Opening-up helps spur competition, researcher says

China's decision to ease market access for foreign companies and expand imports will not only provide a boost to foreign businesses but also benefit domestic companies through competitive pressure, according to a senior US researcher of the Chinese economy.

Arthur Kroeber, founder of the China-focused Gavekal Dragonomics research service, said in an interview that foreign businesses had already felt the benefits from China's new round of measures to expand opening-up by gaining greater market access.

He gave the example of Exxon-Mobil and BASF establishing wholly owned petrochemical ventures in southern China's Guangdong province, and the relaxation of equity caps in the automotive sector.