Editor's note: Liu Baocheng is the director of the Center for International Business Ethics at the University of International Business and Economics. The article reflects the author's opinions and not necessarily the views of CGTN. 

Since its initiation in 1978, China's "open-door" policy, masterminded by the late Chinese leader Deng Xiaoping, has significantly reshaped the global economic, technological and social landscape. This policy marked China's transition from an insular, centrally-planned economy to one that has actively engaged in global trade and foreign investment, heralding a new era of economic reform that emphasizes openness and international cooperation.

The Communique of the Third Plenary Session of the 20th Central Committee of the Communist Party of China highlighted the ongoing strategic reforms that reinforce high-level opening-up to the world. These reforms aim to refine socialist economic systems, enhance China's unique modern enterprise system, and advance regulatory frameworks to meet international standards. The emphasis on robust financial regulations and an internationalized, market-oriented and law-based business environment is crucial for attracting and sustaining foreign investment.

Contribution to global growth

China's integration into the global economy has significantly driven worldwide economic growth. The establishment of special economic zones, high-tech zones and free trade zones has attracted foreign direct investment and technological advancements, helping transform China into a "global factory" with sophisticated industrial clusters. This has facilitated a surge in the manufacturing of goods ranging from basic commodities to high-tech electronics and electric vehicles (EVs), substantially contributing to global economic dynamism by maintaining low global inflation and optimizing multinational production and supply chains with one-third of the finished goods designated toward the global marketplace.

The ripple effects of China's economic policies have markedly improved livelihoods globally. Domestically, the policy has lifted hundreds of millions out of poverty, while internationally, it has boosted economies in the Global South by massive reductions of customs tariffs and streamlining entry procedures into Chinese markets. Technologically, China has significantly contributed to the global dispersion of technology through initiatives like joint ventures, which have fostered a robust Chinese tech industry and led to global innovations in fields such as telecommunications and e-commerce.

Commitment to climate change

China's commitment to a green transition is significantly shaping global efforts to combat climate change through its expansive and multifaceted contributions. As the world's leading producer of solar and wind energy, China's aggressive expansion in these sectors is part of a broader strategy aimed at reducing reliance on coal – a major source of pollution and greenhouse gas emissions. 

Since 2022, China's renewable energy generation has surpassed the hallmark of trillion kilowatt-hours, with a year-on-year increase of 21 percent. Furthermore, China's investment in EVs and the development of high-speed rail networks not only aims to dominate the global EV market but also to reduce urban air pollution and offer greener alternatives to traditional modes of transport, substantially decreasing carbon emissions.

On the policy front, committed to the carbon peaking and neutrality goals with a fixed timeline, China has introduced a national carbon trading scheme poised to become the world's largest, which encapsulates a market-based approach to controlling pollution through emission caps and permits. This has been complemented by green finance initiatives that mobilize capital for sustainable development projects, supporting the transition to a low-carbon economy.

However, challenges persist, particularly in balancing rapid economic growth with environmental sustainability, amid ongoing concerns about coal consumption and the environmental impacts of some international projects. These efforts and challenges underscore China's pivotal role in global environmental governance and its critical impact on the planet's ecological health as it advances its green initiatives.

E-commerce and digital advancements

China's e-commerce giants like Alibaba, JD.com, and Pinduoduo have revolutionized both domestic and global e-commerce landscapes, pioneering business models that have been adopted worldwide. These platforms have facilitated cross-border trade and empowered small and medium-sized enterprises globally by providing them with access to international markets without substantial initial investments. Additionally, advancements in digital payments and logistics driven by China's e-commerce demand have set benchmarks for global practices in these fields.

Financial stability through international cooperation

China's contributions to global financial stability are evidenced through its initiation and leadership in the founding of Asian Infrastructure Investment Bank and the New Development Bank, and its establishment of currency swap arrangements. These initiatives have provided critical funding for infrastructure development and economic stabilization, promoting global economic integration and cooperation. Moreover, the Silk Road Fund, aimed at financing projects under the Belt and Road Initiative, has highlighted China's role in fostering international economic development and interconnectivity.

Capacity building and cultural exchange

Capacity building is the cornerstone for sustainable development, particularly for countries in the Global South. An often-overlooked benefit of China's open-door policy is its enhancement of cultural and educational exchanges, largely sponsored by Chinese scholarship. These exchanges have not only fostered a better global understanding and collaboration but have also facilitated a cross-pollination of ideas through increasingly integrated Chinese educational institutions, which have attracted international students and scholars.

Profound legacy of China's open-door policy

The legacy of China's open-door policy is profound, underpinning the nation's pivotal role in shaping the modern global economy and contributing to international development and stability. As China continues to navigate the complexities of global economic and political landscapes, its commitment to reform and openness remains crucial. While challenges persist, the policy's foundational role in fostering economic growth, technological innovation and global cooperation continues to impact the world significantly, making it one of the 20th century's most transformative economic reforms. As the world progresses, it will continue to engage with the benefits and opportunities introduced by China's monumental shift toward openness and integration into the global community.