New round of opening-up policies planned
February 6, 2018 Category Foreign investment, Weekly
To celebrate the 40th anniversary of the policy of reform and opening up launched by Deng Xiaoping at the end of 1978, China is planning a fresh round of opening-up policies. The four key aspects of the new opening-up policy are:
• Access: giving foreign investors greater access to the financial sector
• Services: further opening up the manufacturing and services sectors
• IP rights: strengthening protection for intellectual property rights (IP)
• Imports: increasing imports to balance overall trade
According to the China Daily, “China’s push toward further opening-up promises to be a game-changer that could help usher in a new era in global trade, international cooperation and globalization.” The measures are expected to inject new growth momentum into the global economy. At a study meeting of the leadership of the Chinese Communist Party, President Xi Jinping called for the development of a modernized economy to push the country’s economic development to the next higher level. The big idea is that opening up on all fronts should help not just China but the entire world.
Honson To, Chairman of global auditing firm KPMG’s Asia-Pacific region said that “biomedicine, internet, new materials, high-end equipment, and science and technology services will be hot areas for foreign companies to invest in China in the next stage, as the country is experiencing a diversification of innovative economic structure and acceleration of industrial upgrading.” He identified several fast-growing fields attractive to foreign investment: green finance, technology, high-end consumption, food safety, education, healthcare, insurance, natural resources, chemicals, traditional equipment manufacturing, engineering contracting, agriculture, and services-related businesses.
According to Wei Jianguo, former Vice Minister of Commerce, China’s broadminded, or ‘World First’, approach to global development is a sagacious response to “new challenges such as ‘America First’ and new policies from other economies in terms of gaining FDI”. He added that all foreign companies will have equal opportunities to participate in the Belt and Road Initiative and participate in the economic development of China.
The central government also plans to open new free ports in Shanghai and other select cities as another step to open its economy to foreign players and further support trade and maritime-related services.
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