WHILE showcasing openness, modernization, innovation, international cooperation, economic globalization through constant and continued structural reforms, the Third Plenum of the 20th CPC Central Committee’s Communiqué has lambasted the Western notions of decoupling, delinking, over-capacity and China’s Collapse theories. Moreover, their fabricated sanctions syndrome on the plea of national security has also been dashed to the ground. Thus China’s philosophy of openness operating at a civilizational level, rather than merely to enhance competitiveness has become a shining star.
It seems that openness and development are a continuation of the tradition of inclusiveness and integration of the Chinese nation. In recent years, through meaningful negotiations with all main global business and trade stakeholders Chinese government have completed a Comprehensive Agreement on Investment (CAI) with the European Union and applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA) which vividly reflects it strong desire of further opening-up.
Evidently, from systemic reform to institutional openness, China is integrating its efforts to support high international economic and trade standards and actively participating in international economic and trade rule negotiations. Undoubtedly, the BRI and the China International Import Expo (CIIE) and future planning to hold the China International Fair for Trade in Services (CIFTIS) and the China International Consumer Products Expo (CICPE) have clearly illustrated its vision for trade liberalization and economic globalization. Thus Chins is moving towards further high-level opening-up, which has shifted its focus from passive to proactive openness, from open development to development-oriented openness and from opening up to promote reform to reforming to promote openness.
Recently, several international organizations, including the International Monetary Fund and the World Bank, have concurrently raised their forecasts for China’s economic growth up to 5 percent. In the first half of the year, China’s economy grew by 5 percent year-on-year, showcasing a stable economic foundation. It seems that China’s quality of economic development is also improving, with investments in both high-tech manufacturing and high-tech services experiencing double-digit growth. On a global scale, China is also among the fastest growing economies. Interestingly, more multinational corporations are turning their attention to China because of its continued stable economic growth as well as deepening reform and opening-up which is a good omen.
Unfortunately, Washington’s political rhetoric, a rupture in the China-U.S. economic relationship would result in mutual losses, disrupt global supply chains and stall economic recovery at a time when the world can least afford it. So economic wisdom and political sanity should prevail so that dreams of greater socio-economic integration and trans-regional connectivity may be achieved. The 60 points final resolution is market oriented strategic planning which will play a decisive role in resource allocation through legislation to improve conditions for the private sector. The detailed plans to forge new productive forces, promote revolutionary breakthroughs in technology, innovative allocation of production factors and in-depth industrial transformation and upgrading would further enhance China’s role in the regional as well as world economy.
Its resolution of further fiscal and financial reforms, boosting affordable housing, implementing employment-first policy, and improving job opportunities for young people and the standard of living for the elderly is an ideal combination of the Chinese Socialism propelling people’s centric policies and preferring people over corporate profits. Therefore, further deepening reform will guide efforts in tapping the potential of the world’s second-largest economy, offering a sense of continuity and certainty, and inject fresh growth momentum into global economic growth. It is a holistic development policy which outlines comprehensive reform guidelines across various key areas including the economy, legal system, culture, education and others for advancing Chinese modernization.
It is predicted that new quality productive forces driven by technological innovation will provide continuous impetus to Chinese macro-economy and will further tap the potential through institutional reforms such as intensifying efforts in building a unified national market and fostering the market economy to ensure prosperity in the next five to 10 years and beyond. The new blueprint will foster trust and confidence both at home and abroad. The new rules, regulations, management and standards and institutional innovations should also make improvements to achieve the high levels of opening-up and modernization. China is the “world’s factory,” its massive industrial transformation and huge upgradation is significant for the world as it will inject new growth energy into the global economy in terms of digitalization, smart technologies and green development.
Prominence of the Global South, new productive forces and positivity of China to take a leading role in global governance against the backdrop of the fast-changing geopolitical landscape, intensified global economic and financial fragmentation and a shift in trade and cross-border investment flows would create new and sustainable simulation for the recoveries of regional and world economies. In summary, China’s economic miracle, BRI and CPEC have become a real inspiration for the developing and developed countries to adopt similar policies and approaches. It will encourage inclusive economic growth and development and to support common development and prosperity for all countries in the global village.
The setting up of foreign companies R&D centers in China and engaging in technological research and product innovation has become a futuristic development. Apple has R&D centers in Beijing, Shanghai, Shenzhen and Suzhou, BMW has established its largest global production base and the largest R&D system outside Germany in China, BASF’s innovation campus in Shanghai is the largest in the Asia-Pacific region and the second-largest globally showing China’s leading role in qualitative industrialization and green transformation. The Western sponsored so-called China’s Collapse Theory has become an absolute flop. Conversely, China has maintained its position as the world’s largest trading nation in goods for seven consecutive years. In the first half of 2024, the export value of products like automobiles, ships and integrated circuits increased by 22.2 percent, 91.1 percent, and 25.6 percent year-on-year, respectively.
China’s trade with partner countries under the BRI increased by 7.2 percent year-on-year in the first half of 2024. The number of China Railway Express freight trains surpassed the target of 10,000, 19 days ahead of the same target period in the previous year, with a total cargo volume increase of 11%. China offers visa-free entry to an increasing number of countries. In the first half of 2024, over 14 million foreigners entered China, demolishing notions of decoupling, delinking and overcapacity.
—The writer is President, Pak-China Corridor of Knowledge, Executive Director, CSAIS, regional expert: China, CPEC & BRI.
