Major Tasks and Measures in Developing New Institutions for a Higher-Standard Open Economy

To make solid progress in developing new institutions for a higher-standard open economy, we should focus on institutional opening up. In actively pursuing new levels of opening up for China, we should focus on deepening institutional reforms in key areas related to international exchange and cooperation—including investment, trade, finance, and innovation—and take steps to improve supporting policies and measures.

Expanding institutional opening up

We will promote alignment with high-standard international economic and trade rules by deepening reforms related to state-owned enterprises, the digital economy, intellectual property rights (IPR), and government procurement. 

We will improve the underlying institutions for a market system, such as those for market access, property rights protection and trade, data and information, and social credit, in order to create a market system that is built on high standards and a world-class business environment that is market-oriented, law-based, and internationalized. 

To enhance government effectiveness, we will optimize administrative approval, market regulation, and public services; this will ensure a more stable, transparent, and predictable policy environment. To enhance domestic and international alignment of standards, we will actively adopt international standards and advanced specifications and procedures, develop a series of national standards that are internationally aligned, and work to boost the global reach of Chinese standards. 

Pilot programs for institutional opening up will be advanced with the aim of better leveraging pilot free trade zones as comprehensive testing grounds for reform and opening up and steadily promoting the development of the Hainan Free Trade Port. On this basis, we will conduct explorations to develop pioneering and integrated institutional innovations and ensure these innovations are effectively replicated and applied elsewhere. 

China will steadfastly safeguard the WTO-centered multilateral trading system, improve the mechanisms for high-quality cooperation under the Belt and Road Initiative, and participate in the reform of global economic governance. 

We will also actively move forward with joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement and expand the globally oriented network of high-standard free trade areas. 

Advancing reform of the systems and mechanisms for two-way investment

Ramping up the push to attract and utilize foreign investment, we will shorten the negative list for foreign investment as needed, expand the catalog of encouraged industries for foreign investment, and promote broader opening up in the telecommunications, internet, educational, cultural, and medical services sectors. 

In advancing the reform of foreign investment promotion systems, we will implement high standards for post-establishment national treatment, ensuring that foreign-funded enterprises enjoy national treatment for production factor access, license applications, standards setting, and government procurement. Steps will be taken to facilitate foreign equity investment and venture capital investment in China. 

We will promote the full implementation of landmark foreign investment projects. We will take a more coordinated approach to the planning and layout of opening up platforms around the country and promote innovations in the management systems and operational models of development zones. We will strengthen the legal and policy framework for overseas investment and ensure that domestic policies are harmonized with bilateral and multilateral investment agreements. 

We will optimize the support system for overseas investment, expand the functions of the national overseas investment management and service network, and fully leverage the comprehensive service platforms for supporting Chinese enterprises in going global. All this will help simplify overseas investment management and make it more effective. 

We will cultivate internationally competitive producer services, such as finance, accounting, consulting, and legal services, to provide Chinese enterprises with the high-quality professional support they need to go global. We will enhance oversight of overseas investment to guide enterprises in maintaining compliance in operations and management while also preempting and defusing various risks. 

Advancing trade coordination, innovation, and cooperation 

We will review and revise the Foreign Trade Law and strengthen coordination between trade policies and fiscal, financial, and industrial policies to create the institutional foundations and policy systems needed to support China's development as a strong trading nation. 

Bilateral trade structures will be improved to develop more diverse import channels as well as international trade markets. To accelerate the integration of domestic and foreign trade, we will advance related pilot programs, support integrated trade operations within enterprises, and promote the production of domestic goods using the same production lines, standards, and quality requirements as export products. 

We will accelerate trade innovations and make a strong push to promote trade in the digital sphere and green and low-carbon products. We will develop integrated pilot zones for cross-border e-commerce, drive innovation in trade in services, implement the negative list for cross-border services trade in full, and push ahead with comprehensive trials and demonstrations for broader opening in the services sector. 

To promote faster growth of offshore trade, we will develop new types of international transactions in this domain. Steps will be taken to accelerate the development of a modern distribution network that facilitates smooth domestic flow and international connectivity. Platforms such as the China International Import Expo will be leveraged to promote international procurement, investment, cultural exchange, and open cooperation. Regulatory innovations will be implemented in customs clearance, taxation, and foreign exchange to ensure secure, stable, and smooth operations in trade-related industrial and supply chains.

Promoting two-way opening up of the financial sector 

We will further open up the banking, securities, insurance, funds, and futures sectors and support the participation of eligible foreign institutions in financial pilot programs, in order to diversify the range of financial products and services and foster healthy market competition. 

We will promote two-way opening of financial markets to enhance interconnectivity between domestic and overseas markets and facilitate cross-border investment and financing. Efforts will continue to develop the foreign exchange market with a focus on elevating the quality of capital account opening. 

By improving cross-border RMB investment, financing, and settlement systems and infrastructure, we will lay the groundwork for fostering new types of mutually beneficial partnerships based on free use of the RMB. 

We will support Hong Kong in developing its offshore RMB market to consolidate its position as an international financial center and support Macao in strengthening its financial infrastructure, including its securities depository and clearing systems. Steps will also be taken to accelerate Shanghai's development as an international financial hub. 

We will encourage Chinese financial institutions to go global while also better regulating overseas investment and financing activities. Financial services supporting the Belt and Road Initiative will be optimized, third-party market investment and financing cooperation will be promoted, and joint financing initiatives with multilateral development institutions will be pursued.

Developing an open innovation system and environment

We will work to both develop self-reliance and strength in science and technology and foster openness and cooperation. On this basis, we will build a globally competitive open innovation ecosystem, assemble innovation resources from around the globe, and accelerate the development of new quality productive forces. 

More actively integrating ourselves into global innovation networks, we will seek to strengthen international cooperation in innovation-related fields such as technological R&D, IPR protection, and talent development. We will improve the legal framework for IPR protection in line with China's national conditions and global development needs and work for improvements to international rules and standards concerning IPR. 

We will move faster to build China into a major global center for talent and innovation. In places where conditions permit, we will support the development of open innovation pilot zones and explore avenues for developing institutional mechanisms facilitating free and orderly cross-border flow of innovation factors. 

We will create open cooperation platforms based on international innovation resources, vigorously pursue international R&D collaboration, and build globally competitive sci-tech innovation centers. We will improve the cooperative mechanisms for cross-border data flow and build a global multi-tiered digital partnership network. Based on a commitment to fully participating in global sci-tech governance, China will work to better influence the global innovation policy agenda.

Improving the security system for an open economy

We will improve the national security review and regulatory systems in the economic domain to improve the effectiveness of reviews and regulation and enhance risk prevention and control in key sectors, including trade, finance, and data. 

We will improve the security risk management mechanisms for trade and create a coordinated multi-stakeholder mechanism for addressing trade frictions. The financial regulatory system will be improved to ensure better identification, early warning, and response with regard to financial risks across different sectors, markets, and regions. 

We will enhance our ability to protect critical information infrastructure and optimize regulatory mechanisms for cross-border data flow. To better protect overseas interests and preempt and control overseas investment risks, we will improve the overseas investment protection and remedy systems. 

We will move faster to develop a system of laws with extraterritorial application and improve the legal framework for countering foreign sanctions, interference, and long-arm jurisdiction. We will improve the mechanisms for participating in global security governance and play an active part in the formulation of global security rules. We will promote stronger international coordination on macroeconomic policy to guard against risks from global economic fluctuations and spillover effects of international economic policies. 

Editor: Zhang Xian