China’s ‘protectionism’ problem at local levels must be quelled, government adviser warns Beijing
- If troublesome trends are not addressed, Beijing’s plans to develop a unified domestic market will be blocked, political scientist Zheng Yongnian says
- ‘Some government departments are unwilling … to be responsible,’ prominent adviser says in flagging ‘shady implementations’ as leadership seeks to invigorate economy
China must come to grips with disorderly competition among its localities – along with an irresponsibly excessive adherence to the old ways of operating – to unleash the nation’s economic growth potential, according to a prominent political scientist who has also called for more economic integration with neighbouring countries.
Zheng Yongnian, an adviser to the central government, also called for “re-establishing” Hong Kong’s role as an international financial centre as he assessed choke points in invigorating the Chinese economy, in an article published on Wednesday.
“While Shanghai as a financial centre serves stability for us, Hong Kong, Shenzhen and Guangzhou should form a bridge to financial services that helps us compete with Wall Street,” said Zheng, who heads the Institute for International Affairs, Qianhai – a think tank based in Shenzhen, just across the mainland border from Hong Kong.
China is looking to invigorate its sputtering economy that has struggled to show a strong recovery in a post-pandemic climate, and growth has been further dragged by Washington’s trade curbs and calls to de-risk from China in the supply chain.
Zheng advised China to cultivate new growth momentum, such as through a greater willingness to “be more open and promise higher-quality conditions” when negotiating with the Association of Southeast Asian Nations (Asean) in upgrading an established trade deal.
“Our supply and industrial chain has been extended … we should aim to build a common market with Asean in the future,” Zheng said.
Domestically, while Beijing has been scrambling to roll out economic stimulus and boost investor confidence through measures that aim to unleash consumption potential or relax property restrictions, Zheng raised concerns about the implementation of these policies.