(Yicai Global) July 17 -- China does not believe that opening up to more foreign investment will negatively impact domestic industries, according to the nation's top economic planner and price setter.
Economic expansion in China is transitioning into one based on quality, and this requires a more open environment, Yan Pengcheng, spokesman for the National Development and Reform Commission, said at a press briefing today. He pointed to the list of industries foreign investors may not pump money into, which the NDRC and commerce ministry reduced at the end of June, as evidence of China's will to further open up its markets.
Those sectors are already equipped to bring in foreign investment, Yan continued, giving a nod to the domestic auto market which now allows overseas makers to hold a majority stake in their local ventures. Rather than harming Chinese companies, the introduction of foreign firms will help spread new technologies and breed healthy competition, he added.
China's 40 years of reform and opening up demonstrate its increasingly developing economy, he added, saying the country's continuous modernization can be largely attributed to promoting reforms and development through opening up, he added.
Yan also believes that the opening up process provides stability and order to market participants. In related fields, the country formulates timelines for adopting new measures and through gradually rolls them out making reforms more predictable.
Editor: James Boynton