The 13th Five-Year Plan (FYP) period is a decisive stage in building a moderately prosperous society in all respects and delivering the first centenary goal. Faced with such major risks and challenges as the anti-globalization trend and global spread of COVID-19, the Ministry of Commerce has forged ahead and met difficulties head on under the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We have striven to pursue higher-level opening-up, gradually build a new sound mechanism for an open economy, and break new ground in opening up across the board at a quicker pace, thus making great contributions to the economic and social progress in China.

Remarkable achievements in building an open economy

During the 13th FYP period, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at the core, we have taken solid steps towards turning China into a trader of quality, moved faster with fostering new competitive advantages of foreign trade with technology, standards, brands, quality and services at the center and continuously enhanced the global influence of goods, investment and services from China.

China’s position as a big trading nation is strengthened. On the fast track to optimization and upgrading, China’s foreign trade has remained stable and well-structured. The value of import and export of goods rose from US$3.95 trillion in 2015 to US$4.58 trillion in 2019, making China the largest trader in goods and largest exporter in the world for 3 and 11 consecutive years respectively. With respect to services trade, the import and export value increased to US$785 billion dollars in 2019 from US$654.2 billion dollars, ranking second globally. The structure of foreign trade is improving. In 2019, export of machinery and electronic products accounted for 58.4% of China’s total exports and export of high-tech products registered a rapid growth; the international market is better structured with export to emerging markets rising to 49.2%; development of regions is more balanced with the share of export from China’s central and western regions increasing to 57.8%. New models of trade become a new growth area. In 2019, import and export via cross-border e-commerce retailing increased four-fold and export via market purchase grew 2.2-fold from 2015. Foreign trade contributes more to economic growth in China. It has created about 180 million jobs. In 2019, the net export of goods and services contributed 11% to economic growth in 2019 and effectively ensured balance of international payments.

China’s position as a major recipient of foreign investment is strengthened. The amount of paid-in foreign investment in China continued to increase steadily. Against the backdrop of chronically flat global investment flows, China bucked the trend and became the second largest recipient of FDI in 2017. Between 2016 and 2019, China attracted US$549.6 billion of foreign capital. The structure of paid-in investment is optimized. FDI flowing to the high-tech industry registered an average annual growth rate of 23.9% from 2016 to 2019 and accounted for 27.7% of the total in 2019, 15.5 percentage points higher than in 2015. About 1/5 of the R&D investment of large industrial companies nationwide is made by foreign-invested enterprises. China has become an increasingly attractive destination for foreign companies as it continued to move up the Ease of Doing Business rankings. In particular, China has made a major strategic achievement in fighting COVID-19 and taken the lead in the world in both epidemic control and economic recovery, becoming a magnet for production factors and resources worldwide. Foreign investment plays a remarkable role in driving economic growth by contributing to 2/5 of foreign trade, 1/6 of tax revenue and nearly 1/10 of job creation in cities and towns.

China’s role as a major outbound investor is stable. With orderly development in its outbound investment, China sees strengthening capabilities in global resources allocation. From 2016 to 2019, China’s outbound direct investment totaled USD 634.4 billion, ranking first worldwide. As of the end of 2019, China has established 44,000 companies in 188 countries and regions. Investment structure is more balanced with a focus on leasing and commercial service, manufacturing, and wholesale and retail. In 2019, manufacturing accounted for 14.8% of the investment as global industrial layout further optimized. International competitiveness has risen significantly. In 2020, with 117 Chinese mainland companies included in the Fortune Global 500 list and 74 listed as ENR’s Top 250 International Contractors, China is leading the world in terms of both the number of companies listed and market shares. Economic and social benefits are clearly on show. From 2016 to 2019, through foreign investment cooperation, Chinese businesses drove exports worth over USD 500 billion. As of the end of 2019, going global companies had over 2.2 million foreign employees. Some of the projects have filled local industrial gaps, promoting local development.

Measures to develop an open economy are effective

During the 13th Five-year Plan period, we pushed for the implementation of a series of new open-up measures. In particular, in response to the pandemic, we have done what we can to stabilize foreign trade fundamentals and brought the development of an open economy to a new level.

We have deepened Belt and Road trade and economic cooperation. President Xi Jinping emphasizes the need to uphold the philosophy of open, green and clean development under the principle of consultation and construction for shared benefits to meet the goals of high standards, people’s livelihoods and sustainability, and achieve quality development of the Belt and Road. We have continuously deepened practical cooperation for the Belt and Road initiative to go deep, steady and far on a solid basis. From 2016 to 2019, China’s imports and exports with Belt and Road countries totaled USD 4.6 trillion, accounting for 29.4% of foreign trade, while direct investment in these countries rose to 13.7% at USD 72.1 billion. We have cultivated and ensured the success of key projects, with a batch of profitable projects with strong spillover effect taking root, promoting connectivity and local economic development. Through continuous development, overseas economic and trade cooperation zones are showing stronger concentrating and radiating effect. We have improved economic and trade cooperation mechanism platforms by conscientiously implementing the economic and trade deliverables of the Belt and Road Forum for International Cooperation and the eight major initiatives of the FOCAC, setting up SCO economic and trade cooperation demonstration zones, with over 90 bilateral trade and investment working groups established and third-market cooperation documents signed with 14 countries. To tell the BRI story, we have published the book series Shared Dreams. With over 20 million on-line clicks, it has become a calling card communicating the vision of a community of shared future for mankind and the achievements of Belt and Road development.

We have promoted high-quality development of trade. President Xi Jinping stresses consolidating traditional advantages in trade, fostering new competitive edges and widening the scope for trade development. We have accelerated the gearshift and restructuring of trade with emphasis on the quality of trade. We have driven deep the five optimizations in international market layout, domestic regional distribution, product mix, operating entities and trade modes, and expedited the development of trade transformation and upgrade bases, trade promotion platforms and international marketing systems. We have strengthened science and technology innovation, institutional innovation and model and business type innovation for trade, with the number of crossborder e-commerce comprehensive pilot zones increased to 105 and that of market procurement trade, to 31 alongside deepening pilot for the innovative development of trade in services. We have continuously expanded the imports of quality products closely linked to people’s life, increased imports of technology and equipment that help transformation and upgrade, and encourage the imports of producer services, effectively promoting domestic industrial and consumption upgrade. While encouraging businesses to explore the international market, we fully leverage our hyper-scale market in support of marketable exports exploring domestic markets to better connect domestic and international markets.

We have pushed for coordinated development of two-way investment. General Secretary Xi Jinping stressed the importance to “give equal emphasis to ‘bringing in’ and ‘going global’,” and to “form globally-oriented networks of trade, investment and financing, production, and services.” We improved two-way investment by pursuing high quality in both “bringing in” and “going global.” In deepening administrative and institutional reforms, we have cancelled case-by-case review for foreign investment, fully implemented the management system of pre-establishment national treatment plus a negative list, improved policies and services for outbound investment promotion, and optimized communication and service platforms, as well as joint meeting mechanisms for overseas Chinese enterprises and business associations. In expanding market access for foreign investment, the national and free trade zone negative lists have been reduced to 33 and 30 items respectively. The manufacturing sector has been basically opened up, and the opening of finance and other areas of the service sector have notably accelerated. In optimizing the business environment, we have firmly implemented the Foreign investment Law and its matching regulations, fostering a reassuring and enabling environment for foreign investors. We have also created new ways of outbound investment and encouraged capable and credible Chinese businesses to “go global”, setting good examples for Chinese investors.

We have accelerated the development of new opening-up platforms. General Secretary Xi Jinping highlighted the need to “encourage bold trials and experiments in pilot free trade zones and quicken the development of the Hainan Free Trade Port as pacesetters of opening-up in China.” He also pointed out that China International Import Expo (CIIE) should pursue “good performance, good results and continued success.” We have accelerated the development of new opening-up platforms. We have set up 21 pilot free trade zones across China, which enjoy greater autonomy in reforms. They have played as a pilot ground, experimenting with 260 institutional innovations that have been applied nationwide. In implementing the master plan for Hainan Free Trade Port, we have highlighted trade and investment liberalization and facilitation, and sped up efforts to develop it into a free trade port with Chinese characteristics. In national economic and technological development zones, we have stimulated innovation in opening-up, science and technology and institutions, and improved international cooperation and economic development. We have fully leveraged CIIE as a platform for international procurement, investment promotion, people-to-people exchanges, and open cooperation. This world-class exhibition has become a milestone for opening-up in the new era. The China Import and Export Fair and China International Fair for Trade in Services, presented by innovative means, have become more and more influential internationally.

We have played an active role in global economic governance. General Secretary Xi Jinping called for “an active part in reforming and developing the global governance system.” We have been deepening multilateral and bilateral economic and trade cooperation, and working to enhance the international economic governance system. As a staunch supporter of the multilateral trading system, we have been engaged in reforms of the World Trade Organization and proposed China’s reform recommendations. In expediting the development of a global free trade zone network, we have signed 17 free trade agreements with 25 countries and regions, concluded the negotiations of the Regional Comprehensive Economic Partnership, and advanced negotiations of the China-Japan-ROK Free Trade Zone and the China-EU investment agreement. In enabling global governance platforms, we have strengthened cooperation with the United Nations, kept outspoken on occasions including G20, APEC, BRICS, and SCO, and expanded sub-regional cooperation such as Lancang-Mekong cooperation, offering China’s proposals and approaches. In the global prevention and control of COVID-19, we have emerged as a responsible major country by providing 283 batches of medical assistance to 150 countries and dour international organizations, offering and exporting medical supplies to more than 200 countries and regions, and ensured the security and smooth operation of global industrial and supply chains.

Inspiration from the development of an open economy

During the 15th five-year period, we kept innovating opening-up theories, improving opening-up institutions, forging ahead with opening-up endeavors, and accumulated valuable experience from developing an open economy.

We stay committed to the full leadership of the Party. Bearing in mind the broader picture of the rejuvenation of the Chinese nation and profound changes of the world unseen in a century, the CPC Central Committee with President Xi as its core set the general direction for future development, rolled out policies and reforms, and introduced significant plans to pursue higher level of opening-up, promote high-quality Belt and Road cooperation, and stabilize fundamentals of foreign trade and investment. These efforts have politically solidified our opening-up endeavors.

We stay committed to the people-centered approach. We endeavor to respond to people’s aspiration for a better life, ensure and improve living standards through opening-up and development, and focus on addressing the pressing needs of the people. We strive to enhance our people’s sense of fulfillment and happiness through promoting higher level of opening-up, facilitating consumption upgrade, creating more jobs, engaging in the fight against poverty, and advancing regional coordinated development.

We stay committed to the open development philosophy. Open development is an integral part of the new development philosophy. Pursing reform and development through opening-up holds the key to our continuous development progress. We remain steadfast in a more positive and active opening-up strategy, and deepen reform by opening up wider, which in return further drives reform forward. By doing so, we boost, invigorate and diversify the development of economy and society.

We stay committed to mutual benefit and win-win cooperation. China cannot develop by shutting itself from the world, nor can the world prosper by shutting out China. Our commitment to opening-up while pursing greater development and our active engagement in advancing economic globalization have enabled us to develop further, provide more market, investment and growth opportunities for other countries, strengthen South-South cooperation, contribute to the world’s poverty reduction endeavors, and push forward win-win cooperation and common development through our concrete actions. All these efforts have been widely supported by the international community.

We stay committed to a balanced perception of development and security. The wider we open to the rest of the world, the more we need to pay attention to security and strike a balance between development and security. We pursue a holistic approach to national security, maintain independency while advancing opening-up, improve the guarantee system for opening-up and security, enhance our capabilities of risk prevention and open regulation, and draw a security line for the development an open economy.

The 14th five-year period unveils China’s new journey of realizing socialist modernization on the basis of finishing the building of a moderately prosperous society in all respects. We must remain committed to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, make more efforts to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment. We must strengthen our confidence in the path, theory, system, and culture of socialism with Chinese characteristics. We must resolutely uphold General Secretary Xi Jinping’s core position on the Party Central Committee and in the Party as a whole, and resolutely uphold the Party Central Committee’s authority and its centralized, unified leadership. We should continue to apply the new development philosophy, work for high-quality development, stay true to the vision of people-centered approach, and pursue higher level of opening-up in all respects. We should strive to foster a new, dual-cycle development architecture with the domestic cycle as the mainstay and with domestic and international development reinforcing each other, so as to contribute to a good start on the overall building of a modern socialist country.