China’s new growth model will ‘create opportunities’ for foreign firms

China will create opportunities for foreign companies under an economic model based on quality rather than breakneck growth, and there will be new measures to open up its markets this year, Liu He said in a speech at Davos on Wednesday.

Liu, top economic aide to President Xi Jinping and a member of the powerful Politburo, said the central government was studying “fresh and more forceful” market-opening measures this year, and some could “exceed the international community’s expectations”.

Leading the Chinese delegation at the World Economic Forum, Liu said the measures were part of Beijing’s plan this year to mark the 40th anniversary of the nation’s opening-up – a policy that created the country’s economic miracle and led to it becoming the world’s second largest economy.

Liu is seen as China’s economic mastermind and is expected to take a key role in the country’s economic and financial affairs in the coming years. He told political and business leaders at the meeting that quality economic growth was now the priority and Beijing aimed to boost new sectors, particularly green and low-carbon industries, that have “created new opportunities not only for China but also for global companies”.

His speech at the Swiss Alps resort comes amid heightened tensions between the world’s two largest economies over trade. Washington has labelled China as a competitor and, frustrated with its market restrictions, is taking a tougher line on trade actions against Beijing. US President Donald Trump on Monday announced import duties on Chinese solar power components and washing machines.

“China has the world’s largest middle-income group ... and we believe that an open market with that group – which numbers some 400 million and is rapidly growing – will make a significant contribution to global development,” Liu said.