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A new pattern of all-round opening up is on the cards for China， after eight economic tasks for 2018 were mapped out during the ann ual threeday Central Economic Work Conference held in late December 2017.
Focusing on high-quality development， tasks this year include supply-side structural reform， rural vitalization and regional coordinated development. In regard to further opening its economy to foreign investments， China vows to push for nationwide implementation of a pre-establishment national treatment system， as well as a streamlined negative list， which identifies sectors and businesses that are off-limits or restricted from foreign investment， to regulate market access to foreign businesses. In addition， the country plans to launch more free trade zone pilot sites and guide foreign investors to operate in an efficient way. Increase in imports and reduction in import tariffs on some products to promote balanced trade are also in the offing， according to the conference.
Two economists believe that China’s determination to realize a new pattern of all-round opening up signaled its policy of improving the business environment and spearheading global trade liberalization and facilitation in the next five to 10 years. Edited excerpts of their views follow：
Zhang YuYan
Director of Institute of World Economics and Politics with Chinese Academy of Social Sciences
Firstly， a new pattern of all-round opening up means China will open up to the outside world on a larger scale and wider scope. Geographically， it will welcome businesses from every country， not only those from developed or neighboring nations. Secondly， the conference indicates that China will invite investments in more sectors. Previously， China encouraged foreign companies to invest in the manufacturing sector. With the deepening of globalization， the service sectors such as finance， insurance， education and consultancy will be included.
All-round opening up is also showcased from a space perspective. Starting in China’s coastal areas， the opening up policy is being pushed forward to cover landlocked regions in central and west China， especially with the implementation of the Belt and Road Initiative.
In the new era， all-round opening up requires the Chinese Government to provide high-quality service and strengthened supervision so as to regulate the market， lower transaction costs and reduce uncertainties. Pushing forward a new pattern of all-round opening up is indispensible to comprehensively deepening domestic reform and building up a modern economic system. Modernization of China’s economic system will not only benefit itself， but also give momentum to global growth. As the world’s second largest economy， China is supposed to grow in line with the trend of globalization. Therefore， when we talk about business efficiency， product quality and competitive edges， we are targeting both domestic and global markets. In the future， all sectors should strive for this direction. From a global perspective， China should participate more proactively in international economic cooperation and competition， and take a leading role in shaping a fairer international order. The Belt and Road Initiative is an institutional roadmap that rolls out concrete measures to push forward the all-round opening up. Through improving infrastructure connectivity under the initiative， China could deepen and expand its opening up， and realize the free flow of consumption and factors of production.
Over recent years， China has gained rich experience in regard to free trade zones （FTZ）， which could be applied to countries participating in the initiative and launching industrial parks and FTZs to spur national economies.
China plans to revamp policies in order to promote trade liberalization and facilitation. When it comes to restrictions on inward foreign capital， the country will follow the standard international conventions more progressively. It will also work to create a sound financial and institutional environment for countries participating in the Belt and Road Initiative.
Bai Ming
Deputy Director of International Market Research Institute of Chinese Academy of International Trade and Economic Cooperation， Ministry of Commerce
The implication of all-round opening up goes further than attracting foreign investments. Measures targeting both domestic and international conditions should be in place to drive the new pattern of all-round opening up.
The new policy of promoting new pattern of all-round opening up encourages expansion of international cooperation in the global arena. Currently， China’s voice and role are improving in international economic governance. Through reaching free trade partnerships and implementing the Belt and Road Initiative， the country is engaging with the outside world more proactively. In addition， the policy underpins opening-up efforts through strengthened domestic competitiveness. Previously， when Chinese businesses tried to go global， they often encountered insurmountable barriers due to domestic weakness and incompetency. Things have changed. Since the country is promoting the “Made in China 2025” program of transforming China into a leading manufacturing power， business competitiveness has strengthened.
The new policy requires nationwide implementation of a pre-establishment national treatment system as well as a streamlined negative list approach for regulating market access of foreign businesses. This shows foreign businesses are playing on an equal footing with their Chinese peers.
It doesn’t mean China’s domestic business environment is worsening. We should rightfully look at the pre-establishment national treatment system. Admittedly， China didn’t do a perfect job in attracting foreign investments. However， just because of these imperfections， the country continues to revamp related policies. It is a sign of openness.
China used to offer super-preferential policies to foreign investors， but as both Chinese and foreign businesses grow， a more equal playing field is of greater importance. On this basis， a stable business environment should be created.
China also introduced antimonopoly laws and probed some transnational companies， the result of an improving legal system to protect businesses， domestic or international. By doing all this， China is actually following the principles of market-oriented economy. For the benefits of foreign investors， China has also vowed to protect intellectual property rights.
Focusing on high-quality development， tasks this year include supply-side structural reform， rural vitalization and regional coordinated development. In regard to further opening its economy to foreign investments， China vows to push for nationwide implementation of a pre-establishment national treatment system， as well as a streamlined negative list， which identifies sectors and businesses that are off-limits or restricted from foreign investment， to regulate market access to foreign businesses. In addition， the country plans to launch more free trade zone pilot sites and guide foreign investors to operate in an efficient way. Increase in imports and reduction in import tariffs on some products to promote balanced trade are also in the offing， according to the conference.
Two economists believe that China’s determination to realize a new pattern of all-round opening up signaled its policy of improving the business environment and spearheading global trade liberalization and facilitation in the next five to 10 years. Edited excerpts of their views follow：
Zhang YuYan
Director of Institute of World Economics and Politics with Chinese Academy of Social Sciences
Firstly， a new pattern of all-round opening up means China will open up to the outside world on a larger scale and wider scope. Geographically， it will welcome businesses from every country， not only those from developed or neighboring nations. Secondly， the conference indicates that China will invite investments in more sectors. Previously， China encouraged foreign companies to invest in the manufacturing sector. With the deepening of globalization， the service sectors such as finance， insurance， education and consultancy will be included.
All-round opening up is also showcased from a space perspective. Starting in China’s coastal areas， the opening up policy is being pushed forward to cover landlocked regions in central and west China， especially with the implementation of the Belt and Road Initiative.
In the new era， all-round opening up requires the Chinese Government to provide high-quality service and strengthened supervision so as to regulate the market， lower transaction costs and reduce uncertainties. Pushing forward a new pattern of all-round opening up is indispensible to comprehensively deepening domestic reform and building up a modern economic system. Modernization of China’s economic system will not only benefit itself， but also give momentum to global growth. As the world’s second largest economy， China is supposed to grow in line with the trend of globalization. Therefore， when we talk about business efficiency， product quality and competitive edges， we are targeting both domestic and global markets. In the future， all sectors should strive for this direction. From a global perspective， China should participate more proactively in international economic cooperation and competition， and take a leading role in shaping a fairer international order. The Belt and Road Initiative is an institutional roadmap that rolls out concrete measures to push forward the all-round opening up. Through improving infrastructure connectivity under the initiative， China could deepen and expand its opening up， and realize the free flow of consumption and factors of production.
Over recent years， China has gained rich experience in regard to free trade zones （FTZ）， which could be applied to countries participating in the initiative and launching industrial parks and FTZs to spur national economies.
China plans to revamp policies in order to promote trade liberalization and facilitation. When it comes to restrictions on inward foreign capital， the country will follow the standard international conventions more progressively. It will also work to create a sound financial and institutional environment for countries participating in the Belt and Road Initiative.
Bai Ming
Deputy Director of International Market Research Institute of Chinese Academy of International Trade and Economic Cooperation， Ministry of Commerce
The implication of all-round opening up goes further than attracting foreign investments. Measures targeting both domestic and international conditions should be in place to drive the new pattern of all-round opening up.
The new policy of promoting new pattern of all-round opening up encourages expansion of international cooperation in the global arena. Currently， China’s voice and role are improving in international economic governance. Through reaching free trade partnerships and implementing the Belt and Road Initiative， the country is engaging with the outside world more proactively. In addition， the policy underpins opening-up efforts through strengthened domestic competitiveness. Previously， when Chinese businesses tried to go global， they often encountered insurmountable barriers due to domestic weakness and incompetency. Things have changed. Since the country is promoting the “Made in China 2025” program of transforming China into a leading manufacturing power， business competitiveness has strengthened.
The new policy requires nationwide implementation of a pre-establishment national treatment system as well as a streamlined negative list approach for regulating market access of foreign businesses. This shows foreign businesses are playing on an equal footing with their Chinese peers.
It doesn’t mean China’s domestic business environment is worsening. We should rightfully look at the pre-establishment national treatment system. Admittedly， China didn’t do a perfect job in attracting foreign investments. However， just because of these imperfections， the country continues to revamp related policies. It is a sign of openness.
China used to offer super-preferential policies to foreign investors， but as both Chinese and foreign businesses grow， a more equal playing field is of greater importance. On this basis， a stable business environment should be created.
China also introduced antimonopoly laws and probed some transnational companies， the result of an improving legal system to protect businesses， domestic or international. By doing all this， China is actually following the principles of market-oriented economy. For the benefits of foreign investors， China has also vowed to protect intellectual property rights.