Opening-up is the choice after 40 years' practice

Opening-up is still China's choice. In the past 40 years, China undoubtedly has been the largest beneficiary of the current world order, particularly the free trade regime maintained by the World Trade Organization and other international trade and financial architectures. Therefore, China has no reason to undermine this order. As for the trade imbalances between China and the US, they will not be resolved by a trade war. More fundamental changes are needed on both sides. In particular, Americans should increase their savings, and Chinese should increase their consumption.

The share of consumption in China's GDP has increased by 6 percentage points since 2010. The Chinese economy is on the way to rebalancing. In his report, Li calls for "strengthening consumption's fundamental function for economic development". As income in China continues to rise, the country will transform from "the world's factory" to a consumption center. As a matter of fact, China has run trade deficits with the rest of the world other than the US in most years since it joined the WTO.

There is a strong consensus on reform and opening-up in China. And the course of the country cannot be easily reversed. This provides the foundation for China to play a constructive and stabilizing role on the world stage.

The author is Cheung-Kong scholar and Boya Chair professor, and head of the National School of Development and China Center for Economic Research, Peking University.