context: The Third plenum of the CPC Central Committee concluded on 18 July 2024, outlining economic priorities to be realised by 2029. Against rising geopolitical tensions, managing trade risks and further reforms in 'institutional opening' were emphasised. Beijing has touted opening up as a response to decoupling, but balancing this with its rigorous security agenda could prove difficult.
The Resolution on deepening reform released by the CPC Central Committee after the Third Plenum sends two important signals, argues Wei Jianguo 魏建国 China Centre for International Economic Exchanges vice chair in an interview with Yicai, including
- building a more 'high-level' open economy 建设更高水平开放型经济新体制 is emphasised for the first time (as compared to previous proposals of 'building an open economy')
- this is a milestone for a new round of reform and opening up
- 'institutional opening' will be a central and breakthrough point for this round of reform and opening up
- an emphasis is placed on 'steady' opening
- many new suggestions are introduced for foreign trade and investment
The article summarises key developments in the Third Plenum Resolution on foreign investment
- the Resolution mentions
- deepening the reform in foreign investment and outward investment management
- equal rights and rules between domestic and foreign investment
- improving the business environment to be more market-oriented, rules-based and international
- Wei notes that
- the contents on foreign investment are extensive and comprehensive
- this is the first time the centre proposed deepening foreign investment and outward investment management reforms, and the first time to juxtapose the two together
- the decision emphasised the 'reasonable' reduction of the items on the negative list for foreign investment
- indicating that while foreign investment is to be bolstered, national industries will also be protected
- it also made clear that market liberalisation will be expanded in telecommunications, internet, education, culture and medical care in an orderly manner
- in light of the recent decline in H1 2024 foreign investment numbers, Bai Ming 白明 Ministry of Commerce Research Institute Degree Committee member notes that the fluctuation is a short-term situation
- the Third Plenum resolution focuses on long-term opening-up planning and directions
- further opening up would remain a fundamental national priority
- which would bring long-term policy benefits to foreign investment
- further opening up would remain a fundamental national priority
- the Third Plenum resolution focuses on long-term opening-up planning and directions