Overseas companies hail expanded opening-up

By XU WEI | China Daily | Updated:Jan 7, 2021

Renewed commitments

"We appreciate China's commitment to multilateralism and its \r\ncontinued opening-up to more foreign trade and investment. China is now a\r\n very big factory for the whole world, and if it maintains this \r\ndirection, the whole world will benefit," said Martin Mueller, chairman of the Swiss Chinese Chamber of Commerce.

He added that the chamber welcomes every step taken toward opening-up\r\n and leveling the playing field for foreign businesses in China.

"There were important improvements over the past year and we hope this can continue in coming years," he said.

Martin Lockett, dean of Nottingham University Business School China, \r\nsaid, "Both Shenzhen and Pudong exemplify the policy of 'dual \r\ncirculation'-of simultaneous engagement with the domestic economy and \r\nwith the world."

In May, China proposed a new development pattern, with domestic \r\ncirculation as the mainstay and domestic and international circulation \r\nreinforcing each other.

Lockett said, "The challenges are how to reproduce the strengths of \r\nShenzhen and Shanghai in other parts of China, and how these two cities \r\ncan reach world-class levels of innovation comparable with leading \r\nregions in countries like the United States and Germany."

Widened access

The blueprint adopted by the Communist Party of China Central \r\nCommittee for the 14th Five-Year Plan (2021-25) pledged to implement \r\nopening-up policies with greater scope and more depth. Steps to open up \r\nthe services sector will be taken in an orderly manner and two-way \r\nopening-up promoted in the financial sector.

On Dec 23, a report issued by the World Bank highlighted the \r\nsignificance of opening up the Chinese market, particularly the services\r\n sector, which "would create more competition and facilitate the \r\nexchange of knowledge and technologies".

Mueller said he applauded China's plan to open up its services \r\nsector, as foreign companies in this field are eagerly waiting \r\nopportunities to further tap the country's market.

"All services companies from Switzerland will be more than happy to \r\nexplore the market in China, either through the form of joint ventures \r\nor on their own," he said.

Lockett also highlighted the significance of a more open services sector to China.

"This sector will be very important to China's development, both in \r\nitself and because high-level services enable manufacturing and other \r\nsectors to perform better. Opening up services will not only grow this \r\nsector, but also improve manufacturing and overall high-quality economic\r\n development," he said.

Foreign businesses

In a research note, Oxford Economics said it believed China would \r\ncontinue to take measures to open up its economy and financial sector to\r\n the outside world this year.

"Building on substantial steps in 2020, we expect more movement on \r\nlowering import tariffs and raising or removing foreign ownership caps \r\nand capital flow quotas," the note said.

Wu, the researcher, said this would be beneficial in attracting \r\nforeign investment to areas other than the financial and auto sectors.

"In particular, opening up the services sector, including insurance, \r\ntransportation, infrastructure and construction, could yield great \r\nbenefits to both China and foreign investors," he said.

Wu added that China's manufacturing remains fundamentally competitive\r\n in many sectors and its market is still a draw for foreign companies, \r\neven though some may move parts of their production processes elsewhere \r\nin Asia.

"The sheer size of productive labor and sophisticated local supply \r\nchains within China are difficult for others to replace," he said.

"With rising household incomes and the expansion of the middle-income\r\n group, foreign companies will continue to find it attractive to stay in\r\n China and serve its massive market."

< 1 2

copyright © Shanghai Municipal Commission of Commerce. All rights reserved. Presented by China Daily. 沪ICP备2021016245号-2