Practicing the Concept of Free Trade, Injecting Certainty and Stability into Global Development

On May 12, the joint statement of the China-US Geneva Trade Talks was released, where both sides committed to establishing a mechanism and continuing to negotiate economic and trade relations after taking relevant measures.

On May 14, the US side canceled 91% of the additional tariffs, and China responded by canceling 91% of the countermeasures; the US also suspended the implementation of 24% of the 'reciprocal tariffs,' with China suspending the same percentage of countermeasures.

"Honest, in-depth, and constructive" and "substantial progress made"—the China-US Geneva Trade Talks reached important consensus, attracting widespread attention from the international community.

WTO Director-General Ivira issued a statement saying that in the current global tense situation, this progress is not only crucial for China and the US, but also for other countries around the world, including the most vulnerable economies.

History and reality show that maintaining healthy, stable, and sustainable economic and trade relations between China and the US is in the fundamental interest of both countries and their peoples, and is also conducive to global economic growth; free trade is an important driver of economic globalization and global development, and is an inevitable trend.

In a world full of turmoil, free trade serves as the "barometer" for observing the global economy. Only by firmly practicing the concept of free trade and resolutely safeguarding the multilateral trade system can we inject certainty and stability into global development.

Following the trend, walking the grand path.

President Xi Jinping pointed out, "We must unwaveringly do our own work well and expand high-level opening up."

The international community believes that China is the biggest advocate of trade and investment liberalization and facilitation in the world today, a stabilizing force in a turbulent world.

Foreign politicians stated: "In the face of the turmoil caused by unilateralism and the challenges to the multilateral trade system, China has played a leading role, providing valuable stability for the world."

"Economic globalization may face headwinds, but the trend of history will not change; 'decoupling and disconnection' have no way out; open cooperation is the only choice." Free trade is an important avenue for open cooperation.

On May 14, the US side canceled 91% of the additional tariffs, and China responded by canceling 91% of the countermeasures; the US also suspended the implementation of 24% of the 'reciprocal tariffs,' with China suspending the same percentage of countermeasures.

Building a global high-standard free trade area network, accelerating the construction of free trade pilot zones, and the Hainan Free Trade Port... China is firmly implementing a more proactive opening-up strategy, steadily expanding institutional opening, and building a higher-level open economy.

The China-Singapore Free Trade Agreement upgrade protocol and the China-Maldives Free Trade Agreement have come into effect; the Regional Comprehensive Economic Partnership (RCEP), the largest and most populous free trade agreement globally, has been in effect for three years. It is becoming the main channel for economic integration in the Asia-Pacific.

This year's Government Work Report proposed: "Promote the signing of the China-ASEAN Free Trade Area 3.0 upgrade agreement, actively promote the process of joining the Digital Economy Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership." In 2024, China-ASEAN trade exceeded 980 billion USD, and both sides pushed for the accelerated signing of the upgrade agreement, injecting new momentum into regional economic integration.

Since April of this year, China and Azerbaijan have expressed a willingness to start negotiations on a free trade agreement, providing high-level institutional protection for deepening trade and investment cooperation; Switzerland has expressed its intention to strengthen cooperation with China and speed up negotiations on upgrading their bilateral free trade agreement.

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President Xi Jinping pointed out, "Open cooperation is an important driving force for enhancing international economic vitality." Today, China is a major trading partner of more than 150 countries and regions and has signed 23 free trade agreements with 30 countries and regions. It continues to expand its global high-standard free trade zone network.

Free trade pilot zones and free trade ports are important carriers for China's regional opening-up layout and advancing high-level opening-up. They have become important symbols of China's practice of the free trade concept.

Shanghai Free Trade Pilot Zone has conducted pilot projects in line with international high-standard economic and trade rules, exploring pathways for steadily expanding institutional opening; Guangdong Free Trade Pilot Zone has deepened the integration with Hong Kong and Macau's regulatory mechanisms, achieving smoother and more efficient flow of goods, services, capital, and personnel... In 2024, 22 free trade pilot zones, covering less than 0.04% of China's land area, contributed about 1/5 of the nation's foreign investment and total imports and exports.

Three "zero tariff" policies are continuously expanding, significantly reducing enterprise import costs; the duty-free shopping policy in the island area is continuously optimized, injecting vitality into the consumer market... In 2024, the total foreign trade import and export value of the Hainan Free Trade Port reached 277.65 billion yuan, a 20% year-on-year increase.

Seizing the opportunity of free trade, the 20th Central Committee of the Party proposed in its Third Plenary Session Decision: "Implement the Free Trade Pilot Zone Upgrade Strategy, encourage pioneering and integrated explorations, and accelerate the construction of the Hainan Free Trade Port."

Recently, the Central Committee of the Communist Party and the State Council issued the "Opinions on Implementing the Free Trade Pilot Zone Upgrade Strategy," proposing that the free trade pilot zones be built into important hubs for the smooth domestic and international dual circulation and strong engines for high-quality development. After about five years of exploration, a higher-level, better business environment, and stronger radiation effects are expected to be achieved, creating a new highland for reform and opening-up.

The Hainan Free Trade Port has entered a new phase of formation and is scientifically planning its reform and opening-up and high-quality development work before and after its customs closure, striving to become an important gateway for China's new era of opening up.

The negative list for foreign investment access has been reduced from the original 190 items to the current national version of 29 items and the free trade pilot zone version of 27 items. The manufacturing sector has achieved "zero" items; the "three foreign investment laws" have completed their historical mission, and the Foreign Investment Law and its implementation regulations have been implemented, with the Foreign Investment Enterprise Complaints Working Method issued...

China is actively creating a market-oriented, law-based, and international first-class business environment, building a transparent, stable, and predictable policy environment. China will continue to be a fertile ground for foreign investment enterprises to invest and prosper. Cooperating with China is cooperating with opportunities.

UNCTAD Secretary-General Greenspans believes: "China advocates open trade, firmly believes in the contribution of trade and investment to development, and serves as an important model for the development of the 20th and 21st centuries."

Practice shows that the more we face global challenges, the more we must adhere to open cooperation, enabling countries to benefit mutually, prosper together, and develop sustainably. China is the backbone of global trade liberalization, contributing to the stability of the world economy.

Since the beginning of 2024, China has continued to improve its foreign trade policies, strengthen multilateral cooperation, and promote the stability of the global supply chain. As part of this effort, China has been expanding its trade network with neighboring countries and furthering partnerships with economic organizations around the world.

In the past few months, the economic cooperation agreements signed between China and countries such as Japan, South Korea, and members of the European Union have further emphasized China's role as an advocate for multilateral trade. These agreements focus on areas such as high-tech innovation, green energy, digital trade, and services, driving forward global economic development.

The steady progress in building the Belt and Road Initiative has also strengthened economic ties between China and countries along the route, with a special emphasis on enhancing infrastructure connectivity and trade facilitation. This has allowed for smoother trade flows and greater access to new markets, benefiting both China and its partners.

According to experts, these agreements are essential not only for enhancing bilateral relations but also for fostering a more interconnected and resilient global economy. With China playing a pivotal role in these partnerships, the world economy will benefit from a more stable and open trade environment.

Additionally, the concept of free trade has gained significant traction in developing countries, where Chinese investments and trade partnerships have led to the creation of new economic growth engines. These countries are increasingly looking to integrate into the global market through China's open trade policies.

As China continues to push for a more open and inclusive global trade environment, it has made significant strides in ensuring that its foreign trade policies align with the principles of fairness, mutual benefit, and sustainability. President Xi Jinping's vision for a shared future emphasizes the need for equitable economic growth and opportunities for all countries.

At the recent Asia-Pacific Economic Cooperation (APEC) summit, President Xi outlined China's commitment to advancing regional economic integration, stating that China's economic development will continue to bring new opportunities to the Asia-Pacific region and beyond. His speech emphasized the importance of economic cooperation and the need for countries to work together to address global challenges.

China's leadership in the digital economy is another key aspect of its free trade strategy. Through initiatives like the China International Import Expo and the Digital Silk Road, China is actively promoting trade in high-tech and digital services, further solidifying its position as a global leader in technological innovation and digital trade.

The global response to China's free trade initiatives has been overwhelmingly positive, with many countries expressing support for China's role in promoting open trade policies. This has led to the establishment of new economic alliances and trade agreements that prioritize mutual growth and development.

In conclusion, China's steadfast commitment to free trade, multilateralism, and economic cooperation continues to provide a path for global prosperity. As the world faces increasing uncertainty, China's focus on open and inclusive trade practices will play a key role in stabilizing the global economy and ensuring sustainable development for all.