China in 2024: Major progress in deepening reform and opening up

Editor's note: CGTN presents "China in 2024," a special series that takes an in-depth look at the country's progress in improving livelihoods, high-quality development, deepening reform and further opening up, sci-tech innovation, cultural development and ecological conservation, as well as its diplomatic achievements.

China's mission to comprehensively deepen reform in the new era continued apace in 2024, with the third plenary session of the 20th Central Committee of the Communist Party of China (CPC) kickstarting a new chapter in the new journey to promote Chinese modernization.

During his inspection tours this year, Chinese President Xi Jinping has repeatedly stressed the need to further comprehensively deepen reform across the board.

In Shandong Province in May, Xi chaired a symposium attended by representatives from local businesses and academia. "Reform is the driving force for development," Xi said, noting that to deepen reform further on all fronts, efforts should be focused on the overarching goals of improving and developing the socialist system with Chinese characteristics and modernizing China's governance system and capacity.

Over 300 measures

The depth and breadth of China's reform in 2024 was outlined in a resolution on further deepening reform comprehensively featuring 60 clauses and over 300 measures, spanning from economic, political, cultural and social issues to national security and the defense and military sectors, that was approved at the third plenary session of the 20th CPC Central Committee in July.

After the plenary session, moves to swiftly implement the measures began. China's Ministry of Justice and the National Development and Reform Commission (NDRC) published a draft of the private sector promotion law to solicit public opinion in October. If passed, it will be China's first foundational law specifically focused on the development of the private economy.

Meanwhile, the NDRC introduced a batch of special measures to relax market access and formulated guidelines for the construction of a unified national market.

"Today, the requirements for reform and opening up, both in depth and breadth, are higher than ever before," Xi pointed out when inspecting Fujian Province in October.

He urged efforts to adapt to the changing situation, steadily advance institutional opening up, align with international high standards, and achieve more institutional and policy outcomes to contribute to the expansion of high-level opening up.

In the first half of 2024, China's economy faced challenges due to the complex international environment and ongoing adjustments to the domestic economic structure.

The government responded to emerging economic challenges with timely macroeconomic policies this year, rolling out a series of incremental measures, including increasing local government debt quotas to replace hidden debt, easing real-estate regulations, directing long-term capital into the market and increasing support for struggling businesses.

In November, Chinese lawmakers approved a State Council bill on raising the ceiling on local government debt by 6 trillion yuan (about $840 billion) to replace existing hidden debts. Under this arrangement, the debt ceiling for special local government debt will be increased to 35.52 trillion yuan from 29.52 trillion yuan by the end of 2024.

Also starting from 2024, China has set aside 800 billion yuan from each year's new special-purpose bonds for local governments for five consecutive years, thereby providing debt relief to replace 4 trillion yuan of hidden debts.

The policies have already started to bear fruit. In the fourth quarter, consumer demand has picked up, the stock and real estate markets have become more active, and business expectations have improved.

Fostering new drivers of foreign trade

Xi urged further efforts to attract foreign investment, stabilize its flows, and speed up the fostering of new growth drivers in foreign trade during his inspection tour in Anhui Province in October.

Amid sluggish global trade in 2024, China has introduced a package of policy measures to strengthen financial support for businesses engaged in international trade, foster new trade drivers such as e-commerce and green trade, and enhance services including favorable visa policies for business people.

China's major trading partners have increased from over 140 countries and regions to more than 150 this year, and according to the General Administration of Customs, the country's total goods imports and exports expanded to 39.79 trillion yuan ($5.6 trillion) in the first 11 months of the year, representing a 4.9 percent year-on-year increase.

Meanwhile, the number of items on China's latest negative list, which specifies fields that are off-limits to foreign investors, has been slashed to 29. The country has removed all market access restrictions for foreign investors in the manufacturing sector and vowed to widen market access and advance openness in the telecommunications, education, culture and healthcare sectors.

The establishment of wholly foreign-owned hospitals is now permitted in nine cities, and foreign investors are also allowed to operate fully owned businesses in other areas, including data centers and online data processing.

China also offers zero-tariff treatment for 100 percent tariff lines to all the least developed countries with which it holds diplomatic relations.

(The podcast is presented by Wang Mangmang.)