As with the former two rounds of China’s process of reform and opening up, the third round - the “Belt and Road” Initiative - has also been launched with a view to reforming the mechanisms of government, said an expert. The government should be retooled to play a stronger service role, instead of an administrative one.
China is in the middle of a third round of opening up - the "Belt and Road" Initiative - according to Wei Jianguo, vice president of China Center for International Economic Exchanges, in an interview with news portal iFeng. The first round - marked by the establishment of Shenzhen Special Economic Zone - brought China into connection with the outside world. The second round was China’s entry into the WTO in 2001, which made China the “workshop of the world”.
The new round is markedly different, according to Wei. During the former two, foreign capital, technologies, management expertise and equipment entered China, but this round is seeing Chinese capital, technology and standards introduced into other countries. The new round covers not just trade, but a wider range of fields, like financial services and infrastructure. Moreover, it aims at integrating Chinese systems and policies with those of other countries, via projects on the ground and building industrial parks.
The new round “is closely related to China’s domestic transformation,” the vice president told iFeng. “Every round of opening up has actually forced domestic reforms, and it’s the same with this round.”
Many foreign companies and private enterprises in China have complained of unfair treatment. To build a level playing field where all have equal rights and fair opportunities, domestic policies must connect more smoothly with foreign ones. But given that the motivation to reform is inadequate and there is strong opposition from vested interests, a new round of opening up is thus needed to force through the reforms, explained Wei.
Governments in China should transform from their traditional administrative role to a service-orientated one, Wei proposed. Western countries have done a better job in supporting enterprises and safeguarding their interest - their governments are willing to represent enterprises and open up overseas channels. Chinese private companies can help governments make the transformation by urging them to provide concrete support.