Despite the prevailing trends of deglobalisation and protectionism, China remains steadfast in its commitment to a high-standard opening-up, providing certainty and opportunities for global businesses.
As the world’s second-largest economy and a major global investor magnet, China’s efforts to widen its opening-up not only propel its own high-quality development but also create extensive opportunities for the global community.
China’s pursuit of high-quality development involves a concerted effort to expand institutional opening-up, encompassing rules, management and standards.
Zhang Wei, the vice president of the Chinese Academy of International Trade and Economic Cooperation, emphasises that institutional opening-up is central to China’s engagement with the world.
The recent comprehensive plan to promote high-level institutional opening-up in the China (Shanghai) Pilot Free Trade Zone aligns with international economic and trade rules, marking a crucial step in this direction.
Under the policy of high-standard opening-up, China has implemented measures to ease market access and level the playing field for foreign companies.
The renewal of the Catalogue of Industries Encouraged for Foreign Investment, the reduction of items on negative lists, and the implementation of financial opening-up measures all contribute to a better business environment.
The Central Economic Work Conference's emphasis on easing market access and aligning with global high- standard economic and trade rules further strengthens China's commitment to openness.
Creating a Better Business Environment: A Top-Notch Approach
China’s commitment to creating a top-notch business environment, which is market-oriented, law-based and internationalised, is evident through initiatives like the Foreign Investment Law implemented in 2020.
The law establishes comprehensive legal standards for foreign investors, addressing concerns and providing facilitation for foreign investment.
As a result, China maintains its position as the world’s second-largest recipient of foreign investment, offering a conducive environment for foreign investors to operate and thrive.
Deputy President Paul Mashatile’s recent impactful visit to China symbolises the profound bond between China and South Africa.
Beyond ceremonial protocols, the visit involved strategic conversations to solidify economic ties and affirm South Africa’s growing prominence within Africa’s investment landscape.
The collaboration, rooted in historical diplomacy and evident in projects like China’s support for South Africa’s energy initiatives, stands as a testament to the transformative power of international partnerships.
The 8th SA-China Bi-National Commission and China International Import Expo occurred within the context of celebrating 25 years of formal diplomatic relations between the two countries, while historic ties date from the Bandung Conference of 1955. It also follows shortly after the successful fourth state visit to South Africa by President Xi Jinping, and the 15th BRICS Summit and China-Africa roundtable in August in Johannesburg.
Other high-level engagements that took place last year include: the People-to-People Exchange Mechanism in February; the Strategic Dialogue in May and the Joint Economic and Trade Committee in August.
South Africa and China enjoy strong and vibrant economic relations. China is South Africa’s largest global trading partner and South Africa is China’s largest trading partner in Africa.
China is a significant investor in South Africa and supports the country’s proposed infrastructure development projects such as the Small Harbour Development Project and others, while many South African firms are invested in and thriving in the Chinese market.
China has supported South Africa’s initiatives to find a lasting solution to the country’s energy challenges, contributing expertise and equipment to the efforts.
China International Import Expo: A Showcase of Global Collaboration
The 6th China International Import Expo in 2023 demonstrated the depth of global collaboration, with 72 countries and international organisations participating.
Notably, 64 were Belt and Road participating countries. The business exhibition featured 289 Global Fortune 500 companies and industry leaders, resulting in tentative deals worth $78.41 billion for one-year purchases of goods and services – an increase of 6.7% from the previous year.
As China continues to expand high-standard opening-up, ease market access and foster a better business environment, it not only ensures its own high-quality development but also invites the world to share in the dividends of collaboration.
The evolving narrative of global economics finds hope in the synergy between nations, promising mutual benefits and diplomatic alliances that transcend geographical boundaries. The unfolding chapters of the alliances offer a saga of mutual growth, marking a testament to the transformative power of international co-operation.
* Kuben Chetty is a senior journalist at Independent Media.
The Mercury