Liu Zhiqin, a senior fellow of the Chongyang Institute for Financial studies at Renmin University of China (RDCY), was interviewed by CGTN on foreign investment to China.
Q: Why did more sectors open to foreign investment?
A: China is getting ready to accept more investment from foreign companies or foreign countries. In the past three decades, China undertook 3 steps to boost FDI ( Foreign Direct Investment ). The first step is that we learn a lot from the western countries, especially the rules, regulations, and the laws system. The second step is we try to build up our law and our regulation to meet the demands of the market. The third step is very important, that we have to combine our rules and regulations, and complete it with the international practice. So in this way, China should be happy to say that now we are getting ready to accept more investment from foreign countries. Because we are growing up, and we have more experiences in dealing with problems which happened before in many other countries. That’s why China’s financial sector and other sectors are so stable. We built up our own system，and then we combined this two systems in a very positive way.
Q：What are the plans to open more to foreign investment？
A：I think every market has its own rules to open, because step-by-step approach is very normal. In every country it’s same, especially for China. China is a huge market and has a large population, and there are different conditions in different provinces. Chine needs more efforts to combine this conditions with foreign practice. At the moment, especially for communications sector of high electronic products or for financial sector, they are still not widely opened as people wish，because we need time to build up our own order in this market. If we open it without our own order, we will have many problems and we don’t even know how to solve them. The core interests and the core technology are still in the hand of western companies. So we have to be careful and cautious about it. Anyway, opening it and including it will be the only solution. It’s just a matter of time.