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Redefining development by opening up further

China Daily | Updated: 2021-03-03 07:42
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Despite the challenges brought by COVID-19 and the global economic recession, China became the world's top destination for new FDI last year. [Photo/IC]

The Ministry of Commerce recently issued a notice saying the country must improve the foreign investment management system, so as to attract more foreign investment to promote domestic circulation.

The document suggested 22 specific measures, something that is much-needed given that the utilization of foreign capital constitutes an important part of China's basic policy of opening-up and building an open economic system. Promoting a new round of higher-level opening-up is central to China realizing high-quality economic development and overcoming difficulties brought about by the novel coronavirus outbreak.

With economic globalization encountering headwinds, and rising protectionism and unilateralism in some economies, China has enacted the Foreign Investment Law in keeping with its efforts to shift from an opening-up dominated by goods to an institutional opening-up. It also shows China's determination and courage to advance reform and opening-up.

Since the Foreign Investment Law came into effect on Jan 1, 2020, China has taken concrete measures to encourage and promote foreign investment, protect the legitimate rights and interests of foreign investors, standardize the foreign investment management, improve the foreign investment environment, and promote higher-level opening-up.

The law has created a more market-oriented, law-based investment environment for foreign investors and foreign-funded enterprises, effectively ensuring China's utilization of foreign investment increased by 4.5 percent in 2020 in spite of the impact of the pandemic.

A more open Chinese market will provide the world a broad platform for win-win cooperation and enhance foreign investors' confidence to continue operations in China.

The novel coronavirus outbreak has not dampened foreign investors' enthusiasm, because China is not only an important production base and consumer market, but has also opened up wider, providing a better business environment and making the Chinese market one of the most favored foreign investment destinations.

The year 2021 not only marks the start of the 14th Five-Year Plan period (2021-25), but also China's start of a new journey to realize more ambitious goals. To realize higher-quality, more efficient, fairer, more sustainable and safer development, the country must promote the integration of international and domestic industrial chains, improve the service guarantee system for foreign investment, and deepen reforms to create a better environment for foreign investors to participate in China's building of a new development paradigm.

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