Ample room for next stage of high-quality development, experts say, as 2023 economic goal well within reach

A shopper pays for purchases with his smartphone at a supermarket in Shanghai in January. Stimulating domestic demand will make China more attactive to foreign investment and trade partners. (PROVIDED TO CHINA DAILY)

China has ample policy room to take a myriad of opening-up measures for trade and investment facilitation and liberalization, to hedge against external pressure and internal difficulties, trade experts and economists said.

Carried out properly, the steps can ensure a more enabling business climate and further vitalize the nation’s unified domestic market, thereby promoting high-quality development and consolidating the confidence of trading partners and foreign investors, they said.

Their comments came as the annual tone-setting Central Economic Work Conference (CEWC), held in Beijing from Dec 11 to 12, listed the expansion of high-standard opening-up as one of the nine priorities for economic work in 2024.

Xi Jinping, general secretary of the Communist Party of China Central Committee and Chinese president, delivered an important speech at the meeting, which reviewed the economic work in 2023, analyzed the current situation, and arranged next year’s economic work.

Zhao Zhongxiu, president of the University of International Business and Economics in Beijing, said: “Facing rising protectionism in the world, China is determined to expand high-level opening-up. The key is firmly pushing forward institutional opening-up and aligning with international advanced levels in areas such as rules, regulations, management and standards.”

“Only through high-standard opening-up could we further improve the socialist market economy system and strengthen the ties and compatibility between the Chinese and international economies, against the background of uncertainties in China-US relations and reorganization of global industrial and supply chains,” Zhao added.

Since the 18th National Congress of the CPC in 2012, Xi has made important statements on China unwaveringly promoting high-level opening-up and clearly demonstrating the country’s determination to expand opening-up as it pursues progress in Chinese modernization.

While presiding over the second meeting of the Central Commission for Comprehensively Deepening Reform on July 11, Xi emphasized that establishing new systems for a higher-level open economy is a strategic measure to promote reform and development through opening-up, Xinhua News Agency reported.

Experts said the country’s opening-up drive in the next stage is expected to focus on stabilizing foreign investment and increasing openness in the services industry and digital trade. Measures in this regard could range from broadening market access in services sectors such as telecommunications, healthcare, culture, and entertainment, and leveling the playing field for all types of market entities, they said.

Wei Jianguo, former vice-minister of commerce, said he expects that China will continue to enhance the market-oriented, law-based business climate that is up to international standards, and abolish regulations that are not in line with the pursuit.

“Opening up the services industry is a key task to thoroughly implement the opening-up policy, and it is quite innovative and sensible for China to open up financial markets while strengthening supervision to defuse systemic risks. Yet there is still much room for improvement regarding aligning with high-level global economic and trade rules,” Wei said.

Speaking at an economic forum in Beijing on Dec 13, Tang Wenhong, assistant minister of commerce, said China will introduce several innovative and comprehensive measures in areas such as trade, investment and finance.

Tang Yao, an associate professor of applied economics at Peking University’s Guanghua School of Management, said the most effective way for China to become more attractive to foreign investment and trade partners is to further unleash the potential of the domestic market.

The CEWC said that market access for the telecommunications, medical, and other service industries will be eased, while efforts should be made to align with high-standard global economic and trade rules, resolve issues such as cross-border data flow and equal participation in government procurement, and make “Invest in China” a popular choice.

Experts noted that after the COVID-19 pandemic, some people outside China have misconceptions about the country, so it is important to let the world fully realize China’s determination on opening-up.

“I know China will continue to open up and will continue to integrate (with the rest of the world), but I think from where we stand today, it is already a very open, friendly, and good place to do business,” said Paul Murray, CEO of life and health reinsurance at Swiss Re, a global reinsurer.

According to officials and experts, China is confident and capable of reaching this year’s GDP growth target of around 5 percent, and policymakers have ample tools to stabilize the economy next year.

The economy will likely expand by around 5 percent next year, given strong policy support and recovery of domestic demand, they said.

“The country has the conditions and capabilities to meet its economic and social development objectives for 2023 … as economic recovery continues to gather steam and a series of policies take effect gradually,” said Li Chao, a spokeswoman for the National Development and Reform Commission (NDRC), China’s top economic regulator.

The NDRC will closely monitor changes in economic operations, strengthen situation analysis and policy research, and intensify macroeconomic regulation. Primary focus will be placed on the key growth targets for the coming year, she told a news conference in Beijing on Dec 19.

Li highlighted the commission’s commitment to reinforcing policy reserves and ensuring a robust arsenal of policy tools to effectively respond to diverse risks and challenges that may arise.

According to the commission, China has unveiled the first batch of nearly 2,900 projects, using funds raised through the additional 1 trillion yuan ($140 billion) worth of sovereign bonds, which were announced in October for issue in the fourth quarter. The projects are mainly in fields like post-disaster recovery reconstruction, improvements to disaster prevention and reduction capability, and construction of high-standard farmland.

During the National Development and Reform Work Conference held from Dec 17 to 18, the NDRC said it will formulate targeted measures to bolster the economy, and more efforts will be made to further boost the development of the private sector and encourage its participation in key national-level engineering projects and other projects aimed at addressing the weak links in the economy.

According to the conference, the commission will continue to carry out midterm evaluation of the 14th Five-Year Plan (2021-25) and has begun its preliminary work on the 15th Five-Year Plan (2026-30).

Wang Yiming, vice-chairman of the China Center for International Economic Exchanges, said most institutions forecast China’s GDP will rise by around 5.2 percent this year, significantly higher than that of major economies, including the United States, the eurozone and Japan.

“China remains the most powerful engine for global growth,” Wang said on Dec 19 at a seminar of the China Macroeconomy Forum, or CMF, a Renmin University of China think tank. 

Liu Xiaoguang, a professor at the Renmin University of China’s National Academy of Development and Strategy, said the CMF has revised upward its 2024 China GDP forecast to 5 percent from 4.8 percent, and the country should set next year’s growth target at 5 percent at least. 

Meanwhile, the State Council, China’s Cabinet, has adopted a raft of policy measures to accelerate the building of a unified national market, as part of the country’s efforts to boost domestic demand and consolidate the foundations of economic recovery. 

While chairing an executive meeting of the State Council on Dec 18, Premier Li Qiang heard a report on the progress of building a unified national market. Noting that efforts in this regard will help facilitate domestic circulation and promote the building of a new development paradigm, the meeting highlighted the need to accelerate the improvement of various aspects, including market access, intellectual property rights protection and social credit.

Efforts will be made to tackle issues such as market segmentation and local protectionism through special rectification campaigns to remove obstacles hindering the development of a unified national market, the meeting said. 

Xu Hongcai, deputy director of the China Association of Policy Science’s Economic Policy Committee, said the key to building a unified national market lies in dismantling barriers hindering the free flow of various factors such as population, capital, and land.

Contact the writers at liuzhihua@chinadaily.com.cn