Guest blogger Lawrence J. Lau makes the case for keeping the trade door open, outlining options for China and the world.
The “open door” policy was a critical component of the economic reforms China introduced in 1978, opening the country to the outward and inward flow of goods and services, of capital, and of people.
Deng Xiaoping’s government brought China into the globalised economy, expanding international trade and attracting foreign direct investment, which brought with it capital, technology, markets, new business models and methods needed after decades of relative isolation. It permitted hundreds of thousands of Chinese scholars to go abroad for exchange and advanced study, and let foreign experts become involved with China. The “open door” underpinned the extraordinary growth of the Chinese economy over the past three decades.
