Further opening up of manufacturing to promote inclusive global growth

single tree cannot block the chilly wind,” goes a European saying. Similarly, a Chinese proverb says: “Many hands make light work.” It is becoming a global consensus to build a community of shared future for humankind based on openness and win-win cooperation.

This year 2018 is the first year after the 19th National Congress of the Communist Party of China, and also marks the 40th anniversary of China’s reform and opening-up.

Throughout the past 40 years, China’s manufacturing industry has remained committed to the philosophy of open development, the development path of “bringing in” and “going global”, and opening up both at multilateral and regional levels. Therefore, the manufacturing sector has gradually shifted from policy-oriented to institutional opening-up, becoming an important part of the overall national opening-up process for win-win cooperation.

The past four decades also have witnessed profound changes in China. As far as manufacturing is concerned, China has become the leading country in the world in terms of production, export, foreign investment utilization and overseas investment. And China’s manufacturing sector is gradually integrating into the global industry division of labor, contributing significantly to global economic growth.

In 2017, China’s total import and export of goods reached $4.1 trillion, which is 783 times of that in 1978. For the manufacturing sector, the annual actual utilization of foreign capital reached $33.5 billion and direct overseas investment amounted to $120.1 billion, with mutually beneficial cooperation with foreign countries expanding in scope, level and approach. A framework of all-round opening-up of the manufacturing sector is also taking shape and continues to develop. sector is becoming multi-dimensional, multi-level and wide-ranging. Since China established its first special economic zone in Shenzhen in 1980, capital, technologies and talents from different parts of the world have been attracted by the city, and later by the entire Chinese market of 9.6 million square kilometers.

As of today, many of the world’s top 500 companies, such as Volkswagen, Siemens, Apple, Intel, Samsung, Toyota and Tata, have all established their presence across the eastern, central and western regions of China. Most of those companies have enjoyed good investment returns. In recent years, while continuing with the “bringing-in” strategy, the Chinese government has also encouraged domestic enterprises to “go global”.

Driven by the Belt and Road Initiative, Chinese manufacturing companies are expanding their overseas investment to other regions besides Europe, North America and Southeast Asia, which have been their focus for decades. Many companies are exploring investment opportunities in countries along the Belt and Road and seeking cooperation on international capacity and equipment manufacturing.

China has signed relevant documents with more than 30 countries, including Kazakhstan and Malaysia, on international capacity cooperation for synergizing development plans and facilitating cooperative projects. As a result, a batch of major projects on iron and steel, non-ferrous metals, construction materials and other areas are being smoothly implemented to meet the urgent needs of the countries along the Belt and Road, and a number of industrial parks have been established overseas. These cooperation projects have boosted the industrialization and modernization process of the concerned countries.

Miao Wei