How China's High Standards of Openness Propel Quality Development

The Role of Openness in China's Development

In recent months, China has showcased its strategic priorities regarding high standards of openness, particularly through initiatives led by President Xi Jinping during his visits to Hainan and Guangdong provinces. These initiatives underscore China's commitment to modernize and enhance its economic landscape, positioning openness at the heart of this transformation.

Strategic Initiatives in Hainan

Hainan, set to become a hub for global trade, recently launched its Free Trade Port (FTP), which aims to facilitate special customs operations across the province. This move, deemed a significant milestone in China's efforts to expand high-standard openness, is expected to attract foreign investments and reshape Hainan's economic identity. During the FTP's launch, Xi emphasized that this port would not only boost Hainan's growth but also contribute to a broader paradigm of development across China.

Hainan has made remarkable strides since 2018, attracting over 70,000 high-level professionals and implementing more than 80 local laws to improve its business environment. The province's economy is rapidly diversifying, with tourism, modern services, high technology, and tropical agriculture now accounting for nearly 70% of its GDP.

Moreover, Hainan's openness not only benefits its local economy but also enhances global trade routes. The new shipping lane from Yangpu to Changkai allows for quicker exports of tilapia to South America, while Peruvian avocados can now reach China fresher and at lower costs. These advancements exemplify Hainan's strategic positioning in international trade, solidifying its role as a center for cooperation between China and ASEAN countries.

Guangdong: Pioneer of Reform

Guangdong, known for its reformative spirit, has also played a crucial role in China's narrative of high-standard openness. During his inspection of the province, President Xi urged Guangdong to take the lead in furthering reforms and enhancing openness to foster high-quality development within the Greater Bay Area (GBA) of Guangdong-Hong Kong-Macau.

He called for the province to nurture new quality productive forces, integrate technological innovations with industrial advancements, and build a modern industrial system that can compete on a global scale. With an external trade volume of 9.11 trillion yuan in 2024, accounting for nearly 39% of China's overall trade growth, Guangdong exemplifies a thriving economy fueled by its commitment to high standards of openness.

Throughout 2024, about 24,000 new foreign-funded enterprises were established in Guangdong, marking a growth of 33.7% from the previous year. The total number of foreign-funded companies now exceeds 360,000, with foreign capital surpassing 600 billion USD. Such statistics highlight the immense potential of the GBA in attracting global investors and fostering a vibrant economic environment.

At the 2024 Global Investment Attraction Conference, major international firms like BASF, ExxonMobil, and Tesla signed contracts valued at 2.26 trillion yuan, demonstrating the region's appeal as an investment hotspot. These projects reflect Guangdong's narrative as a forerunner in economic reform and a beacon of high-standard openness in China.

Conclusion

As China approaches the unveiling of its 15th Five-Year Plan, the emphasis remains on the crucial roles of reform and openness in shaping the country's future. These initiatives are not remnants of the past; rather, they are pivotal drivers for China's continued growth and modernization. The experiences of Hainan and Guangdong serve as powerful illustrations of how high standards of openness can propel economies toward high-quality development. China is setting a precedent for the rest of the world, advocating for a collaborative, transparent, and dynamic global economic environment.