Opinion: Broadening New Industries’ Market Access Is Imperative

[para. 1] The Chinese government has issued new guidelines, “Opinions on Improving the Market Access System,” to reform the country's market access system, aiming to boost economic transformation and upgrade. The document emphasizes a shift towards "broad entry and strict management," promoting competition and reducing entry barriers for businesses, particularly in new sectors like new energy and artificial intelligence.

[para. 2] [para. 3] The market access system, considered crucial for a thriving market economy, has been gradually liberalized throughout China's reform and opening-up period. The document underscores the importance of this system in fostering fair competition and economic dynamism. A key aspect of liberalization is the continuous refinement of the negative list, which outlines restricted or prohibited sectors for market entry.

[para. 3] Since 2018, the negative list has been revised four times, with the number of restricted items shrinking from 151 to 117. The government remains committed to further shortening this list, aiming to create a more open and accessible market for businesses.

[para. 4] Optimizing market access, particularly for emerging industries, is deemed essential for stimulating economic growth and industrial advancement. Removing restrictions and fostering equal competition in nascent sectors is crucial for attracting talent and innovation.

[para. 5] The "Opinions" highlight the government's support for new business models and industries. Emphasizing efficient entry through standardized, market-driven approaches, the document aims to provide clear pathways for new businesses to enter the market.

[para. 6] It is important to note that the focus on easing market access for new industries does not imply preferential treatment. The objective is to align regulations with the characteristics of emerging sectors and promote a level playing field for all.

[para. 7] [para. 8] While the "Opinions" signify a positive step, successful implementation hinges on the cooperation of local governments and their willingness to dismantle vested interests. Superficial liberalization tactics, such as imposing hidden barriers through stringent local regulations, must be addressed. However, it's equally important to guard against irresponsible deregulation at the local level, ensuring alignment with national economic strategies.

[para. 9] The establishment of new businesses is only the first step; their growth and sustainability rely heavily on a supportive ecosystem, including streamlined administrative procedures. The example of commercial aerospace in Hainan province highlights the need to adapt regulatory frameworks to suit the specific needs of emerging industries.

[para. 10] The "Opinions" represent a significant move towards advancing China's reform agenda, aiming to revitalize the economy and foster the development of new growth drivers through improved market access and support for new business models.