China is moving forward with a series of reforms aimed at further integrating its economy into the global market. During the 20th Third Plenary Session of the Communist Party of China, held from July 15 to July 18, 2024, more than 300 reform measures were introduced. According to Peking University’s INSE experts, Professor Xu Mingzhi and Dr. Sun Jingyi, these new policies are set to enhance market transparency, boost competitiveness, and provide a more predictable business environment in China, with stronger protections for foreign enterprises. These changes are likely to create fresh investment opportunities, particularly in sectors like green energy.
Professor Xu notes that these reforms will align China’s regulations more closely with international standards, particularly in property rights, environmental regulations, labor protections, and government procurement. This alignment is expected to reduce the legal risks and uncertainties for U.S. businesses, fostering a fairer and more competitive market. As a result, the improved business environment could draw more U.S. investment and boost profitability for U.S. enterprise.
He further added that new policies seek to ensure fair treatment and rights of foreign enterprises in China. Under these reforms, foreign enterprises will be granted national treatment in terms of access to production factors, license applications, standard-setting, and government procurement. Additionally, measures will be implemented to improve convenience for foreigners living and working in China. Xu believes that these steps will help remove various obstacles to U.S. companies’ investments and operations in China, including reducing transaction costs and administrative barriers, thereby enabling them to conduct business more effectively.
Xu also pointed out that restrictions on foreign investment will be significantly eased, including the removal of market access barriers in the manufacturing sector. These reforms open up new opportunities for deeper cooperation between China and the U.S., particularly in areas such as green energy, AI, and semiconductors. With greater access to the Chinese market, U.S. companies can expand their presence in China. For example, while the U.S. is building its own solar panel manufacturing supply chain, China’s cost advantages and extensive experience in this area offer significant benefits. Enhanced collaboration between the two countries will not only help the U.S. acquire essential technological expertise, but also expand its supplier network and attract more investment, thereby reducing manufacturing costs,
Trade data from the first quarter of 2024 shows that green energy and AI productstrade have grown much faster than other industries. Moreover, the demand for electric vehicles, solar panels, batteries, and high-end semiconductors is expected to keep rising across many countries. Based on these trends, Xu believes that if China and the U.S. can deepen their cooperation in these areas, it could become a powerful driver for global sustainability and trade growth.
Dr. Sun emphasized that as 2024 marks the 45th anniversary of China-U.S. diplomatic relations, these reforms signal a bright future for economic and trade cooperation. Following the Third Plenum of the 20th Central Committee, the US-China Business Council and the China Council for the Promotion of International Trade organized reciprocal visits involving entrepreneurs from both sides. These visits clarified the new policies and demonstrated the willingness for ongoing cooperation.
