he year of 2018 has witnessed a rising tide of trade protectionism globally. But the fact remains that no country can single-handedly tackle the various challenges that confront humanity.
This year marks the 40th anniversary of China’s reform and opening-up endeavor, which has proven to be the only way for the country to achieve economic development and social progress. In both words and actions, the Chinese government has honored its promise to keep opening up the country to the world.
China has launched substantial measures this year in a move to relax entry for foreign investors, particularly in the financial sector. It is expected that foreign investors in banking, securities and insurance will soon be able to own larger shares in joint ventures and expand the scope of their businesses in the Chinese market.
Shanghai, which reported more than 85 percent of China’s total direct financing in 2017, has led the opening-up of China’s financial sector. Effective supply-side reforms have enabled the city to foster an open economy. In return, its growth has allowed the city to expand and deepen its opening-up.
Breakthroughs have come in Shanghai where relaxed restrictions have seen the world’s largest insurance group co-invest in a new insurance assets management company.
In addition to opening up the market, Shanghai’s municipal government has also strived to improve its business environment, seeking to provide good services for foreign investors. Among these efforts, the Shanghai government has simplified administrative approvals and tightened up legal protection for foreign companies and investors.
The municipal government is also stepping up efforts to support the regional headquarters of international companies in taking up global functions, and to encourage foreign R&D centers to join the city’s mission to become the nation’s center for technological innovation.
China’s growth is an opportunity for the world. China has benefited from globalization and will stay committed to contributing to it. Opening up the financial market is China’s response to globalization as well as an answer to the country’s own development needs. As the vanguard of China’s opening-up endeavors in the financial area, Shanghai will keep exploring new solutions.