Opening-up is irreversible path to China's economic future and technological rise

By Hu Weijia Source:Global Times Published: 2018/12/17 20:58:06

As China celebrates the 40th anniversary of reform and opening-up, doubts have arisen about how far down the same path the nation is willing to go in the future.

President Xi Jinping will attend a conference celebrating the 40th anniversary of China's reform and opening up, scheduled for Tuesday morning in Beijing, according to the Xinhua News Agency. The reform and opening-up policy is root of all of China's economic achievements over the past four decades, allowing the country to integrate into the global value chain. In the era of reform and opening-up, Chinese technology companies have been firmly linked to global value chains. Huawei has more than 30 core suppliers in the US, besides dozens of suppliers in countries like Japan, Germany and South Korea. On the one hand, such value chains link Chinese companies to enterprises from various countries in global production networks; on the other, these chains integrate the Chinese consumer sector into the global economy.

China has 10 times more cell sites to support 5G communications than the US, per a report by consultants Deloitte in August. China will be a huge business opportunity for the world if the country further opens up its digital economy to foreign investment. Technology companies do not want to miss any opportunities. The global value chains established in the telecom industry represent a hard-won achievement that can bring tangible benefits to all the economies involved.

China has played an important role in the value chain, where it now is involved in almost all areas in terms of production and markets. If someone tries to separate China from the network, the whole value chain will suffer a fatal blow. The arrest of Huawei CFO Meng Wanzhou is a dangerous sign of threats to the safety of entire industrial chains.

The past 40 years of reform and opening-up have made the country an integral part of the world economy. China's opening-up is an irreversible path along which the country is driving away from its status as an isolated backwater. This is an irreversible process. Although a rise in protectionism in some Western countries has led to a complex external environment, China will stick to the path of opening its markets. Chinese firms will take part in the development of sophisticated technologies, while the government further opens up its market. Every country that serves as a positive force in the global value chain can share the cake of China's future reform and opening-up.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn


Newspaper headline: Opening-up is irreversible path to the nation’s economic future and technological rise


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