The 14th Five-Year Plan clearly states that we will continue to deepen opening-up based on the flow of goods and factors of production, steadily expand institutional opening-up based on rules, regulations, management and standards, and basically form a new system of an open economy of higher standards. This is a strategic choice made by the CPC Central Committee in taking into account the overall strategy for the great rejuvenation of the Chinese nation and the profound changes unseen in the world. It is an important measure to keep pace with the new development stage, apply the new development philosophy, foster a new development pattern, and promote high-quality development.

A high level of opening-up is an inherent requirement for high-quality development

Since reform and opening up, China’s overall national strength has risen by a large margin, the competitiveness of its open economy has increased significantly, and its factor endowment, industrial structure, and scientific and technological innovation have increased significantly. This calls for the establishment of a new pattern and new system of opening up that are compatible with the stage of high-quality development and factor endowment. In particular, China’s economic development still faces constraints such as weak links in key core technologies, dependence on import of mineral and energy resources, replacement of old growth drivers, and prominent structural problems. Coupled with the triple pressures of shrinking demand, supply shock, and weakening expectations, we urgently need to build a new pattern of unimpeded, double-cycle development through high-level opening-up.

FBM232 P0926GW

FBM232 P0926GW

FBM232 P0926GW

In addition, China is facing increasing uncertainties and instability in the international environment, and major risks and challenges are increasing day by day. This calls for a peaceful and stable external environment for high-quality development through high-level opening-up to seek advantages and avoid disadvantages. First, high-standard international economic and trade rules have been established, and developed countries are still the dominant players in these rules. As the integration of global industrial chain, supply chain and value chain and the booming digital economy accelerate the innovation and transformation of international economic and trade rules, high-standard free trade agreements have been formed, represented by the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP), the US-Mexico-Canada Agreement (USMCA) and the EU-Japan Economic Partnership Agreement (EPA). Its basic feature is that border rules are developing into post-border rules, and free and open borders are closely combined with fair and open borders. Its purpose is to create a highly market-oriented, law-based and international business environment. Second, the general trend of interdependence of the global industrial chain and supply chain has not changed, but under the influence of multiple factors such as the development of digital technology and geopolitics, the international industrial pattern will enter a new round of adjustment and restructuring. The localization, nearshore, regional and decentralized restructuring of the global industrial chain and supply chain system is accelerating, and the maintenance of supply chain security has become a top priority. Third, the new technological revolution and the new industrial revolution led by digital technologies are accelerating, and digital economy and digital trade are rising strongly. While driving the innovative development of global industry, trade and investment, it is also urgent to build a system of rules for global digital governance.

As we enter a new stage of development, high-quality opening-up will be guided by institutional opening-up. It will usher in a new pattern of all-round opening-up through wider, wider and deeper opening up. We will continue to improve the new system of an open economy featuring mutual benefit, diversity, balance, safety and efficiency, promote the transformation of an open economy from one based on scale and speed to one based on quality and efficiency, and achieve high-quality economic development.