IV、Guarding against the risks of economic globalization and establishing safeguards in the process of opening up
President Xi has argued that economic globalization is a double-edged sword; in global economic downturns, all countries, developed and developing alike, will experience pressure. He has said that our open development environment is creating more benefits than ever, but the associated problems, risks, and trials are also unprecedented. The more open we are, he has pointed out, the more attention we must pay to security, properly managing both development and security so that we can make ourselves impervious to risks. President Xi has further pointed out that development and security mutually reinforce each other on a fundamental level, that development provides the greatest guarantee of security and the "master key" for solving security issues, and that we must continually open up, improve the quality of opening up, and leverage greater openness to promote reform and development-this is an important vehicle that will continually yield fresh success in China's development.
Economic globalization creates both development opportunities and security risks.
As the economic globalization "pie" has become bigger, the issue of properly sharing the pie out has come to the forefront. The conditions, systems, and development stages of countries differ, as do their development contexts. While developing countries have reaped benefits during economic globalization, ineffective policy adjustments have resulted in the hollowing out of their industries, inadequate employment, and a growing gap between rich and poor. The success that developing countries have had in opening up is self-evident, but their lack of development strength and inadequate capacity to respond to risks makes them susceptible to external shocks. The globalization of economic risks demands stronger cooperation and a collective response. The economies of all countries are interdependent, and economic security is a global issue from which no country can seal itself off. Stronger international cooperation to achieve individual and collective security during the process of opening up is a practical choice for all countries.
While participating in economic globalization, China has grown stronger and more secure but also faced new challenges.
In a period of more than 40 years, China has managed to maintain independence while expanding opening up. It has increased its composite national strength and gained a stronger capacity to maintain security on one side, while properly managing the intensity and pace of opening up on the other, keeping a close focus on guarding against risk. Having developed from a small to a large trading nation, China is now in the process of becoming a trader of quality and quantity. As it plays a deepening role in economic globalization, its impact on the world, and the world's impact on China, will increase notably. At the same time, as unilateralism and protectionism rise, China will face more external risks that need to be addressed in the right way.
Promoting development and security. As China opens its window wider to the world, it must establish safeguards to ensure economic security. In the new stage of development, economic globalization must serve as the backdrop for domestic development planning. We must leverage international and domestic markets and resources, promote market reform and high-quality development with greater opening up on all fronts, ensure economic security with stronger competitiveness in industry, a stronger economy, and greater composite national strength, and achieve greater economic security as we take part in a higher level of economic globalization. Following the laws underlying the development of major economies, China will proceed with the fundamental task of expanding domestic demand, accelerate the creation of a new development dynamic, and pursue opening up, reform, and development in a coordinated way to strike an optimal balance between openness and security.
Guarding against and mitigating risks effectively. We will keep in mind worst-case scenarios, and hold fast to redlines in free trade negotiations. We will resolutely implement the decisions and plans of the CPC Central Committee, ensure general stability in foreign trade, work to keep global industry chains and supply chains stable, and guard against risks with regard to the Belt and Road Initiative with practical steps. We will properly manage the intensity, progress, and level of opening up. We will actively respond to both traditional and non-traditional security threats and better protect national economic security.
Enhancing China's ability to participate and lead in economic globalization. We will improve China's ability to participate in setting rules for multilateral, regional, and bilateral ties. We will play an active role in the new round of rulemaking, taking a firm stance against protectionism while standing up for free trade and multilateralism. We will improve our capacity to ensure security through the use of international norms and rules, enhance industrial security mechanisms and early warnings for economic security risks, and enhance reviews of foreign investment projects, early warnings for industrial injury, and trade remedies. We will improve our capacity to develop international economic, legal, management, and negotiation talent, work to increase China's representation in international organizations, foster a more attractive domestic environment for international talent, and strive to create an international environment that is favorable for China, so as to protect our country's period of strategic opportunity.