Xi clears doubts over further reform
... Xi’s speech is in line with China’s development philosophy, and the measures introduced show the new pattern of reform and opening-up which he put forward in his report to the 19th CPC National Congress.
Editor’s note: In his keynote speech at the Boao Forum for Asia on Tuesday, President Xi Jinping vowed to safeguard economic globalization and deepen reform and opening-up. Four experts share their views with China Daily on the possible impact of the speech. Excerpts follow:
China will further open up but not due to US pressure
China will take measures to further open up to the outside world, Xi said in his highly-anticipated keynote address at the Boao Forum for Asia. But amid the escalating China-US trade conflict, some people have wrongly assumed Xi made the remarks with the Trump administration’s accusations in mind. But a review of China’s policies shows the country will deepen reform and opening-up because of its development needs, not because of any other country’s demand or coercion.
And more importantly, if the US insists on starting a trade war, China’s further opening-up policies will not apply to any US enterprises.
To people concerned about China’s development, Xi’s speech must have sounded inspiring, but not surprising, as opening-up has been a development theme for China for the past 40 years.
Actually, the measures Xi mentioned can be seen as a natural extension of previous policies and efforts. For instance, the last few years have seen the introduction of pre-establishment national treatment with a negative list for foreign capital in pilot free trade zones — while its all-round implementation, as Xi said, is only a matter of time. And in terms of IPR protection, Xi underlined in his report to the 19th National Congress of the Communist Party of China in October that China should develop an innovation-friendly culture and strengthen intellectual property rights protection.
As for the expansion of imports, China shifted its focus from exports to striking the right balance between imports and exports long ago, because the increase in imports will offer more choices to Chinese consumers and help improve their living standards, aside from giving foreign companies easier access to the Chinese market.
In other words, Xi’s speech is in line with China’s development philosophy, and the measures introduced show the new pattern of reform and openingup which he put forward in his report to the 19th CPC National Congress. These facts should be enough to make it clear the decisions were not taken under any external pressure.
Xi’s speech not only demonstrates Chinese people’s openness toward the outside world but also is a potent reply to the Trump administration’s unilateral and protectionist moves. It will also strengthen globalization, and inject much-needed confidence into the international community to build an open global economy that would benefit people across the world in the long term.
40th anniversary will usher in deeper reform
Delivering his keynote speech at the Boao Forum for Asia, President Xi Jinping elaborated the significance and changes of the four decades of reform and opening-up, and emphasized that reform and opening-up constitute China’s “second revolution” because they have not only changed China but also significantly influenced the world.
No wonder the 40th anniversary of reform and opening-up is seen as a milestone in China’s history.
As Xi’s report to the 19th National Congress of the CPC said, China’s principal contradiction has evolved into one between the unbalanced and inadequate development and people’s ever-growing needs for a better life, which is the result of China’s economic development propelled by reform and opening-up.
The success of reform and opening-up is not only embodied in economic development and the improvement of people’s livelihoods, but also in the change of China’s status in the world. And it is because of the success of reform and openingup that China has stuck to the path of socialist market economy, which integrates the advantages of socialism with market economy.
China should not follow Western market economy, because it is incompatible with China’s history and actual situation. Socialist market economy, on the other hand, enables the Chinese government to achieve high-quality development. It also helps the government to devise industrial and other policies that support infrastructure construction and other key areas related to people’s livelihoods.
Just as the Third Plenary Session of the 18th CPC Central Com- mittee pointed out, only if the relationship between the government and the market is well defined can the market play the decisive role in resource distribution and the government better perform its duties.
China’s successful development experience shows how a big developing country can rapidly transform itself into an economic powerhouse through rational development, which is China’s greatest contribution to development economics and development model.
China will deepen reform and opening-up not only to meet its domestic demand, but also as a response to the call of its trade partners. And measures such as easing market access for both domestic and foreign players, and strengthened IPR protection reflect China’s sincere efforts to build a community of shared future. To achieve success in this endeavor, China should enhance economic communication with Asian countries through channels such as the Belt and Road Initiative and other cooperation mechanisms.
Cooperation best way to build bright future for all
China will never be a threat to any country, and not try to overthrow the world order; instead it is determined to safeguard peace and order, and contribute more to global development, Xi said in his keynote speech at the Boao Forum for Asia.
China’s rapid development over the past four decades has earned the recognition of the international community as well as raised doubts among some, because a few Western powers are not ready to accept the rise of a country that has an economic model, culture and institutions different from theirs. Some Western powers, especially the United States, have even said China’s influence will have a negative impact on the world in the future.
By withdrawing from multilateral mechanisms, such as the 2015 Paris Agreement, and taking anti-globalization measures, the US is destabilizing global free trade and the world order. On the contrary, China has long adhered to regional and global cooperation mechanisms and followed international rules, with Xi reiterating at multiple forums the importance of bilateral and multilateral cooperation in trade and security, and responsible leadership in matters of global significance.
To facilitate China’s economic structural upgrading and deepen win-win cooperation with other countries and regions, as well as to strengthen globalization, Xi promised to ease access to the Chinese market, improve the investment environment, enhance IPR protection, and deepen opening-up.
A country does not have to resort to a beggar-thy-neighbor policy to achieve economic gains. Instead, through deeper cooperation, all countries can share the benefits of globalization.
Despite still being a superpower, the US has been losing its global leadership role thanks to its unilateral and selfish policies. But instead of self-introspection, it sees China’s peaceful rise as posing a threat to its global leadership.
Although the Sino-US trade conflict may eventually be resolved with the two countries striking a new balance in their relations — China increasing imports and lowering tariffs, and the US easing restrictions on the export of high-tech products — China will face more severe challenges in the future, particularly from those countries playing important roles in the post-Cold War world order. So it should be prepared to deal with such eventualities. Perhaps it can prevent such situations from arising by involving more and more countries in the Belt and Road Initiative, in order to make concerted efforts to build a community of shared future for humankind and make greater contributions to global development.
Belt and Road will clear all misunderstandings
Xi said at the Boao Forum for Asia on Tuesday that he is confident that China will deepen cooperation and resolve differences with other economies through the Belt and Road Initiative, while clearing doubts over the initiative’s intents and purposes.
There are two kinds of misunderstandings over the Belt and Road Initiative. The first is intentional and biased: Certain Western “scholars” and media outlets hype up the “China threat” theory in Western countries, and exaggerate the level of China’s competition with them to create such a misunderstanding.
The second “misunderstanding” is based on a lack of information. Many economies involved in the Belt and Road Initiative are in Central Asia and Eastern Europe with rich natural resources, such as minerals and gas and oil reserves. So some people worry that China’s influence may outbalance the West’s influence in these regions and make it inconvenient for other economies to obtain natural resources, including gas and oil.
To clear the first kind of “misunderstanding”, which actually is rumor, there is no better way than to firmly fight back. Those trying to arouse anti-Belt and Road sentiments still suffer from Cold War mentality, and they can be made to see reality only through appropriate action.
And to remove the second kind of misunderstanding, China needs to more clearly explain the purpose of the Belt and Road Initiative to convince the countries with rich resources that the initiative will yield win-win results — China buys the resources at the market price, while these countries get the funds necessary to intensify their economic development. That China co-works with these countries to help them improve their infrastructure should also be emphasized.
The Belt and Road Initiative has three obvious characteristics that distinguish it from the previous and current development plans of the West. First, the initiative is open to all — all countries can work with China under its framework.
Second, it is mutually beneficial. Both China and its partner countries benefit from the initiative.
And third, it does not come with any political conditions attached. When doing business with its partners, China has been strictly following international business rules and has never imposed any political conditions on them.
The fact that forums held in China, including the ongoing Boao Forum For Asia, have attracted so many participants from across the world is proof of the Belt and Road Initiative gaining trust. And with projects under its framework increasing, hopefully all misunderstandings over the Belt and Road Initiative will be cleared.