Economic Watch: China's new development roadmap offers world bigger gains with wider opening up

BEIJING, Oct. 31 (Xinhua) -- As the world navigates a complex economic landscape fraught with chaos and uncertainties, many are turning their eyes on China's in-the-making 15th Five-Year Plan (2026-2030).

The plan, which is poised to steer the world's second-largest economy toward high-quality growth, is far more than just a domestic blueprint, but will also unlock vast new opportunities for the world.

FURTHER OPENING UP

The recommendations document for formulating the 15th Five-Year Plan, adopted at the recent fourth plenary session of the 20th Communist Party of China Central Committee and made public this Tuesday, sends a clear message that China will deepen its opening up with concrete steps, including expanding market access, pursuing balanced development of imports and exports and fully implementing national treatment for foreign-funded firms.

China's opening up commitment is clearly reflected in recent developments. The total number of items on the negative list, or restricted sectors for foreign investment, has been reduced from 40 items in the 2019 version to 29 in the 2024 version.

All restrictions on foreign access to the manufacturing sector have been lifted, and additional liberalization measures have been implemented in agriculture and services.

This improving business environment has encouraged multinationals to deepen their roots in China. PHINIA Inc., a global leader in fuel systems, has invested over 500 million U.S. dollars over the past decade in Yantai, Shandong province.

"To invest in Shandong is to invest in the future; to put down roots in China is to embrace the trend of the times," said Simon Godwin, vice president of government affairs at PHINIA, adding that the company will expand its clean energy investments in China while maintaining its traditional strengths.

Kevin Sun, co-founder and CEO of Key Group (Key Holding and Key Capital), noted a strong resonance between the new five-year plan's development strategy and the group's core business operations in China.

"This presents a structural opportunity for our group," Sun said. A prime example is its Hainan-based private-equity arm, which concentrates on new energy, eco-tech and AI -- sectors that will most likely sit at the very heart of the plan's push for strategic emerging industries.

Other global companies, including Apple, Goldman Sachs and Pfizer, have also reiterated their commitment to the Chinese market, underscoring confidence in the country's long-term economic prospects.

The confidence established within the international business community was further bolstered by the new and exciting opening-up pledges from the Chinese government.

Last Friday, Chinese Minister of Commerce Wang Wentao outlined some new initiatives for the next five years, with a focus on opening up the services sector. The measures include expanding pilot programs in value-added telecommunications, biotechnology, and wholly foreign-owned hospitals, and further opening up the education and culture sectors in an orderly manner.

Wang added that China will accelerate the advancement of regional and bilateral trade and investment agreements, and expand its network of high-standard free trade zones, while pledging to "polish the brand of investing in China" and create a transparent, stable and predictable business environment.

"China's high-standard opening-up, characterized by its voluntary and unilateral measures, will inject much-needed certainty into a global economy facing growing uncertainties," said Chi Fulin, head of the China Institute for Reform and Development.

ALLURE OF CHINESE MARKET

Beyond its open door, China's immense domestic market of over 1.4 billion people continues to be a powerful magnet for global businesses. Products once considered rare luxuries -- such as Malaysian durians, Chilean cherries, and New Zealand milk -- have become everyday purchases, reflecting the growing affluence of Chinese consumers and their desire for an improved quality of life.

This expanding demand is expected be further strengthened over the next five years. As outlined in the recommendations document, China will make greater efforts to boost domestic demand and raise living standards, paving the way for foreign businesses to tap into this enormous market.

Demographic momentum will also play a key role. With the middle-income group projected to exceed 800 million in the next decade, consumption potential is enormous.

Raising the share of service consumption in total household spending from 46.1 percent in 2024 to 55-60 percent by 2035 could generate approximately 40 trillion yuan (about 5.6 trillion U.S. dollars) in new consumer demand, Chi said, citing preliminary estimates.

"Unlike the largely saturated consumer markets in many developed economies, China's burgeoning service consumption market will become a global proving ground and application field for innovation, creating significant new value for businesses worldwide," he noted.

On the industrial front, China's rapid advances in fields from AI and quantum computing to new-energy vehicles and biomedicine are creating expansive market space and cooperation prospects for global capital, technology, goods, and services. This progress is poised to not only meet domestic needs but also facilitate industrial upgrading worldwide.

Kevin Sun of Key Group observed that China is in the critical sprint phase of its modernization journey and will basically realize modernization within the next decade.

"This process will unleash a wave of innovation, industrial demand, and consumption potential, continuously generating the world's most attractive investment and partnership opportunities," he said. ■