At the recent National People’s Congress, China’s new Premier Li Qiang seized the world’s attention with his compelling inaugural press conference. Tackling a range of pressing issues, Li’s call to “embrace reform and embark on an open path” resonated deeply, sparking anticipation and hope for the future.
Li underscored the government’s commitment to serving the people and enhancing their well-being. To realize these goals, China must champion reform and openness as guiding principles. In its quest for modernization and the achievement of its long-term goals, China must persistently engage in socialist market economy reforms while maintaining a high level of openness to the world.
Over the past 45 years of reform and opening-up, China has made extraordinary strides in economic and social development. However, the nation still grapples with issues of unbalanced and inadequate growth. Li acknowledged the importance of transitioning from addressing the binary question of “having it or not” to the more nuanced challenge of “how well” China develops. This shift requires a renewed emphasis on technological innovation, the establishment of modern industrial systems, and the pursuit of sustainable, eco-friendly development models.
These pressing problems and long-term challenges can only be resolved through reform and openness. During the press conference, Li repeatedly emphasized these concepts, addressing various areas such as high-quality development, rural revitalization, stabilizing foreign investment, and government self-improvement. Private sector development emerged as a particularly significant topic.
The development of the private economy is currently a major challenge for the Chinese economy. Li stated that “two commitments” (consolidating and developing the public sector while encouraging, supporting, and guiding the development of the non-public sector) are essential components of China’s economic system and long-term strategy. His position on this issue was clear and rooted in practical experience, having worked in coastal regions such as Shanghai and Zhejiang and Jiangsu provinces, where the private economy thrives.
Li specifically mentioned the “four thousand” spirit, referring to entrepreneurs’ persistence through hardships and challenges in places like Jiangsu and Zhejiang. This spirit is inherent among the people, but its manifestation depends on systems and policies. With reasonable systems and policies in place, this entrepreneurial spirit can be revitalized, and entrepreneurs’ hardships can be reduced.
Over the past 45 years of reform and opening-up, China has embraced globalization, and its economy has expanded, providing a historic opportunity for foreign businesses in the country. Li stated that “openness to the world is our fundamental policy,” promising that “China’s door to openness will continue to expand, the environment will improve, and services will become better.”
This year, China will further open up and align itself with high-standard international economic and trade rules. Regardless of whether China can successfully join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), it should first reform and improve relevant systems to meet their requirements.
In discussing openness, the Sino-U.S. relationship is a crucial element that cannot be ignored. Li emphasized that the economies of China and the United States are inextricably linked, with both countries benefiting from each other’s development.
“China and the U.S. can, and should, cooperate. The potential for collaboration between the two nations is vast. Containment and suppression are counterproductive for both sides,” Li stated.
Chinese data reveals that in 2022, Sino-U.S. trade soared to a record high of nearly $760 billion. This suggests that uncertainties in the Sino-U.S. relationship should not impede China’s commitment to global openness.
At the press conference’s outset, Li acknowledged, “Reflect upon it: when has there ever been a time or year without challenges? We have consistently achieved new growth by surmounting difficulties.”
Overcoming adversity demands resolve and bravery, as well as robust systems and astute policies. Fundamentally, China’s capacity to conquer obstacles and advance over the past 45 years has hinged on a singular, critical factor — embracing reform and opening up.
Today’s decision-makers, in conjunction with the entire nation, have borne witness to China’s historical transformation over the past four decades. They ought to be the guardians and advocates of reform and opening-up. Some foreign observers claim that “China’s era of reform and opening up has already ended.” Dispelling this misconception necessitates action. The future hinges on the efficacy of reforms and the breadth of the path to increased openness.
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