High-quality development remains top priority for country in new era

Last year was a challenging one for the Chinese government in many ways. Abroad, geopolitical headwinds seriously disrupted the country’s reach to international markets; at home, the private sector lost steam, the real estate market remained in dire straits, and domestic consumption appeared lackluster.

If confidence is indeed more precious than gold at such times, as some suggest, what Premier Li Qiang tried to deliver in his report on government work was extremely valuable, as it was exactly that. In spite of the pessimism surrounding the state of the Chinese economy and its near-term prospects, Premier Li struck a very different note in the Government Work Report he delivered at the opening of this year’s session of the National People’s Congress, the country’s top legislature, on Tuesday.

In the face of the unusually complex international environment and the challenging tasks of advancing reform and development and ensuring stability at home, “the main goals and tasks for economic and social development in 2023 were accomplished”, he told his audience in the Great Hall of the People. Prevention and control of the pandemic was a “major, decisive victory”, and the country not only upheld the bottom line of preventing systematic risks, but also managed 5.2 percent GDP growth, continuing to be among the best performers worldwide, he said.

Not only that, Li made the general judgment that the underlying trend of the economy maintaining its post-pandemic rebound and improving in the long term has not changed, and will not. The confidence he sought to convey comes from the assessment that the country still has conspicuous advantages — including its economic system, ultra-large market, complete industrial system, massive pool of talents and growing capacity for technological innovation.

That was why, despite the more downbeat prognoses of outside observers, the government has set a GDP growth target of “around 5 percent” for 2024. This will be no easy job considering the obvious obstacles on the way ahead, but the authorities still have a wellstocked toolbox at their disposal.

The more impressive aspect of this year’s report, however, may be about openness. This is especially important amid speculation that, even involuntarily, China may roll back the decades-old opening-up policies as tensions escalate with Western countries. But Li stressed that the country will adhere to the path of peaceful development, practice a mutually beneficial and win-win strategy of opening-up, and advocate equal and orderly multipolarization as well as economic globalization featuring universal benefits and inclusiveness.

On the economic front, Li pledged to “promote alignment with high-standard international economic and trade rules, steadily expand institutional opening-up”, and “intensify efforts to attract foreign investment”.

Further shortening the negative list for foreign investment was among the specific tactics he enumerated. “All market access restrictions on foreign investment in manufacturing will be abolished, and market access restrictions in service sectors, such as telecommunications and healthcare, will be reduced,” he promised.

Corresponding measures also include expanding the Catalogue of Encouraged Industries for Foreign Investment and encouraging foreign enterprises to reinvest in China, and improving services for foreign investors. While these may be considered technical measures to overcome present difficulties, the idea to promote negotiations over a 3.0-edition China-ASEAN Free Trade Area, as well as joining the Digital Economy Partnership Agreement and Comprehensive and Progressive Agreement for Trans-Pacific Partnership indicates the Chinese government is serious about carrying out higher-standard opening-up.

All in all, such propositions, translated into actions, should serve to effectively bolster investor confidence in the Chinese market as they will make it more foreign investment friendly, transparent and predictable.