China's opening up is rare offering to world: commentary

China's commitment to openness and its vast market bring enormous opportunities for global players with the annual China International Import Expo (CIIE) serving as a golden gateway to these unmissable opportunities, according to a commentary released by the China Media Group (CMG) on Monday.

An edited English-language version of the commentary is as follows:

The seventh China International Import Expo (CIIE) saw over 80 billion U.S. dollars worth of tentative deals reached for purchases of goods and services, an increase of 2 percent from last year.

This year's expo has attracted 3,496 exhibitors from 129 countries and regions, with a record high number of Fortune Global 500 companies and industry leaders attending the event. Among all participants, 186 enterprises and institutions have been present at all seven editions of the expo.

Up to 450 new products, technologies and services made their debut at this year's CIIE.

On top of the national level import-themed expo, China has recently unveiled a series of initiatives, including broadened visa-free policies and eased investment restrictions, to open its doors ever wider to foreign visitors, investors and business doers.

For instance, from Nov. 8, citizens from Slovakia, Norway, Finland and six other countries can enter China without a visa. The country has also removed all market access restrictions for foreign investors in the manufacturing sector. In addition, starting from Dec. 1, China will give all the least developed countries having diplomatic relations with China, zero-tariff treatment for 100 percent of all tariff lines.

The opening-up policies are facilitating visits to China for foreign nationals, smoothing the development of foreign investment in China, and broadening the space for cooperation.

Viewed in a global context, China's continuous efforts to open up are particularly valuable in the face of the high wall of trade protectionism erected by certain countries.

According to the World Openness Report 2024 published during the expo, in terms of global openness, the index in 2023 decreased by 0.12 percent year on year, down 0.38 percent and 5.43 percent from 2019 and 2008, respectively. In contrast, in 2023, China's openness index increased by 11.89 percent over 2008, ranking among the highest in the world.

China's opening-up facilitates the smooth flow of people, capital and goods. In October this year, two 150-kilogram Maltese bluefin tuna landed in Shanghai, marking their official entry into the Chinese market after their "first show" at the last CIIE. Many international companies, including French cosmetic giant L'Oreal and Netherlands-based global tech company Philips, have announced increased investment in China.

As China continues to establish platforms for high-standard opening-up, such as the CIIE, and introduce a series of measures to facilitate inbound visits, foreign-invested enterprises will be well-positioned to further develop in China and share the opportunities in the vast market.

International companies attending the expo are rolling out cutting-edge tech products such as AI-driven footwear, eco-friendly tires, innovative drugs and advanced medical devices tailored to consumers in China's vast market.

And more and more foreign companies are establishing their innovation centers in China, taking advantage of the nation's innovation prowess to enhance local research and development.

At present, with many international companies already signing up to attend the next CIIE, the planned exhibition area will exceed 100,000 square meters. At the end of this month, the second China International Supply Chain Expo will be held in Beijing to promote global collaboration on industrial and supply chains.

Opening-up is a defining feature of Chinese modernization, and a rare offering China presents to the world. This is why foreign-invested companies view "coming to China" as a long-term commitment.

China's opening up is rare offering to world: commentary

China's opening up is rare offering to world: commentary

A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.

Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.

"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.

U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.

The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.

"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.

South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.

A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.

"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.

Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.

"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.

South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.

Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.

US tariffs rock South Africa’s auto industry