Open Door 3.0 heralds a new growth era

Concerns over a looming US-China trade war created tremendous market volatility in the past months. But it appears unlikely that an all-out trade war between the world's two largest economies would break out.

Even more positively, in his keynote speech at the Boao Forum for Asia in Hainan province last month, President Xi Jinping announced a new round of opening-up, which we term as China's "Open-Door 3.0".

In December 1978, former leader Deng Xiaoping set in motion the transformation of China's economy when he announced the reform and opening-up policy. Since then, China's policy to open up its economy to the rest of the world has constituted an essential part of the overall economic reform. As a first step of opening-up, four special economic zones were established in southern China, and tax incentives were offered to attract foreign capital, knowhow and businesses.