A view of the Yantian Port seen from the viewing platform, Shenzhen, Guangdong province, China, February 20, 2026. /VCG
As the 2026 national Two Sessions unfolds, a key theme has stood out among lawmakers, experts, and industry leaders: how China can further open up its economy in a more systematic, predictable, and high-quality way.
This approach, widely referred to as institutional opening-up, represents a strategic shift away from traditional measures that focused primarily on the flow of goods and resources. China is now emphasizing the alignment of its rules, regulations and standards with international practices in order to create a more transparent and stable business environment.
During this year's Two Sessions, I had the opportunity to speak with several key figures. Their insights revealed how China is implementing institutional opening-up and what it means for global partners.
Peng Shou, a member of the Chinese Academy of Engineering and a deputy of the National People's Congress (NPC), emphasized that institutional reforms must be long-term and systemic rather than fragmented or case-specific. "A system is about lasting effectiveness. It's not a short-term action," he said. "It's not about handling isolated cases, but about involving everyone—society as a whole."
This vision is being realized through practical pilots across China. With 22 Free Trade Zones nationwide, and more than 110 innovative measures in places like Shanghai and Hainan, China has turned previously fragmented policies into coherent frameworks.
A notable example is the special customs operations in Hainan Free Trade Port, which simultaneously streamlines cross-border trade, strengthens digital infrastructure, and fosters high-tech industrial development.
Scenery of Longjiang River and Haitang River seen in Sanya, Hainan province, China, January 7, 2026. /VCG
Peng explained how leveraging processing technology and value-added measures can stimulate entire sectors, from high-tech manufacturing to innovation-driven services.
The model is also adaptable. "We may apply this negative list approach to other cities or development zones," Peng noted. "And we can build digital foundations in major hubs like Beijing and Shanghai, using AI and digital technology as a base."
Institutional opening-up isn't limited to trade rules. Kenneth Fok, a Hong Kong Special Administrative Region deputy to the NPC, highlighted the role of people-to-people exchanges. In 2025, China recorded 697 million entries and exits, a 14.2% increase year-on-year. Meanwhile, China signed mutual visa exemption agreements with 29 countries. Fok emphasized Hong Kong's potential to contribute to international cooperation, stressing the importance of working together to strengthen friendly exchanges.
Song Zheng, a NPC deputy and the president of the Hunan branch of the China Development Bank, underscored the benefits for foreign investors. "This type of institutional opening-up allows investors to see China's unique advantages and provides stability in today's uncertain global economy," she said. "It's something we're doing by uniting people across the country and gathering everyone's ideas."
The significance of institutional opening-up goes beyond aligning with global standards. It is about creating a transparent, predictable, and inclusive environment that not only attracts international partners but also strengthens China's own economic resilience. By embracing this new model, China is not only enhancing its position in the global market but also reshaping the very framework of its economic development for the future.