industry in China. The output value of China’s manufacturing industry reached 25% of the global manufacturing output in 2014 and contributed to the world’s GDP. Figures for 2016 from CIA show that China exported 1.99 trillion dollars (cia.gov. 2018). As of the end of 2017, the PMI of China’s manufacturing was 51.6% (Stats.gov.cn,2017), although it was 0.2% lower than last month, it still reached the annual average level, and the manufacturing industry maintained steady growth. China’s large-scale foreign trade has, to a certain extent, improved the employment status and economic development of its trading partners. However, the low price of Chinese goods threatens the local products of the importing countries. For example, India has adopted trade protection measures to impose anti-dumping duties on 93 types of Chinese imports. In fact, the world has not stopped the anti-dumping cases against China. Due to anti-dumping problems, developed countries such as Europe and the United States do not recognise China’s market economy status and they believe that China did not fulfilled its commitments when it joined the WTO in 2001. Europe and America want to restrict the development of China’s trade.

Xi Jinping is regarded as China’s most powerful leader since Mao Zedong because the constitutional regulation regarding the reappointment of the country’s president for more than two terms was abolished. In addition, Xi Jinping’s ideas were written into the constitution. “the system itself is extremely unusual. China has two ladders of authority: the government and the party and the party hierarchy outranks the state one” (Anonymous, 2018). Most Chinese are against centralisation and regard it as regressive. However, it has positive elements. A centralised approach helps policy implementation and sustainability, which may have a positive impact on the economy. It is widely believed that this will add a lot of uncertainty to China’s political and economic future. “An important factor influencing corporate finance and economic growth in China lies in its government sponsored industrial policies”. (Chen et al. 2017). China’s 13th Five-Year Plan shows the economic policy and targets. The biggest concern is the reform of China’s economic structure. China is shifting from low-quality industries to high-quality manufacturing, eliminating outdated production facilities, and enhancing innovation and smart production to increase production technology and efficiency. This will further expand China’s manufacturing advantage and increase its international competitiveness. For the service industry, China further opened its financial markets to the world and promoted the establishment of a green financial system, which can attract foreign financi