Why China Is Still A Top Location For European Companies

Under President Xi Jinping's much-hyped ‘dual circulation strategy' (DCS), China will depend mainly on “domestic circulation” for its next phase of development, supported by external resources through “international circulation”.

The former is intended to reduce China's dependence on overseas markets and technology for its long-term development, a shift brought on by a deepening rift with the US, while the latter entails greater market opening to attract more foreign investment in high-end manufacturing to strengthen its supply chain security and deter foreign countries' from luring firms away from China.

The DCS is likely to be a key priority in the government's 14th five-year plan (2021-2025), which is due to be unveiled during the annual parliament session in early 2021.