China's High-Level Opening Fuels Quality Development into the Future

The Evolution of China's Development Strategy

In recent times, China has intensified its commitment towards creating a high-quality development environment through high-level openings. This strategic vision was prominently articulated by President Xi Jinping during his visits to Hainan and Guangdong provinces. With the 14th Five-Year Plan nearing completion and preparations underway for the 15th Five-Year Plan, the message is clear: openness remains essential for China’s modernization efforts.

Hainan: Gateway to a New Era

The inauguration of special customs operations at the Hainan Free Trade Port on December 18 stands as a milestone in China’s ongoing campaign for high-level openness. This initiative is positioned as a key contribution to fostering an open global economy. Xi Jinping highlighted that the development of Hainan is integral to both its local growth and to broader national goals. Plans to enhance institutional openness, reorganize talent acquisition systems, and implement administrative reforms aim to cultivate a business ecosystem grounded in market principles and international standards.

Since 2018, Hainan has attracted over 70,000 highly-skilled professionals and enacted more than 80 local laws to enhance its business climate. Currently, tourism, modern services, high technology, and tropical agriculture account for approximately 70% of its GDP. Moreover, Hainan’s developments are expected to bolster international trade, exemplified by the new Yangpu-Chancay maritime route which expedites aquatic trade between South America and China, demonstrating the port's role in global logistics and commerce.

According to Kuang Xianming, Vice President of the Chinese Institute for Reform and Development, these customs enhancements will position Hainan as a pivotal center for China-ASEAN collaboration.

Guangdong: A Model for Reform and Openness

In his first visit following the plenary session of the Communist Party, Xi Jinping chose Guangdong to showcase its long-standing role as a leader in reform and opening-up. He emphasized Guangdong's responsibility in shaping the 15th Five-Year Plan for the nation’s economic and societal advancement. The province is urged to drive comprehensive reforms and cultivate high-quality development, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, which is seen as crucial for fostering innovation and modern industrial systems with international competitiveness.

Guangdong's economic performance supports this vision. In 2024, the province recorded foreign trade reaching 9.11 trillion yuan ($1.3 trillion), marking a 9.8% increase and representing around 39% of China’s overall trade growth. Between January and September of the same year, 24,000 new foreign-invested enterprises were established, reflecting a 33.7% growth compared to the previous year, bringing the total to over 360,000 companies with more than $600 billion in foreign capital utilized.

Highlighting the province's attractiveness to investors, major global companies like BASF, ExxonMobil, and Tesla signed 1,933 projects worth 2.26 trillion yuan at the 2024 Global Investment Promotion Conference for the Greater Bay Area.

The Future is Bright for China's Reform and Opening

As China approaches the 15th Five-Year Plan, it reinforces the view that reform and opening are not merely historical policies but enduring catalysts for its future. The steps being taken in Hainan and Guangdong not only signify economic aspirations but also illustrate a broader commitment to establishing a connected and competitive economic landscape, enhancing ties both locally and internationally.

China’s narrative of high-level opening transcends the confines of national borders, presenting itself as a vital player in the overarching narrative of global trade and cooperation. The trajectory set by these initiatives promises significant evolutions in how China engages with the world in the coming years.