context: While the US and Europe tighten trade barriers, the PRC has stepped up opening in some areas; cutting average tariffs, shortening its ‘negative list’ for foreign investors and setting up duty-free zones in Hainan, Shenzhen and other cities. Beijing has also implemented the Regional Comprehensive Economic Partnership and is seeking membership at the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Digital Economy Partnership Agreement trade pacts. This open-door streak could bolster Beijing's influence in future trade rules, not least in digital trade and green manufacturing.
Wei Jianguo 魏建国 China Centre for International Economic Exchanges expert attended the Hangzhou launch of Zheng Yongnian 郑永年 Chinese University of Hong Kong (Shenzhen) School of Public Policy dean’s book ‘on unilateral opening’. Wei stressed that ‘the PRC’s unilateral opening is a miracle in modern world history’
- three reasons this ‘miracle’ matters
- breaking the convention of globalisation underpinned by ‘reciprocal treament’
- PRC tariffs cut from 15.3 to 7.4 percent
- foreign-investment entry rules eased
- free-trade zones and ports established
- cumulative FDI attracted US$3.3 tn
- amid rising unilateralism and decoupling, the PRC’s unilateral opening offers certainty for globalisation
- inheriting and elevating the PRC’s long tradition of openness
- Silk Road, Zheng He's voyages and reform-and-opening show enduring inclusiveness and connectivity
- today’s unilateral opening hailed as ‘self-driven globalisation’
- it is not a passive response to foreign pressure
- demonstrates strategic confidence in tackling challenges through openness
- providing a new model for global governance
- opening a vast market moves beyond zero-sum logic, drives incremental win-wins along regional value chains
- initiatives such as co-building the Belt and Road and advancing RCEP (Regional Comprehensive Economic Partnership) blend unilateral openness with multilateral consensus
- on climate, energy and poverty reduction, the PRC’s open stance adds certainty to the supply of global public goods
- breaking the convention of globalisation underpinned by ‘reciprocal treament’
- three directions for future upgrading
- from ‘resource driven’ to ‘rule setting’
- deepen institutional opening
- establish PRC standards in the digital economy, green trade, 5G and robotics
- from ‘economic-and-trade openness’ to ‘civilisational dialogue’
- expand cultural exchanges
- open the services sector further
- ease external concerns about the so-called ‘PRC threat’
- from ‘aligning with international rules’ to ‘offering PRC solutions’
- dock with RCEP, Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Digital Economy Partnership Agreement and provide PRC input and plans
- contribute more inclusive and equitable institutional designs to global governance
- from ‘resource driven’ to ‘rule setting’