'Improving market access' guideline for improving business environment

Editor's note: Masuda Khatun, a special commentator on current affairs for CGTN, is an international affairs analyst and freelance columnist. The article reflects the author's opinions and not necessarily the views of CGTN.

China recently released a groundbreaking guideline aimed at enhancing China's market access system in order to create a more equitable, transparent, standardized, well-regulated, rules-based, and orderly market system as well as a favorable business environment. The guideline is based on practical policy recommendations for enhancing market access that were deliberated upon during the momentous third plenary session of the 20th Central Committee of the Communist Party of China. The Chinese leadership made it plain that they would improve the system of market access and eliminate more barriers.

Enhancing market access is fully consistent with China's ongoing reforms, opening-up, and commitment to free trade liberalization, wherein the Chinese government is making every effort to increase foreign investors' and companies' trust in the potential of the nation's traditional and emerging sectors. China has never been behind schedule in opening its markets, even in this era of the world's emerging industries. As market access is being increased and a world-class business environment is being developed, concepts such as new quality productive forces brought about by Chinese modernization will be shared with the globe, accelerating global recovery and growth. This will result in a tech revolution in the global development of emerging sectors.

In light of the fact that trade protectionism, trade bullying and current geopolitical unrest caused by some Western countries are contributing to the disruption of global supply chain stability of green and tech products and that technological advancement and tougher competition are creating a new world economy, local and international businesses are applauding the Chinese government's efforts that emphasize the need to improve market access as a means of addressing these issues.

In order to optimize the market environment for emerging industries, such as deep-sea research, aerospace, aviation, healthcare, new energy, and artificial intelligence, China will detail precise implementation strategies, as per the guideline document. Improving market accessibility can encourage the emergence of new, high-caliber labor forces, reduce barriers to scientific and technological advancements, and draw in more foreign capital. International companies have already begun to express interest in this more favorable economic climate.

Under its "Industry 4.0" initiative, the Chinese government has been advancing the development of robotics, AI and automation systems. This encourages factory operators to combine data analysis with digital technology, e-commerce, and the digital economy. The guidelines will expedite the high-quality consumption of state-of-the-art technical items, optimize the business environment, and further encourage the formation of new quality productive forces.

The guideline will not only significantly increase confidence in the Chinese market and China's dedication to enhancing the business climate and broadening high-level access for international companies, but it will also spur greater business activity because the market will be fairly competitive, market access restrictions in the services industry will be gradually removed, property rights will be upheld, and negative lists will be shortened.

It is important to note that China is always working to improve the negative list management mechanism. China will keep pushing for a high-level opening-up in order to share with the rest of the world the new prospects that the country's modernization has brought about.

The guideline serves to guarantee equitable competition between local and foreign enterprises and stabilizes market expectations from international businesses by prohibiting local levels from writing any additional laws or specific negative lists in this respect. In order to enhance the Chinese market's efficiency, fairness, vibrancy, competitiveness and creativity, the guideline will play a pivotal role in driving China's industrial transformation, elevating its capacity for high-quality production, and advancing its innovative capabilities.

For international businesses, the removal of entrance restrictions in the manufacturing industry is a huge step. A variety of international market entities will be encouraged to enter and fairly compete in industries that will boost vitality, which is crucial to attracting foreign investment into the Chinese market. Furthermore, China is a market that is difficult for international businesses to abandon due to its sizable economy, developed industrial environment, and growing middle-income group.

The guideline stated that market entry standards for sectors such as elderly care, nursing, and services for people with disabilities should be optimized and that market entry restrictions for industries or sectors related to people's livelihoods, like sports, healthcare, and education, should be cautiously relaxed. Pragmatism is demonstrated by the expansion of these industries' capacity for growth as well as by the improvement of people's quality of life. As a result, more domestic and foreign companies will be eager to enter these markets and willing to boost their investments to take advantage of the growth momentum.

In the process of reviving investor confidence and igniting long-term growth momentum, efforts to create a unified domestic market will not only establish a high-standard socialist market economy but also encourage new sources of foreign investment and trade, stabilize the overall performance of foreign capital and trade, and broaden the scope of trade in goods and services.

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