend of growing flows of outbound Chinese FDI would continue.  

Sir Sebastian’s speech was part of a panel on high-level opening-up of services. During this intervention, he highlighted the success of Prime Minister Keir Starmer’s visit and how CBBC looks forward to the Economic and Financial Dialogue (EFD) and the Joint Economic and Trade Commission (JETCO) happening in London later this year. He mentioned CBBC’s support for a possible bilateral UK-China free trade agreement on services, as well as the encouraging signs of structural reforms to boost household wealth and encourage more individual consumption. 

The Chinese side noted that they were satisfied with the attendance of American and European CEOs at the forum. Overall, despite some disappointment around the lack of clarity surrounding certain targets and measures in the Five-Year Plan for increasing consumption, the mood of the conference attendees vis-à-vis the Chinese economy was positive. 

Boao Forum for Asia 

The Boao Forum for Asia (BFA) is an annual forum in Hainan that welcomes global leaders from different backgrounds for exchanges on the development and economic integration of Asia. It is often referred to as the ‘Asian Davos’ and features stronger political representation than the CDF.  

NPC Chairman Zhao Leji delivered this year’s opening address, while speeches were also made by Singaporean Prime Minister Lawrence Wong and South Korean Prime Minister Kim Min-seok. Foreign media coverage of this year’s forum was light as the war in Iran dominated headlines. The forum’s major speeches reportedly focused on China’s role as a stabiliser for global trade amidst this instability.

Peter led CBBC’s delegation and participated in events, including delivering one of the eight speeches from business leaders to Chairman Zhao Leji, China’s third ranking political leader, and participating in a panel on Investing in China to Share the Future, which included Long Yongtu, the architect of China’s accession to the WTO.  

He also conducted a series of media interviews, including Bloomberg Morning News with Steven Engle, CGTN with Liu Xin and CCTV.

Peter’s speech to Chairman Zhao is attached. His reflections on the forum are as follows: 

CBBC was accorded an excellent profile, which can be attributed to the improved UK-China relations following the PM's visit.  

The subject for the BFA was “Shaping a Shared Future: New Dynamics, New Opportunities, New Cooperation”. Overall themes were similar to the CDF, with emphasis on how China is a reliable international partner that offers policy, economic and business stability. Collaboration and working together in business and in addressing geopolitical challenges were important themes in many of the dialogues. Discussions were dominated by the impact of conflict elsewhere in the world. Other discussions concerned supply chain disruptions, the impact of new technologies and AI, and the importance of cooperation to succeed. 

On the sidelines, we met with the Party Secretary of Hainan Province, Feng Fei. PS Feng was very pleased to welcome us and was fully briefed on our healthcare delegation to Hainan in May.  We also met with the Vice Mayor of Chongqing, Huang Maojun, who provided a detailed explanation of Chongqing’s economic advantages. He referenced the UK’s role as Country of Honour in the West China Fair and warmly welcomed our participation. 

The highlight of our meetings was the gathering of business and government leaders with National People’s Congress Chairman Zhao Leji. This group was probably more than 100 in size. Eight of us were asked to speak. In response, Chairman Zhao made the following key points: 

• The world economic landscape is very challenged as a result of “protectionism” and wars, and their negative economic consequences, particularly for trade; 
• There was a stout defence of the importance of the WTO, which, since it was founded in 1995, has witnessed a fivefold increase in the value of global trade, more than 70% of which is now governed by WTO rules; 
• The Chinese economy is now ranked the second largest in the world, with GDP exceeding RMB 140 trillion in 2025 (USD 20.4 trillion) and contributing more than 30% to world economic growth. This can be attributed to its “socialist system, mega size and administrative organisation”; 
• China does not seek to build a trade surplus with the rest of the world. This is a consequence of “comparative advantages” across many capabilities. Foreign companies have taken advantage of these structural and economic strengths by investing in China. Foreign companies contribute 27% towards China’s exports. These companies reap the benefits through dividend payments and cost efficiencies. It should be noted that China runs a trade deficit in services, and has done so for a long time; 
• China is often unfairly accused of "overcapacity utilisation”, where industrial production capacity exceeds market demand. In fact, China’s utilisation rate of some 74% is on a par with Europe (75%), the US, Japan and Korea, which all rank around the same level. China is in line with the rest of the world; 
• China provides industrial subsidies but in very defined areas of R&D, not directly linked to export promotion and always in compliance with WTO rules. China believes in the principles of openness, fairness and competition.  
• China will never deviate from its path of “reform and opening.” It seeks to deepen economic cooperation with many foreign companies on the basis of mutual benefits. China now offers visa waiver schemes to some 79 countries and does not seek unconditional reciprocity; 
• Foreign companies will always be welcome to invest in China’s economic growth and enjoy, for example, the benefits of its focus on "high-quality productive forces.” 

Further Enquiries:

We hope you find these insights useful. If you have any questions, please contact alistair.burlinson@cbbc.org  

With best regards, 
Your CBBC Policy Team