In 2024, the Chinese mainland marked significant milestones in deepening reform and opening up, charting a new course toward Chinese modernization. The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) set the tone for comprehensive reforms, emphasizing the nation’s commitment to high-quality development and global engagement.
Throughout the year, President Xi Jinping underscored the importance of reform as the driving force for development. During his inspection tours, including a symposium in Shandong Province in May, Xi highlighted the necessity of focusing efforts on improving and developing the socialist system with Chinese characteristics and modernizing China’s governance.
Ambitious Reform Measures
In July, the depth and breadth of China’s reforms were outlined in a comprehensive resolution featuring 60 clauses and over 300 measures, spanning economic, political, cultural, social, and national security sectors. These reforms were swiftly implemented following the plenary session, signaling China’s determination to enhance its economic landscape.
Key initiatives included the drafting of the private sector promotion law by the Ministry of Justice and the National Development and Reform Commission (NDRC) to support the development of the private economy. The NDRC also introduced measures to relax market access and established guidelines for constructing a unified national market.
Addressing Economic Challenges
Facing a complex international environment and domestic economic adjustments in the first half of 2024, China responded with timely macroeconomic policies. The government increased local government debt quotas to replace hidden debt, eased real estate regulations, and directed capital into markets to support struggling businesses.
In November, lawmakers approved a State Council bill to raise the ceiling on local government debt by 6 trillion yuan (approximately $840 billion), aiming to replace existing hidden debts and stimulate economic growth. These policies have started to yield positive results, with increased consumer demand, more active stock and real estate markets, and improved business expectations in the fourth quarter.
Expanding Foreign Trade Drivers
During an inspection tour in Anhui Province in October, Xi Jinping called for efforts to attract foreign investment, stabilize its flows, and foster new growth drivers in foreign trade. In response, China introduced policies to strengthen financial support for international trade businesses, promote e-commerce and green trade, and enhance services such as favorable visa policies for businesspeople.
China’s major trading partners increased to over 150 countries and regions this year. According to the General Administration of Customs, the country’s total goods imports and exports expanded to 39.79 trillion yuan ($5.6 trillion) in the first 11 months, representing a 4.9 percent year-on-year increase.
Further opening up included reducing the number of items on China’s negative list to 29, removing all market access restrictions for foreign investors in the manufacturing sector, and widening access in telecommunications, education, culture, and healthcare. The establishment of wholly foreign-owned hospitals in nine cities and fully foreign-owned businesses in data centers and online processing demonstrates China’s commitment to openness.
Additionally, China offers zero-tariff treatment for all least developed countries with which it holds diplomatic relations, reinforcing its role in promoting global trade and economic development.
China’s comprehensive reforms and commitment to opening up in 2024 highlight its strategic efforts to modernize its economy and governance, adapt to global standards, and foster mutually beneficial international relationships. As China continues on this path, it sets the stage for sustained growth and increased cooperation on the global stage.
Reference(s):
China in 2024: Major progress in deepening reform and opening up
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