Keynote Speech by H.E. Ambassador Liu Xiaoming at the Navigate the New Silk Road Forum: China Stays Committed to Openness, Cooperation and Consultation, and Brings Confidence to the World

Chairman Constantin Cotzias,

Economic Secretary John Glen,

Distinguished Guests,

Ladies and Gentlemen:

Good afternoon!

It is a real delight to join you again at Bloomberg.

The Bloomberg Forum on "Navigate the New Silk Road" could not have been more timely, as countries of the world explore ways to tackle the rising risks, instabilities and uncertainties in the world economy. In my opinion, what the world economy needs most now is "confidence".

Today, I would like to explain what China is doing to boost confidence and promote common progress by answering the following three questions.

The first question is: In face of rising unilateralism and protectionism, should countries of the world choose openness or isolation?

China's answer is clear: We remain committed to further opening up. This commitment boosts confidence in robust economic growth.

First, China has demonstrated firm resolve to open its door wider to the world.

Opening up is a basic national policy of China. It is not expediency, but a natural choice. It is for the purpose of realising high-quality economic growth, and it is in line with the trend of globalisation.

At the G20 Summit in Osaka last month, President Xi announced five important measures, namely:

· Open up the Chinese market wider.

· Expand imports.

· Improve the business environment.

· Equal treatment for all foreign investment.

· Advance trade talks.

These concrete measures reaffirm China's resolve and courage in opening its door wider to the world. It is met with enthusiastic response from the international community.

Second, China has taken firm steps to open its door wider to the world.

When a certain big Western country insisted on putting itself first and adopted bullying trade policies, the global industrial landscape and trade situation came under severe stress.

China has not succumbed to outside pressures. Nor will it stop the steps of opening up. China will continue to advance the Belt and Road Initiative as the master plan for its opening up. And in this process, China will strive to make sure that more countries and people will benefit from BRI.

At the first Belt and Road Forum for International Cooperation two years ago, 279 outcomes covering five areas were reached and all have been implemented. Last April, the second Forum was successfully held, where 283 outcomes covering six areas were reached, and more than 65 billion dollars of deals on cooperation projects were signed. The second Forum marked the beginning of a new stage for high-quality BRI development.

Third, China has kept up the momentum of opening up wider to the world.

Economic globalisation is an irreversible trend. Greater integration into the world economy is the major direction that cannot be changed. Therefore, no matter how many difficulties or setbacks China encounters, it will not waver in opening its door wider to the world.

As we speak, China's manufacturing sector is basically open. It is gradually lifting restrictions on access to the modern services sector. And it is opening up the financial sector with accelerated pace and at a higher level. Going forward, China will continue to quicken its steps to increase market access for foreign investment. Take for example foreign ownership caps in joint venture firms in sectors such as securities, future and life insurance. China has brought forward the deadline for lifting the caps from 2021 to 2020. At the same time, China has also cut short the 2019 edition of the negative list on foreign investment, reducing the 48 items on the list to 40.

In 2018, China paid more than 30 billion dollars in patent fees and royalties to overseas license holders or rights owners. That's nearly four times more than ten years ago. Going forward, China will take further steps to foster an open, transparent and fair business environment. These steps include

· strengthening IPR protection,

· striving to complete the supporting regulations of the Foreign Investment Law by the end of this year,

· and continuing to improve the legal system for opening up.

In recent years, China has taken the initiative to cut tariffs many times. Its trade-weighted average tariff only stands at 5.2%. This is lower than the majority of the developing countries, and close to the average level of developed countries. Going forward, China will continue to take the initiative to cut overall tariffs and expand imports. Later this year, China will host the second China International Import Expo. This will be an opportunity to share China's market with more countries.