BEIJING: Against a global economic backdrop of rising protectionism and fragmentation, will the world’s second-largest economy still be dedicated to opening up and championing economic globalization?
The message China has made is loud and clear: instead of retreating into a closed economy amid external uncertainties, the country will walk its talk in becoming more and more open.
This message is backed up by both the country’s track record and action plans, which have set a positive example in building bridges rather than walls in a world where only cooperation could bring prosperity.
China has been translating its opening-up pledge into concrete actions, with fruitful outcomes evidenced by the super-large market’s robust appeal to foreign investors.
Regarding expanding foreign investors’ access to the Chinese economy, the country has slashed related items on its national negative list from 190 to 29 in recent years, with even greater market openness in the country’s pilot free trade zones.
In a landmark opening up gesture, all restrictions on foreign investment in the manufacturing sector were removed in China last year, while some developed countries still set barriers against foreign investment in certain manufacturing industries.
On trade, China’s overall tariff level has been cut to 7.3 percent, a fairly low level nearing the average of developed countries. China has also extended zero-tariff treatment to all 43 least-developed countries it has diplomatic ties with, the first developing country and major global economy to implement such a unilateral opening up initiative.
According to the World Openness Report 2024, which tracks 129 economies, the openness index for developed economies declined by 7.7 percent from 2008 to 2023, while emerging markets and developing economies saw an increase of 5 percent. Notably, China’s openness index rose by 11.89 percent, ranking among the fastest-growing globally.
Growing economic openness has further cemented China’s position as the world’s second-largest foreign direct investment destination. Hosting 1.24 million foreign firms across 20 industries and 115 sub-sectors, China has attracted nearly 3 trillion U.S. dollars in cumulative investment during the period.
Christian Hartel, president and CEO of German chemical giant Wacker Chemie AG, said the company has “benefited greatly from China’s reforms and openness.” The country, its largest single market, accounts for nearly a third of group sales and has drawn 1 billion euros in investments. –Agencies
