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- China’s greatest risk is not opening up the market to foreigners - government researcher
China’s greatest risk is not opening up the market to foreigners - government researcher
China's biggest risk lies in keeping the local market closed to foreigners, a government research fellow said.
Trade tensions with the U.S. have put pressure on China to respond to long-standing complaints that key local industries are off-limits to foreign companies, and that domestic players have an unfair advantage in China's state-controlled economy. Authorities rushed to pass a new foreign investment law in March. About six months later, regulators announced that foreign companies can take full ownership in key parts of the financial industry at least a year earlier than expected. The new measures roll out Jan. 1, which is also the effective date of the foreign investment law.
"Regarding the risk of opening up to the outside, I think not opening up is the greatest risk," Zhao Jinping, a fellow at the Development Research Center under the State Council, told.
Zhao noted a worrisome backdrop of economic uncertainty worldwide and fears of a split in global technological systems between China and the U.S. Increased protectionism against Chinese companies also poses a big risk for their development, Zhao added.
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