China pledges further opening up to the world, writes Wang Zhijian, the Chinese Consul-general in Christchurch.
The recent trade conflicts between the United States and China have aroused worries that the unilateral protectionist measures of US government might incur trade wars between the largest two economies and hence impede the global economic recovery and growth still overshadowed by the financial crisis originated from Wall Street 10 years ago.
While certain major advanced economies resorted to isolationism and protectionism, China has made new pledges to open its door wider. The Boao Forum, also known as the "Asian Davos", recently convened in Hainnan Province of China, has boosted the confidence in global economic co-operation as Chinese President Xi Jinping in his keynote speech announced substantial measures to further expand China’s economic reform and opening-up.
China’s pledges have been warmly applauded by international stakeholders as good news in the face of anti-globalisation sentiment. Though the unveiling of these pledges has little to do with the ongoing trade conflict with the US, it reflects China’s consistent determination to push forward trade and investment facilitation and seek win-win outcomes with other countries.
The new measures touch upon several key aspects.
First, China will significantly broaden market access. It will ease restrictions on the establishment of foreign financial institutions in China, accelerate the opening-up of its insurance industry, and reduce limits on foreign investment in manufacturing industries.
Second, China will reduce tariffs and expand imports. China will significantly lower the import tariffs for vehicles and some other products. On the other hand, it is hoped that the imposed restrictions on normal trade of high-tech products with China could be lifted.
Third, China will strengthen intellectual property protection. China is re-instituting the State Intellectual Property Office to step up law enforcement and significantly raise the cost for offenders.
Fourth, China is committed to create a more attractive investment environment for foreign investors. The Government will remove obstacles that prevent the market from playing a decisive role in resource allocation. It will complete the revision of the negative list on foreign investment in the first half of the year and implement across the board the management system based on pre-establishment national treatment and negative list.
These measures expected to be implemented soon will inspire confidence in China’s continued economic growth as well as injecting new driving force for global economy.
It is worth noting that Hainan Province, the venue of the annual forum, which is famous for its sunny beach resorts nowadays, used to be one of the most remote and backward parts of China.
The province owes its economic miracle to reform and opening-up. The island was established as a Special Economic Zone 30 years ago, and has now become one of China’s many portals to the wider world.
This year marks the 40th anniversary of the launching of reform and opening-up policy in China. The policy has fundamentally changed China, and the experience China has learnt from its 40 years of phenomenal economic rise is to keep open-minded and embrace the world. In the global village where interests of different countries are increasingly intertwined, open systems are the best course of action.
The economic co-operation between China and New Zealand has fully demonstrated the benefits of trade and investment facilitation. The two economies are highly complementary to each other and free trade has brought the comparative advantages into full play.
The bilateral trade volume has increased from $NZ1.7 million in 1972 to more than $24billion last year, bringing tangible benefits to enterprises and consumers in both countries. And the negotiation on upgrading bilateral trade agreement has so far kept good momentum.
Both countries also firmly support the multi-trading system symbolised by WTO, and have reinforced co-operation in Apec and other multilateral frameworks. As globalisation is inevitable and irreversible, the only future for all countries and peoples on this planet is a shared one.
To build a world of greater prosperity is a collective task that demands the input and responsibility of all global stakeholders.
