Understanding and Advancing High-Standard Opening Up

Openness leads to progress, while isolation leaves one behind. For any country, the only path to prosperity and development lies in opening itself to the world. Since the launch of reform and opening up in 1978, China has pursued opening up as a basic state policy. The results of this commitment have been remarkable, propelling China’s historic transformation from a country that was largely isolated into one that is open in all dimensions. This has enabled China to not only advance its own development but also benefit the rest of the world. 

Drastic changes are now reshaping our world and our times in ways never before seen. The landscape of international economic cooperation and competition is changing profoundly, and global economic governance systems and rules are undergoing major adjustments, bringing us to a critical crossroads in global development. Against this backdrop, President Xi Jinping has on multiple occasions affirmed that “China’s resolve to open up at a high standard will not change, and China’s door will open still wider to the world.” This declaration reflects China’s confidence and determination to pursue greater opening up at a high standard.

I. Grasping the significance of high-standard opening up in the new era

Opening up has been a defining feature of contemporary China. Since the 18th National Congress of the Communist Party of China (CPC) in 2012, the Central Committee with Xi Jinping at its core has accurately grasped prevailing trends by pursuing a more proactive strategy of opening up. China has fully integrated itself into global industrial, supply, innovation, and value chains and actively expanded international markets, enabling it to secure historic achievements in opening up. This progress has provided a stronger strategic underpinning for Chinese modernization. The report to the 20th CPC National Congress laid out comprehensive plans for “promoting high-standard opening up.” In the resolution adopted at its third plenary session, the 20th CPC Central Committee placed special emphasis on this goal, dedicating an entire section to “pursuing high-standard opening up.” High-standard opening up is thus a major strategic plan developed by the Central Committee in light of our domestic and international imperatives. It is our guide for advancing a broader agenda of opening up across more areas and in greater depth.

The Lingang Special Area of China (Shanghai) Pilot Free Trade Zone, May 21, 2025. Since its establishment in 2019, the Lingang Special Area has pursued an intensive agenda of comprehensive high-standard opening up. It has made initial progress in developing a framework for institutional opening up centered on freedom of investment, trade, capital flows, transportation, and employment, as well as convenient information connectivity. PEOPLE’S DAILY / PHOTO BY ZHANG MINGWEI

A powerful driver of high-quality economic development

High-standard opening up addresses the issue of coordination between internal and external development. By enabling China to attract more advanced production factors from around the world and better utilize domestic and international markets and resources, high-standard opening up ensures all the ingredients needed for high-quality development—greater development space, enhanced quality, and new growth drivers. As such, the higher our standard of opening up, the greater its capacity to drive high-quality development will be. This is why, since 2012, China’s efforts to advance high-standard opening up have helped deliver better-quality, more efficient, fairer, and more secure and sustainable economic development.

Global technological innovation has entered a period of unprecedented intensity and dynamism, with cutting-edge advances in artificial intelligence, quantum technology, biotechnology, and other fields emerging in quick succession. Major countries around the world are racing to secure the high ground in a new round of technological revolution and industrial transformation. At the same time, however, China is still confronted with the prominent issue of imbalanced and inadequate development; our capacity for innovation remains insufficient, and our industrial and supply chains lack stability and security. To address these challenges, we must fully leverage high-standard opening up to attract high-quality production factors, further technological innovation and industrial upgrading, and accelerate the development of new quality productive forces. This will enable us to create new drivers and strengths for high-quality development and effectively upgrade and appropriately expand China’s economic output.

An inevitable requirement for in-depth reform

Since 2012, China has greatly enhanced its economic vitality by eliminating many obstacles and bottlenecks through high-standard opening up. However, we must also recognize that as the primary social challenge in China has evolved, there remains a host of intractable issues that need to be addressed in the key areas of reform, as well as difficulties that require attention in the foreign trade system and the management of inward and outward investment. Therefore, as a matter of urgency, we should advance high-standard opening up to improve the socialist market economy, ensuring that the market plays the decisive role in resource allocation and the government better fulfills its role, fostering a first-rate business environment that is market-oriented, law-based, and internationalized, and creating a new system for a higher-standard open economy. 

The responsibility of a major country in advancing economic globalization

Openness and connectivity are the defining trends in our world today. Economic globalization is an objective response to the development of productive forces and, as such, represents an unstoppable tide. On reflection, it is clear that China has arrived at where it is today and become a stabilizing force and driver of global growth precisely because it has steadfastly advanced opening up and actively participated in and supported economic globalization. The International Monetary Fund estimates that every 1 percentage point increase in China’s growth rate boosts global economic growth by 0.3 percentage points. In recent years, economic globalization has encountered a backlash, with several countries pursuing reshoring, nearshoring, and friend-shoring strategies. However, overall, the momentum for economic globalization still outweighs any existing resistance. The direction of progress has not changed and will not change going forward. We must, therefore, adopt a stance that is beneficial for both our own national development and global openness and mutually beneficial cooperation. This means advancing high-standard opening up to promote trade and investment liberalization and facilitation, deepening international cooperation in industrial and supply chains, and working with others to cultivate new drivers of global growth, build an open world economy, and make economic globalization more open, inclusive, and balanced so its benefits are shared by all.

II. Understanding what is involved and required in institutional opening

Institutional opening is a hallmark of high-standard opening up. Unlike opening up that is based on flows of goods and production factors, institutional opening is primarily focused on rules, regulations, management, and standards. It is comprehensive, systematic, and stable in nature, representing a deeper and more advanced form of opening up. In the report to the 20th CPC National Congress, it was emphasized that China would steadily expand institutional opening up in terms of rules, regulations, management, and standards. At its third plenary session, the 20th CPC Central Committee also laid out strategic plans for steadily expanding institutional opening up. All this has provided clarity about what is involved and required in this endeavor. 

Actively aligning with high-standard international economic and trade rules

At present, we are witnessing a major remaking of the rules governing international trade. High-standard international economic and trade rules are exemplified by agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement. Such frameworks not only set a higher bar for market openness but also extend beyond at-the-border measures, such as tariffs and non-tariff barriers related to market access, to cover behind-the-border measures, which include domestic regulatory policies such as those for competition and oversight. These agreements also tend to include rules on new fields such as data flows, state-owned enterprises, environmental standards, labor provisions, and anti-corruption measures. When judging itself against high-standard international economic and trade rules, China still has some distance to travel in its opening-up endeavors, particularly with regard to behind-the-border measures. 

It is thus essential that we follow through on the third plenary session’s plans for “promoting alignment with high-standard international economic and trade rules,” advancing convergence and harmonization in rules, regulations, management, and standards relating to property rights protection, industrial subsidies, environmental standards, labor protection, government procurement, e-commerce, the financial sector, and other areas. We should draw on the experience gained from trials in the China (Shanghai) Pilot Free Trade Zone on achieving full alignment with high-standard international economic and trade rules, effectively replicating these measures elsewhere to reap the dividends of institutional innovation on a broader scale.

The Southeast Asia Pavilion at the Ninth China-South Asia Expo in Kunming, Yunnan Province, June 19, 2025. Running from June 19 to 24, 2025, the event brought together all nations in South and Southeast Asia, drawing participation from a total of 73 countries, regions, and international organizations, as well as over 2,500 enterprises. PHOTO BY XINHUA REPORTER HU CHAO

Participating in and promoting reform of global economic governance

In recent years, fundamental changes in the global trade system have accelerated. On the one hand, against a backdrop of weakening trade among developed economies, the Global South has increasingly become the primary driver of global trade growth. On the other hand, the multilateral trading system centered on the World Trade Organization (WTO) has come under threat, as mega free trade agreements spearheaded by developed economies have gained a dominant position amid a shake-up of international economic and trade rules. This indicates that the current global economic governance architecture has failed to keep pace and is out of sync with changing realities. 

President Xi Jinping has stressed that we must “safeguard the multilateral trading system and the common interests of the Global South” and “build a fairer and more equitable global economic governance system that is beneficial to all.” These statements clarify the significance of participating in and promoting reform of the global economic governance system, as well as the principles and requirements to be followed in doing so. With a commitment to firmly upholding the authority and efficacy of the WTO-centered multilateral trading system, we should participate extensively in WTO reform and in the process of adjusting international economic and trade rules, in an effort to provide the world with more public goods.

Seizing the initiative to open wider and advance unilateral opening up

Such moves are the natural choice for China as it seeks to take the initiative in economic development and international competition. With the topic of “China Travel” having taken overseas online social media by storm, “China Shopping” has now become the latest buzzword internationally. These trends are a testament to China’s efforts to roll out visa-free policies for a growing number of countries. As of June this year, China’s unilateral visa-free policy had been expanded to cover 47 countries, marking concrete progress in the push to actively open wider and advance unilateral opening up through multiple measures. China must now take further steps to open up its commodities, services, capital, and labor markets. It should also unilaterally grant broader access to the world’s least developed countries to help them better integrate into international markets and the multilateral trading system.

III. Improving the systems and mechanisms for high-standard opening up

High-standard opening up hinges on well-developed systems and mechanisms. At its third plenary session, the 20th CPC Central Committee made comprehensive arrangements for putting such structures in place. With an emphasis on institutional opening up, it further clarified the principles and requirements for developing new institutions for a higher-standard open economy.

In an economically globalized world, international trade serves as a vital engine for economic growth and optimal resource allocation. In light of this, it is essential to deepen structural reform in foreign trade and accelerate China’s transformation into a trader of quality. While China has remained the world’s largest trader of goods for many years, its growth model is largely extensive in nature, with many products still on the mid- and low-end of the global value chain. Given these realities, China must proactively adapt to the digitalization and green transformation of trade by establishing robust institutional and policy frameworks that will support its evolution into a trader of quality. In goods trade, we must cultivate new areas of growth, such as trade in intermediate goods and green trade, and create an institutional environment that enables the development of new business forms and models. In terms of services, we must fully implement negative lists for cross-border trade in services and advance comprehensive trials and demonstrations for expanding the opening up of the service sector. To develop digital trade, we should see that digital technologies empower all stages of trade and further develop integrated pilot zones for cross-border e-commerce. 

Foreign investment represents a pivotal force for advancing Chinese modernization and facilitating the joint prosperity and development of the Chinese and global economies. It is crucial that we deepen reform of the management system for foreign investment and create a world-class business environment. 

Since 2012, China has made continuous efforts to improve its business environment. It has reduced the foreign investment negative list on eight occasions, cutting the original 190 items down to just 29 items on the nationwide list and 27 items on the list for pilot free trade zones. All market access restrictions on foreign investment in the manufacturing sector have also been lifted. However, shortcomings remain in ensuring equal treatment for foreign-funded enterprises in areas such as access to production factors, license applications, and standards setting. China should further expand the catalog of encouraged industries for foreign investment, support foreign-funded enterprises in collaborating with upstream and downstream enterprises in industrial chains, and make it more convenient for people from outside the mainland to live, receive medical services, and make payments here. In addition, with a view to ensuring high-quality “going global” initiatives and building new advantages for high-standard opening up, we must deepen reform of the outward investment management frameworks, refine the institutions and mechanisms for promoting and protecting Chinese investment abroad, and improve the management and service for outward investment.

By optimizing the layout for regional opening up, we can proactively plan the promotion of regional economic development and respond to the evolving landscape of international economic cooperation. We should refine the division of functions for opening up among different regions in order to develop a diverse array of pacesetters. When it comes to opening up, the foundations, levels, and objectives of China’s different regions vary, so we must ensure a rational division of labor and optimized development. 

Coastal regions should consolidate their lead in opening up, doing more to serve as pioneers and pacesetters in institutional opening. Border regions should serve as bridges connecting domestic and international markets, enhancing both their capacity to drive inland development and facilitate external opening. Inland areas should create opening-up hubs, strengthening their capacity as hinterlands to support high-standard opening up. Harnessing the institutional strengths of the One Country, Two Systems policy, Hong Kong and Macao should pursue deeper cooperation within the Guangdong-Hong Kong-Macao Greater Bay Area by strengthening alignment of rules and mechanisms.

The Belt and Road Initiative serves as a vital platform for creating new opportunities for mutually beneficial development and promoting explorations on global governance models. It is essential to continually refine the mechanisms for advancing high-quality Belt and Road cooperation. China has signed over 200 agreements on cooperation with more than 150 countries and 30 international organizations, promoting connectivity in terms of policy, infrastructure, trade, finance, and people-to-people exchanges. All this has provided fresh momentum for global economic growth. We should actively respond to opportunities and challenges in technological innovation, geopolitics, and other domains by strengthening multilateral platforms for cooperation in green development, the digital economy, artificial intelligence, energy, taxation, finance, disaster mitigation, and other areas, and refine the integrated framework for land, sea, air, and cyberspace connectivity. We must keep working to build the BRI into a “road to happiness” that benefits all sides and the world as a whole.

IV. Investing in China means investing in the future

The foreign investment we attract and utilize serves as a benchmark for the standard of our openness. It is also a crucial means of realizing high-standard opening up. This past March, during a meeting with representatives of the international business community, President Xi Jinping pointed out, “The policy of welcoming foreign investment has not changed and will not change.” He added, “China has been and will remain an ideal, secure, and promising destination for international investors.” These statements spell out China’s consistent position on attracting and utilizing overseas investment, as well as the inherent advantages it possesses in this regard. They represent a sincere invitation to outside enterprises to share in China’s opportunities by pursuing mutual development.

China’s long-term growth trajectory and multifaceted advantages create tremendous, dependable opportunities for foreign investors. These elements will only help further solidify confidence in investing in China. China’s economy continues to perform stably, showing strong resilience and growth potential. As the world’s second-largest consumer market for many years running, it is demonstrating vigorous demand for consumption upgrades and vast untapped market potential. It is also witnessing a surge in momentum for high-quality development, thanks to its complete industrial system, strong industrial support capabilities, abundant human resources, as well as the richest range of application scenarios for the latest round of technological revolution and industrial transformation. The country enjoys long-term political stability and social harmony and is recognized as one of the safest in the world. Its institutional safeguards remain highly stable, and its measures on opening up have been both concrete and effective. Through solid actions, it has made good on its promise to “keep opening its door even wider to the world.” Amid a sluggish global economic recovery and sagging momentum in cross-border investment, China remains a favored destination for investors worldwide.

As of March this year, foreign businesses had established a cumulative total of 1.24 million enterprises in China, with aggregate investment approaching US$3 trillion. While helping to drive China’s reform and opening up, these enterprises have also embraced opportunities for their own growth and reaped substantial returns. The past has proven and the future will continue to prove that, as President Xi has said, “embracing China is embracing opportunity, believing in China is believing in a better tomorrow, and investing in China is investing in the future.”

The more we expand opening up, the harder we must work to attract and utilize foreign investment. As bridges between the domestic and international economies, foreign-invested enterprises hold great significance in our efforts to create a new development pattern and promote high-quality development. At the same time, it must be recognized that we face many challenges in attracting and utilizing foreign investment. From an international perspective, global cross-border direct investment remains persistently sluggish and is affected by increasing instability. Geopolitical factors are also increasingly impacting foreign investors coming to China. From a domestic perspective, foreign-invested enterprises still face certain constraints in aspects such as market access and domestic regulations. We must keep striving to reduce restrictions on foreign investment and enhance the business environment. We must work with greater care and effort to improve services and support so that foreign-invested enterprises can develop in China with peace of mind, assurance, and confidence.

V. Balancing security and development imperatives in high-standard opening

The stronger our capacity to safeguard security, the more confident we can be in opening up to the outside world. In recent years, certain countries have pushed unilateralist policies, attempting to decouple and delink from China in the economic sphere by building “small yards with high fences.” China has put a stronger focus on balancing development and security imperatives, working to diversify trading partners and strengthen the dynamism and reliability of its domestic economy. The absorptive capacity of China’s domestic market has notably increased, and the resilience and security of its industrial and supply chains have improved. This is also true for its capacity to guarantee the supply of strategic resources. Furthermore, China has pursued a holistic approach to national security. It has enacted laws and regulations, such as the Anti-Foreign Sanctions Law, and established systems, including the unreliable entity list. These moves have allowed us to weave a strong and secure safety net for opening up. This is precisely what has enabled China to calmly respond to various forms of containment and suppression.

China currently faces numerous security challenges in pursuing high-standard opening up. Risks and uncertainties in the world economy are intensifying, with traditional and non-traditional security risks becoming intertwined. The advantages China traditionally enjoyed in the international division of labor and competition have weakened somewhat, and bottlenecks in core technologies in key fields have yet to be effectively resolved. We face greater challenges in responding to external shocks and promoting smooth domestic and international economic flows; more work needs to be done to prevent and mitigate security risks in key domains, such as finance and information. In the face of such challenges, we must focus on enhancing our competitive strength, our ability to regulate opening up, and our risk prevention and control capabilities. We must better prepare for worst-case scenarios and ensure positive interactions between high-level opening up and greater security. It is vital that we make demand a more potent driver in the domestic economy, boost the quality and capacity of our supply chains, and accelerate the development of a modern industrial system that is self-supporting, controllable, secure, reliable, and highly competitive. All this will ensure that China’s economy continues to develop smoothly and that overall social stability is maintained. It is also necessary to further strengthen the rule of law in foreign-related affairs. We must improve the mechanisms for countering foreign sanctions, interference, and long-arm jurisdiction and expand the country’s toolkit of relevant countermeasures, while also moving faster to establish a system for safeguarding overseas rights and interests.

China must be open to the world to achieve development, while the world needs China’s engagement to realize prosperity. China is committed to the correct course of economic globalization. Through new achievements in high-standard opening up, it will continue to advance the great cause of Chinese modernization and make new and even stronger contributions to advancing global economic prosperity and progress.

(Originally appeared in Qiushi Journal, Chinese edition, No. 14, 2025)