Institutional opening-up has been made a prominent hallmark by the government as it seeks to open its door wider with a more market-oriented and law-based approach.
With the Foreign Investment Law, a shorter negative list for foreign investment and the first negative list for cross-border services trade in the Hainan province, China has been unleashing institutional dividends to expand development room for foreign enterprises and share its huge market, a Chinese newswire reported.
The country has also been working to reduce trade barriers with more partners, by setting up with 21 pilot free-trade zones and signing 19 free trade agreements over the past decade.
Foreign direct investment to the Chinese mainland, in actual use, surpassed 1 trillion yuan ($140.18 billion) in 2021 for the first time—up by 62.9 per cent from the 2012 level and ranking second globally.
The flow of foreign funds into the country expanded 14.4 per cent year on year to nearly 1.09 trillion yuan in the first 10 months this year despite a global economic slowdown.
The country’s gross domestic product (GDP) further expanded to over 114 trillion yuan last year—contributing over 30 per cent to world economic growth--after crossing the 100-trillion-yuan threshold in 2020.
China’s trade in goods and services totaled $6.9 trillion in 2021, securing the top position globally for two consecutive years.
ALCHEMPro News Desk (DS)
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