Liu He, head of the People’s Republic of China’s Office of the Central Leading Group for Financial and Economic Affairs, says,
We’ll open wider to the world across the board[.]
Liu promised that the PRC would
- “substantially” open up the services industry, particularly the financial sector
- let foreign securities firms own majority stakes in their Chinese ventures and…scrap foreign ownership limits on Chinese banks
- reiterated past promises to relax restrictions on foreign companies in manufacturing, including in railway equipment, and to gradually lower tariffs on imported products such as automobiles
Even if they do these things (and that’s no certain thing: notice those past, unkept, promises), Liu’s—and Xi’s—rhetoric is just wind in the trees as long as the PRC demands that
- foreign companies partner with domestic companies as a condition of doing business in the PRC
- foreign companies are required to “share” technology and other intellectual property
- foreign companies are required to give backdoors to the PRC government for the latter’s entry into those companies’ critical software and other proprietary information.
This not only is “legalized” theft, it’s backdoor protectionism.