South China Sea boycotts do not represent the country’s stance on an open market

By Hu Weijia Source:Global Times Published: 2016/7/18 23:53:00

Some people in North China's Hebei Province, joined boycott campaigns against US fast food chain KFC over the weekend, just several days after Chinese vendors boycotted online sales of dried mangos imported from the Philippines.

The new wave of patriotism among Chinese people, triggered by the Philippines-raised South China Sea arbitration and Washington's meddling in the issue, has aroused suspicion of whether China will continue to open its market to the world.

Historically speaking, China has largely benefited by opening up its domestic market and integrating itself into the world economy. But as China's economy matures, is it necessary for the nation to further open up its market to attract more investment from the world?

Furthermore, uncertainty in the global economy has created an atmosphere of trade protectionism in many countries including the US, raising concerns of whether Chinese authorities will turn a blind eye to, or even encourage, these boycotts against foreign-made products to boost its fledgling national industry.

It seems that it is necessary to clarify China's attitude toward foreign investment at this sensitive moment, and we believe the government will not deviate from its route of deepening reform and opening- up simply because of the South China Sea dispute. Following the release of the judgment in the international arbitration over the South China Sea, we have seen little effect on intergovernmental economic communications. The 26th round of bilateral investment talks between the US and China were held in Beijing from July 11 to 17, in which the two sides made progress in various areas.

China's primary strategy is to promote economic and social development. In this regard, China's efforts to integrate itself into the world economy must not be abandoned halfway. After the country's reform and opening-up in 1979, a great number of international manufacturers came to China and built production bases, transforming the nation from an agricultural country to a world factory. But this is only part of the story. Now China is standing at a new starting point with the ability to support domestic enterprises investing overseas, a move requiring Chinese leadership to call for reciprocity in access and improved trade and investment liberalization between China and other countries in the world.

Additionally, as the economy faces increasing downward pressure, the participation of foreign enterprises, some of which have advanced technology and management experience, is needed in China's efforts to push forward its economic restructuring to pursue sustainable development. Chinese Premier Li Keqiang said on June 28 that China still needs foreign enterprises and the government will continue to ease market access for overseas investment to build an environment for fair competition.

It seems unlikely with those words ringing in our ears that the government will turn a blind eye to the boycotts if such civil actions hinder the process of China's economic expansion. Despite broad challenges the country faces as it pushed toward its globalized economy, such efforts cannot be allowed to stop or go backward.

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



Posted in: Eye on The Economy

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