How to smoothen path for further opening-up

Over the last four decades, China has integrated into global networks in trade, finance, data and culture. But, as the United States has embraced protectionism, continued progress on global integration will require China to adjust its approach.

In the 20 years since China's State-owned enterprises began listing shares and raising funds in the Hong Kong Special Administrative Region, the city - known for its low tax rates and rule of law - has become a global financial center. The SAR has served as a catalyst and intermediary for broader financial-market liberalization in China, offering a kind of buffer zone for experimenting with the interactions between the Chinese mainland and offshore renminbi financial markets.

Thanks to this approach, China's share of global debt and equity markets has increased sharply. In 2004, China accounted for 1.2 percent of the world bond market, compared with 42.2 percent for the US, 26.5 percent for the European Union, and 18.7 percent for Japan. By the end of 2018, China's bond market had expanded to account for 12.6 percent of world total, while the US' had shrunk to 40.2 percent, the EU's to 20.9 percent, and Japan's to 12.2 percent.