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China Announces Full Opening of Manufacturing Industry to Foreign Investment
October 19, 2023
01

China Announces Full Opening of Manufacturing Industry to Foreign Investment

Chinese President Xi Jinping made a significant announcement, declaring the complete elimination of restrictions on foreign investment in the manufacturing sector, during his keynote speech at the opening ceremony of the third Belt and Road International Cooperation Summit Forum on October 18th. This comes after China opened many sectors and used a negative list approach in pilot free trade zones to open up manufacturing.

The comprehensive opening of the manufacturing industry on the 18th is seen as a crucial signal of China’s economic transformation. “China’s manufacturing industry has transitioned from the middle and low-end to the middle and high-end in the global production, supply, and value chains. This full-scale opening is positive news for the global economy, particularly for the manufacturing sector,” commented Wei Jianguo, Vice Chairman of the China Center for International Economic Exchanges and former Vice Minister of Commerce.

The complete elimination of foreign investment restrictions in the manufacturing sector sends several key signals. Firstly, it signifies China’s shift ambition from being a manufacturing powerhouse to becoming a manufacturing powerhouse,  solidifying its position in the global industrial and supply chains.  And further, China’s future economic development will still rely on the real economy.

“This departure from the path taken by major Western countries, which gradually shifted towards the service sector and underestimated manufacturing, demonstrates China’s strong foundation and support in the manufacturing industry. Going forward, China will continue to enhance its manufacturing industry while developing the service sector, ensuring strength in both aspects,” added Wei Jianguo.

On the same day, China’s National Bureau of Statistics announced that the country’s GDP for the first three quarters of the year reached ¥91,302.7 billion, with a year-on-year growth rate of 5.2% at constant prices.

02

The Future of AI: President Xi Jinping’s Proposal and US’ Ban

On October 18, President Xi Jinping put forward the “Global Initiative on AI Governance.” at the opening ceremony of the third Belt and Road International Cooperation Summit Forum. He comprehensively elaborated on China’s approach to governing artificial intelligence (AI), focusing on its development, security, and governance. The main point include:

– AI brings opportunities and risks. Governance is needed to maximize benefits and address challenges.– Countries should build consensus on AI governance through dialogue and cooperation.– Key principles: people-centered, peaceful purposes, shared benefits, mutual respect, ethics-first.– Actions needed: information sharing, ethical guidelines, laws and regulations, risk assessments, UN coordination.– Goal is to develop governance frameworks to make AI secure, reliable, controllable and equitable.– Inclusiveness is important – developing countries should have equal rights and opportunities in AI.

Meanwhile, the United States Department of Commerce further tightened export restrictions on advanced AI chips to China and added several Chinese GPU startups to the blacklist, indicating the widening technology competition, particularly in the field of AI.

03

The Third “Belt And Road” International Cooperation Summit Forum Concluded

On October 18th, the third “Belt and Road” International Cooperation Summit Forum concluded in Beijing after two days of intense conferences. Representatives from over 150 countries and more than 30 international organizations attended the forum. During the forum, a total of 458 cooperation agreements were reached. Among them, 89 are multilateral cooperation outcome documents and 369 are practical cooperation projects. Chinese Foreign Minister Wang Yi stated that the number of cooperation projects reached during this forum has far exceeded that of the last forum. On Chinese internet, many netizens believe that China will further enhance its global influence and showcase a brand-new model of development and cooperation to the world.

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