[gmw.cn]LUO Laijun: Comply With the Tide of the Times and Build an Open World Economy

The 2019 annual meeting of Boao Forum for Asia was held in Boao, Hainan from March 26th to 29th. The open world economy is a major topic of this forum to attract global attention. Since its inception, Boao Forum for Asia has been committed to the development and cooperation of Asian countries. It has developed into a high-level platform for dialogues between Asian and other continents, governments, business and academic leaders on important issues in Asia and the world. Under the global background of rising anti-globalization, protectionism and populism, the world economy has historically been at a crossroads. Whether countries around the world should continue to expand their openness or return to a closed state, The Boao Forum gave a clear answer by calling for an open world economy.

The construction of an open world economy is an objective law of human social and economic development, and an inevitable requirement for the pursuit of economic progress by all countries in the world. At present, the world economy has undergone the differentiation. On the one hand, the flow of commodities, capital, technology, labor and other factors in the global sphere has been continuously strengthened, and the supply and demand among countries have been increasing, which has brought a powerful impetus to the development of the world economy; On the other hand, in recent years, the world economy has experienced weak growth momentum, increased market turmoil, increased financial risks, and widening gap between the rich and the poor. But these negative problems are not caused by the opening up of the world economy itself, but some improper actions in the process of opening up.

Obviously, the practice of shutting down the country, isolating the country, and beggar-thy-neighbor is against the trend of the times. It is an irrational behavior that is harmful to both other countries and local country. Building an open world economy and pushing the world economy further opening is the historical trend. Although some countries have adopted trade protectionism and taken its own country’s interests first, most countries and international organizations in the world are actively promoting the opening of the world economy and pursuing high-level trade and investment liberalization and facilitation. Moreover, with the new development of the world economic situation, countries and international organizations is constantly improving their ways to promote the opening of the world economy, and also take actions to reform the institutional problems that hinder the further opening of the world economy. For example, emerging economies and developing countries has become stronger and developed into a major emerging force on the world stage. Meanwhile, Western developed countries has declined relatively. The traditional world economic openness and global trade and investment system are mainly around Western developed countries, which is more difficult to adopt new world economy pattern. Therefore, the International organizations such as the International Monetary Fund, the World Bank, and the World Trade Organization need to carry out reforms, adjustments, and improvements to adapt to the world economic opening mechanism under the new situation.

In order to adapt to the new situation, international organizations such as the International Monetary Fund and the World Bank have made active explorations and certain reforms, such as reforms in voting rights and management rights to enhance the rights of representation and speeches of emerging economies and developing countries. At the national level, both developed and developing countries need an open world economy, rather than a closed, isolated national economy. Only an open world economy can benefit both developed and developing countries from the development of the world economy.

As far as China is concerned, it is both an active caller and a firm practitioner in building an open world economy. The door to China's opening will not be closed, and it will only widen. Recently, it is especially committed to creating an open economic new system. One of the typical decisions and actions is to build a free trade port on Hainan Island. The free trade port is the special economic function zone with the highest level of openness in the world today. The Party Central Committee decided to support the construction of a free trade pilot zone in Hainan Island, support Hainan to gradually explore and steadily promote the construction of a free trade port with Chinese characteristics, and establish a free trade port policy and institutional system in steps and phases, which means that China is determined to build the world's highest level of open economy on a large scale at the height of a major national strategy.

China is also committed to the docking of major domestic strategies and opening up, coordinated internal and external development, and increased the scope and depth of opening up. For example, the Yangtze River Economic Belt is connected to the “One Belt One Road” open platform from the east, west, south and north part of China. The Yangtze River Economic Belt Development Strategy, a major national strategy, is fully integrated with the “One Belt One Road” international cooperation initiative, reflecting China’s opening up to the outside world is going deep in a creative way.

The auhtor is the research fellow of NADS and Dean of Yangtze River Economic Zone Research Institute.

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