In an era well defined by geopolitical uncertainty and rapidly evolving economic landscapes, one lesson from history remains constant that is openness fuels progress while isolation breeds stagnation. In the modern world, there are only a few examples of such phenomenon as the tremendous change in China that happened since the introduction of the policy of reform and opening up in 1978. What started as a fundamental experiment has turned into one of the most radical development narratives in the history of the world (hundreds of millions of people have been taken out of poverty), industrialization has been accelerated faster than ever before and China is now a powerhouse of economic growth in the world. When the world is redefining its global supply chains, the economic governance is evolving and most nations are turning inward, China is pursuing another route which is characterized by increased openness, more integration and common development and prosperity for all.
This has been reiterated many times by the Chinese President Xi Jinping, who has said that the determination of China to open up at a high standard will not change and that the door of China will open further to the world. This message is not just an indication of confidence in the domestic trend of China but also a sign that the global economies are the same.
Four decades dedication to transparency
Openness is a quality that has characterized the economic approach of China in the past four decades. The nation is gaining pace in this agenda since the 18th National Congress of the Communist Party of China (CPC) in 2012 with a more proactive and strategic framework. China has become an unavoidable companion of the economies in the world smoothly entering the global chains of industry, supply and innovation. It is this more holistic integration which has helped China to modernize, gain strength in its industrial capabilities and has helped China positively contribute to the world markets. Report to the 20th CPC National Congress and the resolutions of its recent third plenary session further focus on high standard opening up as a key cornerstone of future development of China. The high-quality opening up involves the quality of governance, alignment of the institution, increased transparency and improved cooperation. It means not only opening up but more intelligently and in a more sustainable way.
Grant measures representing long term vision
The openness in China is a strategic investment that is shown through specific policy action. The country has extended its unilateral visa-free program to 47 countries as of June this year which is a major move toward facilitating the people-to-people interactions and enhancing global connectedness. More is being done to open up markets in commodities, services, capital flows and free movement of labor. Significantly, China is also promoting the unilateral access of the least developed nations in the world as this would be the best approach that is balancing the trade openness and the global equity and prosperity. China has also gone further to enhance its domestic business environment. Since 2012, the reduction of the foreign investment negative list on eight occasions from 190 restricted items down to just 29 on the national list and 27 in pilot free trade zones signals a clear willingness to welcome more foreign participation which is a clear indication that it is willing to open up to more foreign involvement. Such reforms minimize regulations, enhance transparency and fair competition between local and foreign investors.
A vote of confidence is foreign investment
The world economic environment has been experiencing some head winds but today China remains an investment destination to foreign businesses. By March this year, 1.24 million foreign enterprises had been incorporated in China and the total investment was almost USD 3 trillion. These numbers show long term faith in China as a stable country, market size, infrastructure as well as innovativeness. Most importantly, foreign firms have not just gained but also played significant roles in reform and opening-up process in China. Their involvement has generated competition, technological capability and helped in modernization of the Chinese industries. They have in their turn reaped huge commercial pay-offs and the chance to access the most dynamic consumer environment in the world.
Belt and Road: A global ground of mutual growth
The transparency of China is not confined to its domestic policies but spreads to foreign countries in the form of such historic ventures as the Belt and Road Initiative (BRI). The BRI has been involved in more than 30 international organizations with more than 200 cooperation agreements signed in over 150 countries and has become one of the most significant platforms of cross-border development. It bridges continents with infrastructure, trade opening, monetary collaboration and cultural interactions by building fresh engines of expansion to the global south. High-quality BRI cooperation is increasingly focused on sustainability, digital connectivity and innovation by ensuring that future projects deliver both economic benefits and long-term resilience. With the shifting landscape of the global governance structures, China developed experience related to the large-scale developmental projects and emerges as an important participant in discourse of new forms of collaborations.
The Road Ahead: Opening wider, opening smarter
The world is in a very critical inflection point. The challenges that are faced beyond the national borders include economic fragmentation, technological competition and geopolitical tensions. In this regard, high-standard opening up as committed to by China, has a global meaning. To the international community, the further openness of China implies about better world supply chains.
International business market expansion
Increased possibilities of developing nations to join the global trade is based on common grounds on innovation, climate action and technological collaboration. To China, high-standard opening up has the strategic benefits that defines accelerated modernization, good governance and institutional quality. Improved competitiveness in the international markets also explaining greater involvement in the formulation of the world economic regulations. The decision to become more open is not only an economic decision made by China as it goes into the future but it is also a dream of a more interconnected, cooperative and prosperous world.
