Setting aside prejudices, the world needs to learn lessons from China’s economic miracle by understanding the wisdom of deepening reforms, opening up, and advancing modernization. The recently concluded third plenary session of the 20th Communist Party of China (CPC) Central Committee, which adopted a resolution on these subjects, is a great look into this change.

During the 4-day summit held from July 15th to July 18th in Beijing, Chinese leadership charted a roadmap to further comprehensively deepen reform, which matters greatly for both China and the world. The international community is truly a beneficiary of China’s reforms and opening up. Since the day China unleashed overarching reforms by opening its doors to the world, global growth has been registering an upward trajectory steadily and gradually. China even injected resilience into world economies that took heavy financial losses during the recent economic meltdown and the catastrophic ordeal of COVID-19.

China’s improved business environment, and mature industrial chains have generated promising potential for foreign investors. China continues to be one of the most popular investment destinations in the world. Major multinational corporations from various sectors, including KFC and Standard Chartered, have recently boosted their investments in China. The country remains a prime investment destination due to its promising innovation opportunities, comprehensive industrial support, and conducive business environment.

As a welcoming destination for foreign trades around the globe, China attracted a total of 1.13 trillion yuan ($158.7 billion) in foreign investment in 2023, compared to 941.52 billion yuan in 2019. “No country is able to develop itself behind closed doors,” said China’s top legislator Zhao Leji. He added, “We must oppose trade protectionism and all forms of erecting barriers, decoupling, or severing supply chains, and instead share opportunities in opening up and seek win-win outcomes through cooperation.”

Zhao, chairman of the National People’s Congress Standing Committee, highlighted that China is pursuing a path of high-quality development and is deepening reform and opening up, providing great development opportunities for Asia and the world.

The BRI has changed the landscape of infrastructure financing and governance around the world by offering an alternative model to existing multilateral institutions. It has reshaped regional order and stability in Asia and beyond by creating new partnerships among the countries involved. It has also enhanced China’s cooperation and coordination with many countries, especially in Central Asia, South Asia, Southeast Asia, and Africa, where much-needed investment, trade, and development assistance have been provided.

Developing countries see the BRI as a source of financing, investment, trade, and infrastructure development that can boost their economic growth and development. The BRI has expanded China’s export markets and diversified its trade partners, especially in emerging regions such as Africa, Central Asia, and Southeast Asia, bringing multiple economic benefits. Additionally, it has increased China’s outbound investment and facilitated its access to natural resources, technology, and markets.

From 2013 to 2020, China’s trade volume with BRI countries reached $9.2 trillion. Direct investment from China to those countries reached $140 billion. Over the years, the BRI has significantly contributed to global GDP growth, especially for China and other participating countries. Statista projects that the BRI could increase global GDP by 0.7 percent in 2030 and by 2.6 percent in 2050. China’s GDP could increase by 3.4 percent by 2030 and 5.3 percent by 2050 as a result of the BRI.

China’s diplomacy of high-quality reforms and opening up has steered the global community from a unipolar world to a multipolar world, breaking free from ruthless dollar hegemony and providing a fresh choice in the form of the RMB, another international currency that is efficient and resilient in modern times.

SWIFT data showed that the RMB’s share of global trade finance was 3.91 percent at the end of 2022, up 1.9 percentage points year-on-year, ranking third. In September 2023, the currency’s share of global trade finance rose to 5.8 percent, up 1.6 percentage points year-on-year, ranking second.

In the first nine months of 2023, cross-border RMB payments reached 38.9 trillion yuan, up 24 percent year-on-year. Almost a quarter of that was used for trade settlements, the highest level in recent years. The report also showed that the RMB’s function as a financing currency has been built upon. A number of policies have been introduced to support the issuance of RMB bonds by foreign institutions in China and the lending of yuan by domestic banks to overseas entities.

Yasir Habib Khan
The writer is the president of Institute of International Relations and Media Research (IIRMR). He tweets at @yaseerkhan.