China's opening-up sends positive signal: Analysts

As global trade rules weaken, experts say China's continued commitment to opening up its market sends a positive signal to the world economy amid uncertainties.

In the Government Work Report submitted on Thursday to the country's top legislature for deliberation, it was said that China will open wider to the outside world, with efforts to expand market access and open up more areas, particularly in the services sector.

Seo Chang-bae, honorary president of the Korean-Chinese Association of Social Science Studies and a professor of Chinese studies at Pukyong National University in South Korea, welcomed the move.

"Considering that the global economy is facing significant uncertainty due to the weakening of the World Trade Organization, the announcement by the Chinese government to further expand market opening will have a positive impact on international economic cooperation and global supply chain stability," Seo said.

Speaking highly of China's plan to expand high-standard opening-up, he said the opening-up trials for value-added telecom services, biotechnology, wholly foreign-owned hospitals, and the push to join the Digital Economy Partnership Agreement are particularly noteworthy.

The agreement is a trade pact aimed at facilitating digital trade and enhancing digital connectivity among members. It currently comprises Chile, New Zealand, Singapore and South Korea. China submitted its application to join the agreement in 2021.

While Seo views China's expanding opening-up as a positive sign, he also said the focus should be on effective implementation to truly generate results.

Suan Teck Kin, head of research and executive director for global economics and markets research at United Overseas Bank in Singapore, said the economic growth target of 4.5 to 5 percent for 2026 set out in the Government Work Report showed China's economic maturity.

Quality in focus

This is no longer about having a strong growth rate but aiming for an "appropriate range" that focuses more on quality, Suan said.

"What we see is that uncertainty (of the global environment) has significantly gone up because all these rules that we know are now being broken and being rewritten," he said.

The external environment has made it challenging for any country, especially one with an economy the size of China, to set a high GDP target and realize it, he added.

The wider opening-up of China also means more opportunities for members of the Association of Southeast Asian Nations, Suan said.

"Most of the ASEAN (countries) are emerging economies, and they need the technology support. They need investment and the infrastructure," he said.

"The demand will be there for businesses to cooperate from both sides."

Suan said he is interested in the proposed pilot opening-up of wholly foreign-owned hospitals because China is pioneering in advanced medical technologies and studies, which will provide room for business cooperation and mutual learning.