At a time when protectionism is rising and economic globalization faces growing headwinds, why does China remain committed to expanding opening up? What does its high-level opening up mean for the world?

In a recent interview with People's Daily, John Ross, former director for economic and business policy for the mayor of London and senior fellow at the Renmin University of China's Chongyang Institute for Financial Studies, shared his insights based on more than four decades of research on China's economy.

John Ross (Photo provided to People's Daily)

Q1: What has been the most striking change in China over the past 40-plus years?

A: The most striking thing is undoubtedly China's great success. When I began studying the Chinese economy in 1978, some people did not understand, saying that China was a developing country and that I should study Japan, Germany or the US. My answer was that China's development would be hugely successful because its economic theory was correct. Now, the facts have confirmed this, and many people are discussing China's development.

China's success is comprehensive. Its economy has grown steadily. Before 2005, I had never been to China, but from the perspective of economic policy and theory, I believed that China's thinking was very wise and would achieve great success. In 2005, I came to China for the first time, and I have been visiting ever since. In 2009, I began working at a university in China. Over the years, I have witnessed the implementation of major projects, and the most remarkable change has been the improvement in people's lives.

Q2: What experience in China impressed you most?

A: I believe the essence of the economy is not to build steel or buildings, but to put people's lives first. China's people-oriented approach is not a slogan, but the core purpose of the economy: to make people's lives better, so they can receive better education, enjoy better medical care and all the other things that allow them to lead a better life. Economic success and material progress must ultimately be reflected in improvements in people's lives.

To give a simple example, I often travel between Beijing and Shanghai. It used to take nearly a day, but now it takes about four hours by high-speed rail. This is the convenience brought to the public.

I was also deeply impressed by the Beijing Planning Exhibition Hall. It displays a city map from 1949, when the Forbidden City was one of the largest buildings in Beijing. Today, the city has undergone earth-shaking changes. Standing there, I was even more convinced that I chose the right field of research. The scale of China's transformation is extraordinary in human history.

Q3: How do you view China's shift from doubts about globalization to firm commitment to opening up?

A: I have always been a staunch supporter of globalization. As soon as China began its reform and opening up in 1978, I judged that this decision was part of what would lead to China's success. Since then, I have paid close attention to China. When China was at a low level [of development], it had to courage to open up to the outside world. Such courage and judgment are very rare.

From the perspective of economic theory, trade liberalization and economic globalization are inevitable choices, and it is impossible to realize real economic goals without the global market. If a country wants to become a technological and economic power, it must participate in the global division of labor and cooperation. China's success has proven this.

In the past, some believed that China could only imitate and assemble, and lacked innovation. Now, reality has completely changed that perception. China has become a global leader in fields such as electric vehicles, renewable energy and AI. This proves that China's decision to open up was correct. No developing country has achieved the same achievements as China in opening up.

Q4: Why has opening up become a consensus in China?

A: In my observation, Chinese people know much more about Western countries than Westerners know about China.

Chinese people have an open mindset, always look at the world from a head-up perspective, proceed from their own reality, absorb and learn from other countries, and use them for China? Openness has become a social consensus in China, embedded in its national character. More importantly, the Chinese people have gradually developed self-confidence through opening up, which is a brand-new change. This makes internationalization an inevitable choice for China.

Q5: Has China's focus shifted toward institutional opening up?

A: The focus of China's opening up has indeed changed, and this change is both necessary and wise. In the stage of factor-flow opening, China has completed the initial accumulation. Now, promoting institutional opening up is an inevitable requirement for China to deeply integrate with the international economic system.

China is playing an increasingly active role in international organizations. It has a deep understanding of international rules, has established an institutional framework in line with China's national conditions and international standards, and has carried out equal interaction and cooperation with these organizations. Institutional opening up is not opening up without principles, but building an institutional system that suits China while following general international rules. China's path has clear logic and steady steps, in line with its current stage and the broader trend of globalization.

Q6: Is openness essential for national development?

A: Indeed, opening up is an inevitable requirement for a country's progress. Each country has a different cultural foundation, and the way it opens up may also be different, but the core logic of openness is the same. London is a very open city, where people from all over the world live and work. Openness is the key to London's vitality.

China's opening up involves absorbing advanced international technology and rules into its own framework and innovating in combination with China's reality, which reflects a kind of wisdom in learning.

Q7: What are the consequences of rising protectionism?

A: The outcome of protectionism is necessarily negative, but this impact will not be globally devastating, because protectionist countries no longer have enough power to dominate the global economy and force others to follow their policies.

Specifically, there will be two trends: on the one hand, as some developed countries pursue protectionism, their economic situation will become sluggish and political conflicts will intensify. On the other hand, countries in the Global South will continue to move firmly toward globalization.

Protectionism cannot stop the overall trend of global openness. Most countries, especially emerging economies in the Global South, have not chosen protectionism. They continue to adhere to opening up. China and other countries support an open global economic system. Therefore, protectionism will hurt the global economy, but it will not be enough to reverse the long-term trend of openness in human history.

Q8: What does China's continued opening up mean for the global economy?

A: China's firm commitment to expanding high-level opening up will drive economic growth in both China and the world. China has a super-large domestic market and a complete industrial system, which are favorable conditions for the sustained improvement of its economy. China's expansion of opening up does not rely on external markets, but rather on achieving deeper integration with the international market based on its domestic foundation. In recent years, China has firmly pursued the path of open development and has reaped the benefits of openness, the economy has maintained stable growth and people have gained tangible benefits.

Most countries oppose protectionism and support globalization. These countries need a stable and open major power. As the world's second-largest economy and largest trading nation in goods, China is committed to expanding its openness and becoming a central pillar of the international trading system, attracting countries to cooperate. China's development achievements and open approach have demonstrated the value of cooperation. Since the beginning of this year, leaders from Europe and other regions have frequently visited China, recognizing that cooperation with China aligns with their economic interests.

Q9: Some say globalization has widened the wealth gap within countries. What is your take on this?

A: It is nonsense to blame globalization for the widening gap between rich and poor. The root cause of inequality in some countries is not globalization, but the failure of their domestic policies. It is wrong to attribute their own problems to globalization.

First, from a global perspective, globalization has promoted development in many countries in the Global South, including China, which is obvious to all. Vietnam, Indonesia and other countries have also achieved rapid globalization, and living standards have greatly improved, which is a positive result of globalization.

Second, the widening wealth gap in some Western countries is rooted in domestic policy failures. Take the US as an example: over the past few decades, wealth distribution has become increasingly uneven, and economic growth has not benefited ordinary people. This is a domestic policy issue, not a result of globalization.

Q10: Which aspect of China's opening up interests you most?

A: I am most interested in China's scientific and technological innovation. No other developing country can rank among the world's leaders in so many fields of science and technology like China. From being a technological leader in a few areas at the beginning of the 14th Five-Year Plan to becoming a global leader in electric vehicles, renewable energy, AI and other fields, mainstream Western media has reported on China's scientific and technological achievements. This transformation is remarkable.

The core of China's scientific and technological achievements lies in the high proportion of R&D investment and the high efficiency of converting this investment into products. Some figures exceed those of major Western developed economies, and most R&D investment is applied to the real economy and transformed into actual productivity. High-level R&D investment, deep integration with the real economy and scientific guidance – these three factors promote China's technological breakthroughs. I believe that the implementation of the 15th Five-Year Plan will allow China to lead in an increasing number of global science and technology fields, and through extensive cooperation with other countries, it will also promote the common interests of all nations.

Q11: How do you view China-Global South cooperation?

A: This kind of cooperation has made China an important leader among the countries of the Global South and provided a new path for their modernization. The BRICS cooperation mechanism is the most obvious example. The BRICS countries form a huge economic cooperation organization. Some individual countries tried to hinder it but failed. The reason is that cooperation among BRICS countries benefits all member states and provides new opportunities for each.

For countries in the Global South, the more trading partners they have, the greater their opportunities. As the world's largest trader of goods, China has firmly expanded its opening up, offering more cooperation options and opportunities for these countries, and helping them overcome bottlenecks to move toward modernization.

Q12: What message do you hope to convey about China's development to the world?

A: The renowned German philosopher Georg Hegel once said, "World history is the progress of the consciousness of freedom." Framed in modern terms, this means that at a certain stage of world history, the progress of one country determines and reflects the progress of humanity.

I firmly believe that, at the current historical stage, the core direction of human development is reflected in China's development.

China's rejuvenation does not rely on innate endowments but has chosen an open path suited to its national conditions, creating a historical opportunity. China's original intention in promoting reform and opening up was to solve its own problems, but in the end, it achieved the most successful economic development in human history and promoted the global economy. As an economist, I hope that through research, the world can understand China's path more objectively and use China's experience as a reference.

Past experience has allowed me to personally witness economic disaster, for example, shock therapy in Russia in the 1990s. But in China, I see vigorous social progress and continuous improvement in people's living standards. This stark contrast has given me a deeper understanding of China's opening-up. Understanding economic laws theoretically is one thing. Experiencing the course of different countries firsthand is another. China has chosen an open path suited to its national conditions and has presented a historical opportunity. Its opening up over the past 40 years has proved the correctness of this path with tangible results. I hope more countries can learn from China's experience and jointly promote the global economy in a better direction.