Opinion: China’s Commitment to Opening-Up Will Benefit the World

The recent announcement of "reciprocal tariffs" by the U.S. has led to a substantial tariff war, significantly impacting global trade and testing countries' trade policies. During a roundtable with U.S. businesses, China’s Ministry of Commerce reaffirmed its commitment to reform and opening-up, emphasizing multilateralism as essential for addressing global challenges. This clear communication of China’s position aims to reassure foreign investors, including American enterprises, and stabilize their expectations in a time of uncertainty. The ministry also promised to protect foreign businesses’ legal rights in China [para. 1].

China's consistent and clear stance contrasts with the fluctuating policies of the U.S., making it an appealing destination for foreign investment. Multinational corporations view China's stability favorably, especially as tensions from trade wars escalate. Since China opened up its economy, it has become the world’s largest goods trading nation and a magnet for foreign direct investment (FDI), with FDI rising from $920 million in 1983 to $163.3 billion in 2023. Despite the short-term shocks from tariff wars, the global trade network driven by comparative advantage is unlikely to collapse, and globalization remains inevitable [para. 2][para. 3].

As unilateralism and protectionism have risen in recent years, multinational companies have increasingly sought to diversify and regionalize their operations. Some observers suggest that China may emerge as an "investment safe haven" due to its commitment to reforms and strategic development. Many multinationals stress the importance of China continuing its focus on policies that favor reform and opening-up, as global supply chains are heavily reliant on the Chinese market. By systematically optimizing its business environment in line with international standards, China can make itself even more attractive to foreign investors [para. 4].

The attractiveness of China’s market lies in its complete infrastructure, integrated industrial chain, skilled workforce, affordable labor, and a large consumer base. With emerging technologies, such as artificial intelligence, significantly shaping industries, China needs to modernize its infrastructure and strengthen industrial capacities to remain competitive globally. Enhancing a law-based, market-oriented, and internationalized business environment is critical to support these efforts [para. 5].

China is further leveraging U.S. challenges as a strategic opportunity to promote high-quality development and economic restructuring. Recently issued policies, such as the Communist Party and State Council’s "Opinions on Improving Price Governance Mechanisms," emphasize market-driven price formation. These reforms enable China to accelerate the construction of a new development model and advance sustainable economic growth, contributing to global economic stability as well [para. 6].

Despite various attempts by U.S. administrations, such as the Trump-era tariffs, to repatriate manufacturing, these efforts have largely failed due to economic principles governing industrial development. China’s manufacturing industry remains dominant, accounting for 35% of global output, and has removed foreign investment restrictions in this sector. In February 2023, China introduced the "2025 Action Plan for Stabilizing Foreign Investment," which focuses on expanding opening-up in fields like telecommunications, healthcare, and education, signaling robust plans for future collaboration and growth [para. 7].

Over the past four decades, China has navigated substantial challenges by embracing reform and opening-up, which have propelled its rise as a global economic power. Current needs and historical experience underscore the importance of continued openness, stabilizing foreign trade and investment, and creating mutually beneficial development opportunities with other nations [para. 8].