Commentary

Financial crisis won't stop China's opening up, reform

(Xinhua)
Updated: 2008-12-18 16:00

There is no sign that China will let up on reform. For example, the fuel tax reform, which is to be implemented on January 1, is actually a bold attack on the last two price strongholds that are still under the strict control of the government: fuel and electricity.

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This reform also has an impact beyond prices. Since it will cost people more to use energy, the tax change could cut energy use and emissions.

Other major reforms are also being prepared, including those involving derivatives and futures, the social security system and rural medical care.

On the opening side, China has not slowed down, either. So far this year, it has approved 20 qualified foreign institutional investors to enter the market. Also this year, several foreign banks opened branches in China, while China's major commercial banks opened overseas branches.

Chinese companies' overseas purchases and acquisitions are continuing as well, with the latest being Sinopec's 1.5 billion-US-dollar acquisition of Canadian oil company Tanganyika in December.

With its economy increasingly integrated into the world, China has paid careful attention to international cooperation. Over the past two months, President Hu Jintao and Premier Wen Jiabao held talks with leaders of the world's major economies seeking ways to pull the global financial system and the economy out of crisis.

The financial crisis is only one of the unexpected challenges that China has faced this year. Others included the prolonged snowstorms in January, an outbreak of hand-foot-mouth disease over the summer, the deadly Sichuan Province earthquake in May and the melamine scandal that almost destroyed the dairy industry.

China has displayed exceptional resilience in responding to these challenges and the government's response has been increasingly efficient and transparent, winning recognition from all over the world.

The year that's just ending was a critical one for the opening up and reform process, and the country weathered the difficulties with great confidence. The Central Economic Work Conference expressed confidence in adherence to the socialist road with Chinese characteristics and the achievements of the opening up and reform drive.

China is learning from the financial crisis, and government officials and scholars have discussed in the media how and why the crisis happened.

While China will use regulation to prevent market turbulence, it will not stop market-oriented reforms and opening up to the world.