China will further open up to the world in the coming five years to evolve its economy amid a trend of globalization, experts said Thursday.
Opening-up was highlighted along with innovation, coordinated and green development as well as sharing to fulfill the economic goals in the "Proposal on Formulating the Thirteenth Five-year Plan (2016-2020) on National Economic and Social Development," which was adopted at the Fifth Session of the 18th Communist Party of China (CPC) Central Committee ended on Oct. 29.
OPENING UP MORE SECTORS
The proposal said China will accelerate its opening up of the capital market. China will continue to support the inclusion of the RMB in the IMF Special Drawing Right basket and push ahead with capital account liberalization and the internationalization of RMB.
China will gradually make the Chinese yuan convertible for capital accounts and further expand the investment quota for qualified foreign institutional investors. The negative list model, which states sectors and businesses that are off limits to foreign investment, will be adopted nationwide in the next five years.
This will help ensure the protection of foreign investors' rights and better allocate their money. "China is expected to adopt the negative list throughout the country as early as 2018 following a two-year test run in Shanghai, Tianjin city and Guangdong and Fujian provinces, where the country's four free trade zones(FTZs) lie," said Xu Shanchang, director of the Comprehensive Reform of Economic System Department of the National Development and Reform Commission.
The proposal also pledged further opening-up of the service sector, including banking, insurance, securities and nursing homes, to foreign investment. Mutual agreements exempting visa requirements and bilateral investment treaties will be promoted with more countries.
"China has made the capital Beijing to be the first pilot city to further opening up the sectors including technology, finance, culture, education, healthcare, commerce and tourism," according to the expert. "The booming service industry provided fresh opportunities for foreign investors as China's traditional manufacturing sector is bucking strong headwind," said Ministry of Commerce economist Bai Ming.
MORE PLACES
China is considering plans to open up more places in its middle and western regions via the "Belt and Road" initiative, experts said. China will continue to promote the "Belt and Road" initiative through cooperation with countries and regions along the route, and participate in global industrial and equipment manufacturing cooperation, according to the proposal.
"As an open initiative, the Belt and Road is originated from the ancient Silk Road, but with wider coverage. It connects East Asia economic circle in the east end with the European economic circle in the west, while passing through Africa to form into a loop-like route," said Bai.
The coastal regions have summed up rich experiences and benefited the most in implementing China's opening-up policy in the past three decades. Now, it is time for the middle and west regions to catch up.
IN DEEPER DEGREE
The proposal reiterated that China continues to open itself up to the world and participate more in global governance and trade "so as to establish a far-ranging community of shared interests." The country will attract more foreign investors by being clearer on the rules.
"Global resources may be ushered in to take part in the resource allocation in China, while China resources may as well go out to participate in global resource allocation," said Wang Yiwei, professor with Renmin University of China. China will support its coastal regions in taking part in global cooperation and competition to cultivate advanced manufacturing bases and economic zones that are of global importance, the proposal said.
"China shall continue to play an active role in the WTO to push forward the multilateral trade negotiations. Meanwhile, the country ought to make good use of the 'Belt and Road' initiative, FTZs and Asian Infrastructure Investment Bank to enhance its sound international image," said Huo Jianguo, a researcher with the Chinese Academy of International Trade and Economic Cooperation affiliated to the Ministry of Commerce.
During the opening up process, China will shoulder more responsibilities and contribute more to the world to achieve win-win results, Tsinghua University economist Hu Angang said.
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