Global opportunities, opening-up efforts and boost to foreign investment among benefits hailed

Experts expressed optimism about China’s long-term social and economic policies outlined in the resolution on further deepening reform, saying the modernization drive of the world’s second-largest economy is of global significance.

The resolution was adopted at the third plenary session of the 20th Central Committee of the Communist Party of China, which was held from July 15 to 18 in Beijing. The communique from the plenum announced the adoption of the resolution.

Hussain bin Ibrahim Al Hammadi, ambassador of the United Arab Emirates to China, commended the resolution, saying the document highlights China’s willingness to leverage its enormous market to bolster capacity for openness, expand collaborations with others, and refine mechanisms for high-quality cooperation within the framework of the Belt and Road Initiative.

In China, reform and opening-up have unlocked the potential of its people, resulting in notable economic and social transformations, he said.

“China’s modernization endeavors align with the UAE’s agenda for 2030, both of which are focused on advancing sustainable development. I hold an optimistic outlook on China’s economic future, expecting continued robust growth, which will pave the way for more cooperation that will benefit both our nations and the global economy,” he said.

Mehmood Ul Hassan Khan, president of the Pak-China Corridor of Knowledge and executive director of the Center for South Asia and International Studies, said, “The communique of the third plenum of the 20th CPC Central Committee shows a holistic and comprehensive policy agenda, covering all aspects of robust economic development, along with further support for new quality productive forces, which is a good omen for (China’s) economic stability, sustainability, diversification and modernization.”

“The communique stands for further liberalization of the economy and policy guidance, which will ultimately foster more development and social productivity. It also guarantees social justice and equality by supporting people-centric policies. All of these convey the message of constructive policies, further opening-up, and international cooperation,” he said.

He pointed out that keen interest in further investing in China shows that regional and global communities welcome the outcome of the third plenum.

“The long-term stability and vast growth potential of the world’s second-largest economy disseminate the message of reliability, productivity and positivity. China’s institutional opening-up and the development of new quality productive forces will definitely create more opportunities for the entire world, benefiting not only the Global South but also the Global North,” he said.

Jasna Plevnik, president of the Geoeconomic Forum, a think tank in Croatia, said: “The communique is also about better understanding each other globally. It observes relations among countries in a profound way. That is why the communique attracted a lot of attention in Europe, and globally.”

“China, as the world’s second-largest economy, has the power to significantly affect the future course and stability of the world order. Though faced with an international situation full of chaos, noncooperation, and underdevelopment trends, China’s commitment to building an equal and orderly multipolar world emphasizes that it will not retreat from universally beneficial and inclusive economic globalization and will enhance regional opening,” said Plevnik.

She added that the third plenum has given people the hope that the world can be better.

James Chin, professor of Asian Studies at the University of Tasmania in Australia, said Beijing’s quest to promote new quality productive forces, apart from its drive for Chinese modernization, can serve as a countermeasure to negative moves by some that aim to suppress China’s growth.

Analysts said further deepening reform and opening-up to build

Chinese modernization will create more opportunities for joint development for the rest of the world and offer valuable experiences.

This was stressed by the third plenary session of the 20th Communist Party of China Central Committee, which also adopted a resolution on further deepening reform comprehensively to advance Chinese modernization.

“The thorough and scientific resolution coming out of the latest plenum showed that once again China’s process of reform and opening-up is constant,” said Stephen Perry, honorary president of The 48 Group Club, a London-based nonprofit organization.

Charles Onunaiju, director of the Centre for China Studies in Abuja, Nigeria, said deepened reform will maintain the momentum of China’s economic growth for high-quality development and is a boon to global recovery, where it is commonly understood that China is playing and will continue to play a pivotal role and offer opportunities for others.

Describing opening-up as a “defining feature of Chinese modernization”, the communique said that the Party will steadily expand institutional opening-up, deepen foreign trade structural reform, and refine the mechanisms for high-quality cooperation under the Belt and Road Initiative.

Perry said that facing growing protectionism in the external environment, “the emphasis on opening-up in the resolution means that China will continue to modernize and do business with those people who want to do business with them”.

“China’s leaders know where they’re going, and where they’re going to work best. China is now doing this by creating a modern society, new innovative sciences, and other things beyond the achievement of any other country. At the end of it, it’s to create a world where everybody can sit at the table together,” Perry said.

Henry Chan, a visiting distinguished senior fellow at the Cambodian Center for Regional Studies, told China Daily, “Reaffirming the commitment to stay open under the current less-than-benign international geopolitical environment highlights the Chinese realization of the value of opening-up.”

Mher Sahakyan, founder and director of the China-Eurasia Council for Political and Strategic Research in Armenia, said considering China’s experience, Asian countries can pay more attention to developing transport infrastructure and linking to global supply chains, and developing their universities and high-tech production capabilities.

Market observers and business executives said China’s continuous reform measures and high-level opening-up will inject fresh momentum into its economic growth, creating more opportunities for multinational corporations to invest and thrive in the country.

They added that China’s accelerated cultivation of new quality productive forces, along with its industrial transformation and upgrading, will further facilitate trade and investment globalization, and make global businesses profitable in the country.

Their comments came on July 21 as China vowed to deepen reform for better management of foreign investment by publishing the full text of the “Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization.”

The resolution said China will expand the catalog of industries encouraging foreign investment and reasonably reduce the items on the negative list for foreign investment access.

Chen Wenling, chief economist at the Beijing-based China Center for International Economic Exchanges, said China’s new round of economic reforms will effectively curb the protectionist behavior of some local governments, consolidate the global supply chain system, and foster closer synergy between foreign investment and the country’s economic development.

Denis Depoux, global managing director at market consultancy Roland Berger, said the reforms in China’s economic sector and the development of its new quality productive forces aim to enhance productivity through innovation.

“This, in turn, will drive higher domestic consumption and stimulate further economic growth,” Depoux said.

Zhang Chundi, vice-president for China at Decathlon, said the French sporting goods manufacturer and retailer plans to open 20 to 30 new stores in China in each of the next two years.

As one of the few markets globally that are proficient in manufacturing, logistics, product design, and retail, China currently accounts for 44 percent of Decathlon’s global business volume.

“China’s consistent opening-up measures have brought multiple benefits to foreign companies,” said Zhang, adding that this not only provides wider market access but also helps simplify administrative procedures and improve service efficiency.

Mohammed Al Ajlan, chairman of the Saudi-Chinese Business Council, said that China is making substantial efforts to help companies, especially small and medium-sized manufacturers, achieve effective industrial upgrades and transformation.

By enhancing the high-end, intelligent, and green aspects of the manufacturing industrial chains across the country, these efforts will offer significant opportunities to global investors, he said.

Oliver Giersberg, senior vice-president and chief operations officer for China at BSH Home Appliances Group, a German manufacturer with 11,000 employees in the country, said that China’s overall environment has fueled the company’s creativity and innovation, boosting its development globally.

Amid China’s vigorous push for innovation, Giersberg noted that the country’s fast-growing digitalization and artificial intelligence sectors closely align with the company’s growth strategy. “Now, more than ever, we are eager to leverage these factors to achieve global success,” he added.

China saw 26,870 new foreign-invested enterprises established in the first half of the year, marking a 14.2 percent year-on-year increase, Ministry of Commerce data showed.

On July 17, the ministry emphasized that it will continue to promote high-level opening-up and improve the business environment, ensuring equal treatment for domestic and foreign companies.

Zhong Nan in Beijing and Yang Ran in Beijing contributed to this story.

Contact the writers at vivienxu@chinadailyapac.com