institutional opening 制度型开放 zhìdù xíng kāifàng
Since its first mention at the 2018 Central Economic Work Conference, ‘institutional opening’ has risen as a trade and development priority for Beijing. Referring to ‘behind-the-border’ opening, addressing non-tariff barriers, and improving standards and policies beyond its WTO commitments, it is now frequently spotlighted in high-level conclaves such as Two Sessions and the Third Plenum.
Against shifts in geopolitics and emerging trade trends, ‘institutional opening’ is becoming integral to the process whereby Beijing is renegotiating and rewriting trade rules with the world. Much exploration and trial-and-error is in train. While advanced trade rules like CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) guide some reform efforts at home, Beijing is also championing norms-setting agendas of its own as a counterweight, not least via friendly bilateral initiatives and regional pacts such as BRI (Belt and Road Initiative) and RCEP (Regional Comprehensive Economic Partnership). Action is also underway to test new ‘institutional opening’ rules via the country’s many special zones, such as the FTZs (free trade zones).