Widening Doors
Higher-level opening up is taking shape
Zhang Linchao, a 29-year-old piano teacher, left his studio in Beijing to travel to Shanghai with one specific goal in mind. The first China International Import Expo (CIIE), which opened in Shanghai on November 5, attracted a large number of attendees eager to see the numerous novel exhibits. Zhang was especially interested in the Steinway & Sons piano on exhibit which can play over 3,000 pieces of classical music automatically.
“We are working on smart pianos to teach students in a more convenient and efficient way. I hope this visit can bring some inspiration to our products for it is really a good chance to learn about advanced international products,” Zhang told Beijing Review.
Following the just concluded 124th Canton Fair, China’s oldest and largest trade fair that has been held every spring and autumn since 1957 and facilitates domestic enterprises going global, the CIIE further showcased China’s efforts to widen opening up to share its development opportunities with the world, better meet domestic consumer demands and pursue industrial upgrading.
Over the past 40 years of reform and opening up, China has been committed to opening its door toward the global stage. Today, as the second largest economy in the world, the country resolves to maintain its status as a leading global trader despite the uncertainties caused by protectionism and trade tensions which have cast a shadow on global trade.
Prominent efforts
“China’s previous policies were mainly launched to encourage exports and increase domestic employment and income, while boosting imports is a win-win move for both China and the rest of the world to share the fruits of China’s development and its vast market,” said Xu Hongcai, Deputy Chief Economist of the China Center for International Economic Exchanges.
The country is seeking higher- level opening up by boosting both inflow and outflow, improving the domestic business environment and furthering international cooperation. Once a global factory, China is now on track to become a major manufacturing and consumer power with more accessible markets.
In fact, China’s imports have grown exponentially over the past 40 years. Official data show that China’s goods imports increased from 18.7 billion yuan ($2.7 billion) in 1978 to 12.5 trillion yuan ($1.8 trillion) in 2017, with an average annual growth rate of 18.1 percent. Meanwhile, the country’s service imports also saw an average annual growth rate of 16.8 percent from 1978 to 2017. China is now the world’s second largest goods and services importer.
“China’s economic growth and widening domestic market have increased the importance of its imports,” said Dong Yan, a research fellow with the Chinese Academy of Social Sciences. According to Dong, China needs to open itself wider based on its 40year experience and boost imports and exports in a dual-pronged manner to achieve higher-level opening up.
As part of its efforts to boost imports, China has strengthened its efforts to cut tariffs, facilitate customs clearance and meet growing domestic demands. Tariffs on a variety of goods closely related to consumers’ daily life have been lowered. In terms of agricultural imports, tariffs on wines from Georgia and Chile which ranged from 14 to 30 percent have been reduced to zero. Import tariffs on manufacturing products such as certain Swiss watches have been halved.
Zhao Ping, an official with the China Council for the Promotion of International Trade, said that improving imports can help meet Chinese consumer demands, since quality-first concepts and increasingly diversified demands from the expanding middle -income group have posed high requirements on domestic products and services. China needs to improve its imports to propel consumption upgrading and boost domestic demand.
“Apart from satisfying people’s demands, improving imports can also drive industrial restructuring and upgrading in China, since a more open market can encourage the domestic service industry to seek transformation amid rising competition and raise the capacities of goods and services supplies. It