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High-quality development of open economy
The report of the 19th National Congress of the Communist Party of China pointed out that "China's economy has been transitioning from a phase of rapid growth to a stage of high-quality development. This is a pivotal stage for transforming our growth model, improving our economic structure, and fostering new drivers of growth." The development model of open economy with high quality is set to completely change the extensive development model that mainly relied on expanding the scale of investment in low-end factors, blindly expanding production capacity, and pursuing sustained and high growth in the volume of goods exported and the scale of foreign investment introduced. It then turns to increase the value added of export goods, raise the access conditions of foreign-invested projects in terms of technology, economy environment, and social benefit, and gradually solve the problems of overcapacity and low efficiency accumulated in the past under the high growth rate-oriented open economic development model. Specifically, the connotation of the high-quality development of open economy includes three aspects:
The speed based on sound and stable development
The development of an open economy with the goal of quality upgrading is by no means abandoning the growth of exports and foreign capital utilization. It is inseparable from the steady growth of trade and investment scale. On the one hand, the quality upgrade of enterprise products and services is a gradual accumulation process. For enterprises in developing countries, the quality upgrading path of "low-end cultivating high-end" is a more common and reasonable choice, that is, enterprises need to achieve stable profit inflows in the international medium- and low-end products and services market to subsidize their high technology R&D costs in the high-end market. On the other hand, the huge two-way trade and investment scale is the new comparative advantage of China's integration into the global value chain. At present, the production capacity, cost performance, and timely delivery capability of China's manufacturing products have absolute competitive advantages around the world. Meanwhile, in terms of product quality and new product R&D and design capabilities in medium- and high-end industries, the gap between China and developed countries such as the US, Japan, and Germany is also shrinking rapidly. This makes it cheaper and more efficient...