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Finance

Top Chinese official pledges more co-operation with the West and signals China is open for business

A top Chinese official has signalled that China is open for business and offered an olive branch to the West saying the country looks forward to working with the rest of the world to enhance global cooperation.

Speaking at the 53rd World Economic Forum in Davos, vice premier Liu He, a close confidant of president Xi Jinping, said “foreign investments are welcome in China, and the door to China will only open up further.”

“We must let the market play the fundamental role in the allocation of resources, and let the government play a better role. Some people say China will go for the planned economy. That’s by no means possible,” he said.

“All-round opening-up is the basis of state policy and the key driver of economic progress. China’s national reality dictates that opening up to the world is a must, not an expediency. We must open up wider and make it work better,” he added.

Liu said China’s focus in 2023 is on expanding domestic demand, keeping industrial and supply chains smooth, supporting the healthy development of the private sector, deepening the reforms of state-owned enterprises, attracting foreign investment and defusing financial risks

He remained confident that China’s growth will most likely return to its normal trend, pointing out that over the last decade, China’s economy has grown from 54 trillion yuan to 121 trillion yuan in 2022.

Echoing the message of president Xi’s Davos speech in 2017, Liu underscored China’s commitment to globalization.

“We oppose unilateralism and protectionism and look forward to strengthening international cooperation with all countries for world economic stability and development, and the promotion of economic re-globalization,” Liu commented.

He affirmed China’s twin goals of achieving peak carbon emissions before 2030 and achieving carbon neutrality by 2060.

“Carbon neutrality is China’s international obligation,” he said. “This is also what China needs in driving internal growth. It is not something imposed on us, but something that we want to do.”

Liu also said the country was returning to normal after the Covid pandemic with dining out, consumption and tourism returning to normal levels.

China has passed the infection peak and people are returning to normal life, he said.

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