China’s Central Economic Work Conference, held in Beijing from December 11 to 12, underscored the importance of expanding high-level opening-up to stabilize foreign trade and attract foreign investment. Experts noted that the series of measures proposed at the meeting align with the country’s evolving focus and reflect the rising importance of the digital economy and trade in the new global landscape.
Steady Expansion of Institutional Opening-Up
The conference emphasized a gradual expansion of autonomous and unilateral opening-up, the steady growth of institutional opening-up, and the enhancement of Free Trade Zones (FTZs) to improve quality and efficiency. It also outlined plans to expedite the implementation of core policies in the Hainan Free Trade Port (FTP), accelerating its opening-up and reform efforts.
“We are expecting significant strides in high-level opening-up next year,” said Wei Jianguo, former vice minister of commerce and current vice-chairman and executive deputy director of the China Center for International Economic Exchanges, in an interview with China Securities Journal.
He highlighted that the notion of “gradual expansion of autonomous and unilateral opening” signifies China’s intent to align its trade practices with international high-standard economic and trade rules, in consideration of its own modernization pace.
Regarding specific policies for opening-up, Wang Qing, chief macro analyst at Dongfang Jincheng, said that by 2025, China would fast-track its progress toward joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement, aiming to deepen foreign investment facilitation reforms.
“The development of FTZs and the Hainan FTP is a vital part of China’s opening-up,” said Wei. “Hainan, with its focus on trade and investment liberalization and facilitation, serves as a ‘model’ for high-level opening-up.”
The FTZs have not only provided platforms for international trade but also served as testing grounds for reforms, with broader policy reforms expected as Hainan prepares for its full closure in 2025.
Enhancing New Drivers and Advantages for Foreign Trade
The conference also urged the active development of service trade, green trade, and digital trade – areas that are becoming crucial as China advances its trade transformation.
Deng Yu, a senior researcher at the Shanghai Finance and Development Laboratory, noted in an article that while China continues to expand its manufacturing sector, it is accelerating opening-up in services, service trade, and other sectors.
Despite geopolitical instability and global trade challenges, most countries and regions remain committed to free trade, market economies, and open policies. Deng pointed out that China’s efforts in opening-up have strengthened foreign investors’ confidence in its market.
In 2023, China attracted approximately $163.3 billion in foreign direct investment (FDI), maintaining its position as the world’s second-largest FDI recipient, official data showed. The proportion of FDI in high-tech industries rose to 37.3 percent, up 1.2 percentage points from 2022, marking a historic high.
Wen Bin, chief economist at China Minsheng Bank, emphasized in an interview with Dazhong Daily that the digital economy and green economy are key drivers of global growth and central to China’s current foreign trade transformation. New business models, such as cross-border e-commerce, are playing an increasingly prominent role in reshaping foreign trade dynamics.
Overall, Deng concluded that China’s unwavering commitment to high-level opening-up will benefit more countries and regions, driven by its vast market potential and focus on high-quality economic development.
