China is making significant strides in opening its domestic markets to foreign businesses, even as it continues to bolster its internal economy. Despite some foreign media narratives suggesting that China is becoming self-isolating and prioritizing national security over economic development, the nation remains steadfast in its commitment to high-standard opening-up.
President Xi Jinping emphasized that focusing on domestic circulation does not mean developing behind closed doors. Instead, it aims to enhance connectivity between internal and external markets, leveraging the strengths of both to achieve more sustainable growth. To support this, China is implementing new rules, regulations, and standards designed to ease market access and create a level playing field for foreign companies, fostering a market-oriented, law-based, and internationalized business environment.
In response to various concerns from foreign investors—such as economic uncertainties, real estate issues, local debt, and demographic challenges—China remains optimistic. In 2023, foreign direct investment into China saw a slight decline compared to the previous year, but officials are hopeful for future growth.
The State Council has introduced 24 new guidelines aimed at attracting global capital and optimizing the business landscape for multinational corporations. These measures encourage foreign investors to establish major scientific research projects, ensure equal treatment for foreign and domestic companies, facilitate cross-border data flows, allow foreign enterprises to participate fully in government procurement, and provide stronger fiscal support and tax incentives. Additionally, foreign-invested projects in the biomedicine sector will benefit from accelerated implementation.
China boasts an ultra-large market and a comprehensive industrial chain, with over 220 industrial products leading globally in terms of output. Officials highlight that finding reliable and cost-efficient suppliers in China is more accessible than in other regions. In 2023 alone, 239 items were added to the Catalogue of Industries Encouraged for Foreign Investment.
On the local front, initiatives like the campaign in Hunan Province led by Party Secretary Shen Xiaoming aim to eliminate local protectionism, reduce market fragmentation, and prevent discrimination against foreign businesses. These efforts are part of a broader strategy to create a more welcoming environment for international companies.
China asserts that its push to open up further is driven by economic benefits rather than foreign pressure. The influx of foreign companies brings valuable technologies and expertise, fostering competition that compels domestic firms to innovate and improve. This competition not only enhances the quality of goods available to Chinese consumers but also provides foreign companies with attractive market opportunities.
As China continues to evolve, it remains dedicated to creating a robust, sustainable economy that leverages both domestic demand and global investment. The nation's next chapter promises to reinforce China's position as a leading global economic powerhouse.
Reference(s):
cgtn.com
