March 5th, 2021

China to open up markets in more sectors at a deeper level

By : Prisca Sam-Duru

The new China in 2021, which according to reports, is marked by “Foreign Investor-Friendly Access, Overseas Direct Investment in Hi-Tech Projects, and More Belt & Road Initiative Opportunities”, in addition to its plan to open up markets in more sectors at a deeper level, is an indication that the country is poised for greater impact on the global economy.
Even amidst the Covid-19 pandemic, China has been making some meaningful changes to its “economic direction and overall investment policy” with insightful implications for foreign investors in China, overseas funds and investors looking for Chinese money.
The country has also not performed badly regarding debt renegotiations which, according to reports, are in the tune of about $28 billion, mainly from less developed countries whose poor economic situation became worse due to the Covid-19 pandemic.
Make no mistake, most African countries that fall under the category of these less developed countries have handled the public health effects of the Covid-19 pandemic better than neighbouring continents, which have recorded an overwhelming number of deaths, with many still grappling with the containment of the virus. But, the effect of the pandemic on these African countries’ economy has been more pernicious.

That is the reason some projections tip African debt to become a more significant global concern this year. That may not be wrong considering a high unemployment rate and growing debts coupled with low liquidity to provide public services; factors that could make many African countries the “world’s poorest and most fragile” with the virus still raging.
It’s more likely, however, that many African states may need more assistance from their largest creditor- China. And China appears willing to help, considering the World Bank’s projection that the country’s 2021 GDP growth is about 7.9 per cent, which is considerably high compared with those of other countries. A little more help won’t have any negative impact on their economy, a fact corroborated by Minister Ma Hui when he disclosed China’s plans for a greater positive impact on the global economy.

“We will open up our market in more sectors and at a deeper level. And we will promote international cooperation and work for win-win results,” Mr Ma stated in his speech during the Global Soft Power Summit 2021, held virtually last week in London.
Minister Ma further shared “China’s vision and proposals with a reflection on China’s Covid-19 response, cooperation on the Belt and Road Initiative, and Chinese brand building”.
With over one thousand guests in attendance, the Summit, chaired by David Haigh, founder and CEO of Brand Finance, presented a huge opportunity for China to showcase some of the significant changes in what it termed its “economic direction and overall investment policy”.

Ma Hui pointed out that “in the face of the sudden outbreak of Covid-19, the Communist Party of China and the Chinese Government put the people at the centre of all their work and gave top priority to the safety and health of the people. Furthermore, China adopted the most comprehensive and strict prevention and control measures in the timeliest manner and brought the pandemic under control in a relatively short period. Today, China has kept its promise to make its vaccines public goods for the world and improve the accessibility and affordability of vaccines in developing countries”.

“As of today”, he continued, “China has provided vaccine aid to 53 developing countries that have requested assistance. China has decided to provide 10 million doses of Chinese vaccine to COVAX to meet the urgent need in developing countries”. He hinted that “China proposed the Belt and Road Initiative, BRI, in the spirit of wide consultation, joint contribution and shared benefits”, adding that “Over the past seven years since its launch, the BRI has become not only the biggest platform for international cooperation but also an important platform to deliver the vision proposed by President Xi Jinping of building a community with a shared future for mankind. China has signed cooperation documents with 140 countries and 31 international organizations, with partners spreading out on five continents. In countries along BRI routes, China has set up 82 overseas economic and trade cooperation zones, which have attracted investment of $41 billion and paid $4.3 billion in tax to host countries”.

While noting that China views innovation as the primary driving force for development which has helped boost most notable Chinese brands across the globe, Ma revealed that “In 2021, China will begin implementing the 14th Five Year Plan and embark on a new journey of building a modern socialist country in all aspects”.

Participants at the virtual Summit who were enthused by China’s miracle’ in economic and social development for decades now, expressed their conviction that as “China’s international status and influence increase, China will play an even more important and leading role in brand building and innovative development in the future” which according to them, will reinforce exchanges with other countries all over the world.

Expectedly, Africa, with most of her countries enjoying a robust bilateral relationship with China, will remain a beneficiary of the brand building and innovative development by the Chinese as this could facilitate a fresh beginning on her journey to economic recovery.