Xinhua Insight: An open China, a blessing for the world

Wang Yuquan, a founding partner of investment firm Haiyin Capital, is preparing for a China-U.S. tech summit next month in Boston.

The meeting is expected to be a platform for Chinese manufacturers and U.S high-tech companies to explore cooperation opportunities, according to the venture investor.

Bian Chenggang, general manager of Intel's subsidiary in Chengdu City in southwest China's Sichuan Province, said many foreigners had no idea where the city was when the chip giant built its first plant there 10 years ago.

"Chengdu has become one of Intel's largest production bases in the world. Now, other foreign firms are interested in investing in the city," said Bian.

Wang, who travels frequently between China and the U.S., said almost every day entrepreneurs from the world's top two economies meet for cooperation in a broad range of fields.

While foreign companies enjoy the benefits of China's growth, some business leaders and analysts have voiced concern over whether China can honor its reform and opening up commitments.

During his U.S. visit, President Xi Jinping said, "China will open its door still wider to the outside world, and the door will never be closed."

Xi has made similar pledges on several occasions, sending a strong and clear signal that China will continue its opening up, which has brought prosperity to its people.

China's policies of attracting foreign investment will not change, nor will its pledge to protect the legitimate rights and interests of foreign investors in China, said the president.

NEW OPENING UP

In 1979, late Chinese leader Deng Xiaoping paid a historic visit to the U.S. shortly after China's reform and opening up process began.

Thanks to pushing forward with reform and opening up, China has become the world's number two economy and lifted hundreds of thousands of people out of poverty.

"The new round of opening up [seeks to maximize on] growth impetus from the outside and sharing opportunities inside," said Xi.

In September, China's cabinet promised easier market access and better government services for foreign investors.

Earlier this year, China revised an investment regulation and allowed foreign investors access to half of the previously banned or limited sectors.

China was the world's largest foreign capital destination last year. In the first eight months in 2015, foreign direct investment in China grew 9.2 percent to 525.3 billion yuan (82 billion U.S. dollars).

A report released by the American Chamber of Commerce in Shanghai showed that 95 percent of more than 300 U.S. entrepreneurs surveyed planned to increase or maintain their investment in China.

On the back of the "go abroad" drive, bullet train makers and nuclear power generators among other manufacturers are exporting on an unprecedented scale.

Last year, China's outbound direct investment hit a record of 123.1 billion U.S. dollars, up 14.2 percent.

So far, China has signed 14 free trade agreements and established four free trade zones in Tianjin, Shanghai, Fujian Province and Guangdong Province. A slew of trade facilitation measures were also put in place.

Bai Ming, a senior researcher with the Ministry of Commerce, said as the world's top goods trader, China's efforts to bolster trade will not only help domestic companies but also underpin global trade.

In the tightly controlled financial sector, China is advancing the convertibility of the yuan under the capital account in a steady and orderly manner.

NEW OPPORTUNITIES

Xi said that in the next five years, China will import goods and services worth 10 trillion U.S. dollars, invest 500 billion U.S. dollars overseas, and witness 500 million trips made by Chinese visitors to foreign countries.

This means that China, despite the economic slowdown at home, is still creating great business opportunities for the ailing global economy.

The International Monetary Fund estimates that China contributed 27.8 percent of global economic growth last year, higher than the U.S. contribution of 15.3 percent. The institution expects the Chinese figure to grow to 28.5 percent this year.

Bai said that in the primary stage of opening up, China took advantage of the global prosperity mainly created by other countries. In the new stage, China will actively participate in, and lead the formulation of the international rules, and take the initiative to create economic development opportunities for itself and other countries.

In the latest case, the China-sponsored Belt and Road Initiative and the Asian Infrastructure Investment Bank have been warmly received and widely supported in the world community.

Liu Yuanchun, an economist with the Renmin University of China, said the country's new round of opening up came at a time when the faltering global recovery is seeking solid footing.

"An open Chinese economy will give global growth a strong leg-up," said Liu. Endi