China's 14th Five-Year Plan: How opening up boosts economy

2025 marks the final year of China's 14th Five-Year Plan (2021-2025), with preparations for the 15th Five-Year Plan (2026-2030) already underway. A key goal outlined in the 14th Five-Year Plan is the pursuit of broader, deeper and more comprehensive opening up, with the aim of establishing a new system for a higher-level open economy.

At a symposium held in Shanghai in April, Chinese President Xi Jinping emphasized the importance of opening up when drafting the next five-year development plan.

He told senior officials from seven provincial-level regions: "We must unswervingly manage our own affairs well, and stay committed to expanding high-standard opening up." 

During the past five years, China has rolled out a slew of policies and measures to expand opening up, which have boosted not only its own economic development but also contributed to global economic growth.

Steady progress in opening-up measures

China has steadily reduced its foreign investment negative list over the past several years. As of January, the list was cut from 93 items to 29. In the manufacturing sector, all foreign investment restrictions were lifted on November 1 last year, and in services, sectors such as telecommunications, internet, education, culture and healthcare are gradually being opened.

As a landmark gesture of opening up its service sector, China, in October last year, launched pilot programs to expand foreign access to value-added telecommunications services in Beijing, Shanghai, Hainan and Shenzhen. By March this year, 13 foreign enterprises had been approved to operate in this field. When China joined the World Trade Organization, the country committed to opening four of the organization's 10 value-added telecom services, and it has now voluntarily expanded this to eight. 

Aside from easing investment restrictions, China has also introduced policies to ensure national treatment for foreign enterprises and further optimize the business environment.

For example, China introduced the Foreign Investment Law in 2019, which has strengthened intellectual property protection and improved operational conditions for foreign firms, creating an equal playing field for foreign companies. Besides, according to the Ministry of Commerce, in 2024 alone, the ministry held 15 roundtable meetings with foreign-invested enterprises, resolving over 370 issues. 

Additionally, initiatives such as the "trade-in" policy for consumer goods, which encourages the purchase of new home appliances, cars and electronics to replace old ones, equally support foreign companies, with many foreign nationals also benefiting from the subsidies.

"China is now advancing high-standard opening up and taking solid steps to expand institutional opening up, such as that of rules, regulations, management, and standards," Xi told over 40 representatives of the international business community in March.

He pledged that "China's door will only open wider. The policy of welcoming foreign investment has not changed and will not change."

Aligning with global trade rules

Beyond improving the business environment for foreign companies, China has also aligned its policies with international trade standards, steadily expanding institutional openness. 

In November 2020, China signed the Regional Comprehensive Economic Partnership (RCEP), which took effect in January 2022. As the largest economy in RCEP, China not only benefits from the agreement but also plays a key role in its implementation.

Under RCEP, China offers an average 92 percent tariff reduction for Singaporean companies and has committed to phasing out tariffs on 86 percent of Japanese industrial products. China has also opened its agricultural market to ASEAN nations, with plans to import $150 billion in agricultural goods over the next five years. In terms of investment, China's non-financial direct investment to RCEP members increased by 26 percent in 2023, outperforming global investment growth.

Furthermore, in September of last year, President Xi announced that China would grant zero-tariff treatment on all tariff lines for the least developed countries with diplomatic relations with China, including 33 countries in Africa. China is the first major developing country and the first major economy to take such a step.

"China will not close its door to the world, and it will only become more and more open," Xi has said on many occasions. He has stressed that an open China will inject more vitality and momentum into a turbulent world, and create more development opportunities for countries embracing cooperation.