New opening-up welcomed by global business

China's annual two sessions of national-level legislative and political consultative meetings concluded on Sunday amid worldwide attention, especially over the official pronouncement of China's "new normal" mode of economic development, which sees the world's second largest economy undergoing slower but steady growth.

Among the various highlights of the government working report delivered by Chinese Premier Li Keqiang, many interested parties overseas focused, not surprisingly, on the announcement of "a new round of high-level opening-up" measures. 

Despite a "new normal" economic mode, China's growth rate still surpasses those of many major developed economies. The country looks set, at least in the foreseeable future, to continue shouldering the heavy burden of being the world's growth engine. As such, China's decision to "accelerate the setting up of a new open economic system" understandably attracted much attention not just domestically, but also internationally.

Ever since the onset of China's reform and opening-up, the various foreign investments and technical transfers, when combined with China's explosive economic potentials, ushered in a high-speed modernization globally unique. In this new round of opening-up, many from overseas look forward to China allowing foreign investments into more strategic sectors requiring high-tech input. 

They also wish that ratio of foreign participations and the level of foreign decision-makings in those sectors where foreign investments have long entrenched could be similarly raised. Such quasi-national treatment would provide the timely impetus for improving China's free-trade credentials above and beyond its commitments upon ascension to the World Trade Organization, thus absorbing more foreign investments with higher level of technological know-how.

Moreover, those foreigners with working experience in China also yearn for a deeper and business-friendly rule of law in the new round of opening-up. Over the years, China has successfully implemented a series of effective measures to attract foreign investments. They include one-stop approval process and the express infrastructure build-up which have since become models for other emerging economies. On that positive basis, many from overseas would like to see China strengthen its rule of law, especially in the fair, just and efficient administration of law enforcement.

The fourth plenary session of the 18th CPC Central Committee held last year adopted as its main working theme the fortifying of the rule of law, which impressed many overseas observers. Many therefore hold high expectations that this new round of opening-up will soon be pioneered by more comprehensive protection of foreign investment interests as well as stricter sanctions for intellectual property violations.

In terms of greater autonomy for the operations of foreign investments in China, the simplified and restrained "negative list" regulatory measures used in the new free trade zones constitute a positive start. And more assertive protection of intellectual property rights will only catalyze the joint Sino-foreign development of high-tech sectors with mutually beneficial interests. In addition, a more established rule of law in China will also indirectly promote new high value-added sectors, such as financial engineering and commercial arbitration, which would feel more comfortable to take root in China.

China's inbound and outbound foreign direct investments both equal around $100 billion. Many from overseas therefore hope that China's new round of opening-up will also be bidirectional. While they cheer for China's willingness to open up more of its own economic sectors, they would also like to see Chinese investments and technologies march more confidently and resourcefully overseas. China's proactive participation in overseas economic development is especially welcomed by friendly neighboring countries that look forward to upgrading the quantity and quality of their economic interactions with China.

In recent months, China has promulgated the various viable initiatives for regional economic improvements. These include the concept of linking up the region through modern maritime and continental Silk Roads, the setting up of the Asian Infrastructure Investment Bank, as well as the speeding up of the negotiation process for Asian-Pacific Free Trade Area. Countries with long-standing economic ties with China reacted positively to these potentially transformative measures.

China's new round of opening-up is equally applicable both domestically and also to those newly emerging economies which stress on trade and investment. If carefully and realistically implemented, the new opening-up could create win-win scenarios for all parties concerned. As Premier Li's working report pointed out, actively opening up will lead to proactive development. China's proactive approach in international competition depends on a large degree on leading the worldwide trend toward a global open economy that leaves no one behind.