China’s economic slowdown prompts Beijing to reaffirm commitment to opening up financial markets

The State Council on Wednesday reaffirmed its commitment to open up to foreign investments

Since the start of the US-China trade war in 2018, Beijing has been attempting to open up its financial markets

Reading Time:4 minutes

Chinese Premier Li Keqiang is the chair of the State Council, China’s cabinet. Photo: Xinhua

Published: 6:00pm, 22 Jul 2021Updated: 12:03pm, 2 Aug 2021

China will step up its plans to further open up the financial industry to foreign investments as a means of shoring up its post-coronavirus economic recovery and to also help tackle the prospect of a slow down later in the year.

The country must push on with its commitments to open up the banking and insurance sectors, while leveraging both the international and domestic markets, to establish itself as “a popular destination for foreign investment”, the State Council, China’s cabinet, said in an executive meeting on Wednesday.

It is not the first time Beijing has turned to the strategy, but it is reaffirming its commitments ahead of a likely economic slowdown in the second half of the year after a robust first six months aided by fiscal stimulus and a strong start off the back of low production levels last year.

“As a developing country, China’s development must rely on the real economy. Greater financial openness should better serve the real economy, which is of great importance to maintaining the country’s economic stability,” said Chinese Premier Li Keqiang.

The wider opening-up of the financial sector will help foreign institutions to share the dividends of China’s economic development and will also help promote the further development of the

But Li also warned that the government should safeguard economic and financial security as its economy opens up further.