China must open up further to combat rising unilateralism, premier says

By Casey Hall

China will upgrade its free trade zones and explore investment agreements with other countries, Chinese Premier Li Qiang said on Tuesday, adding that opening up was a "must" to combat rising unilateralism globally.

Li told the opening ceremony of the annual China International Import Expo that as part of this effort, China would further expand foreign investment access to sectors such as telecommunications and healthcare.

He also said authorities were confident China will meet this year's growth target, saying there have been many positive developments in the economy indicating a favorable outlook. Authorities also had fiscal and monetary tools at their disposal, he added.

China's imports have slowed sharply this year as the world's second-largest economy faces strong deflationary pressures due to weak domestic demand and a long-standing property market crisis. Trade friction with the United States and Europe has also escalated.

The import expo was launched by President Xi Jinping in 2018 to burnish China's free trade credentials and counter criticism of its trade surplus with many countries.

This year's participants range from L'Oreal to Siemens and organisers say that close to 3,500 exhibitors from 152 countries and international organisations will take part. Foreign leaders attending the opening ceremony include the prime ministers of Malaysia and Slovakia.

Last year's fair saw $78.4 billion worth of "tentative" deals signed, its organisers previously said.

The expo has, however, been criticised by the European business chamber and others as being more of a government marketing event rather than one that yields deals.