Huang Chaochun: Expand institutional openness and shape a "horizontal division of labor" trade order
Understanding China "is a grand theme. Where to read from? How to understand? There are different perspectives, but the Guangdong Hong Kong Macao Greater Bay Area and the theme of high-level opening-up are the most representative and explanatory perspectives.
The Guangdong Hong Kong Macao Greater Bay Area has witnessed the process of China's reform and opening up and contributed to the achievements of China's reform and opening up. In the past, in the era of open commodity and factor flow, China mainly faced the problem of embedding and integrating into the world trade system; Now, in the new era and new journey, the starting point and foothold for steadily expanding institutional openness is to answer the question of how China can better integrate, utilize and participate in building the world trade order after the changes in global industrial division of labor.
Since the reform and opening up, China's foreign trade pattern has gone through a development stage of low-end embedding and mid-range leap to high-end breakthrough. In the 1980s and 1990s, China's trade was at the low-end of the global industrial chain in the processing and manufacturing sector, with a "two ends outside" trade model as the main approach, embedding itself into the global industrial chain through labor cost advantages; After joining the World Trade Organization (WTO) in 2001, China became the "world factory" and moved towards the middle end of the industrial chain, gradually breaking away from its dependence on a single labor-intensive product; Since the 18th National Congress of the Communist Party of China, as "Made in China" moves towards "Made in China", China has entered the high-end and even leading positions in multiple emerging fields of the global industrial chain, becoming a key hub connecting raw material supply countries and end consumer markets in the global industrial chain.
By analyzing the development process of this trade, we can see the economic logic behind the current global trade order. In the past, developed countries and developing countries were a "vertical division of labor" system for industry and trade. Developed countries were at the high end of the industrial chain value chain, while developing countries were at the middle and low end of the industrial chain value chain. Through trade, a complete industrial chain value chain was formed through division of labor and cooperation. Now, with the upgrading of industries in developing countries, there has been a "horizontal division of labor" between developed and developing countries in some fields, but some countries still adhere to the "vertical division of labor" thinking and use "small courtyards, high walls" and "tariff sticks" to undermine global trade rules. Behind the friction in the trade order, it reflects that some developed countries are restraining the legitimate development rights of developing countries in order to defend their so-called "vested interests", with the aim of permanently restricting developing countries to the lower end of the industrial chain.
Currently, the world is in a critical period of accelerated evolution of unprecedented changes. The change in the pattern of industrial division of labor is the logical basis for steadily expanding institutional openness; Steadily expanding institutional openness requires planning based on changes in the pattern of industrial division of labor. Therefore, we need to re-examine and return to the essence of trade.
Trade is the optimization of resource allocation across time and space based on comparative advantages. The core is to achieve mutual benefit and win-win through exchange, allowing trade participants to break through their own production, geographical, and time limitations, and obtain more utility, wealth, or development opportunities than self-sufficiency. Whether it is "vertical division of labor" or "horizontal division of labor", trade can achieve a win-win situation through mutual exchange and learning from each other's strengths and weaknesses. To stand on the moral high ground of building a community with a shared future for mankind, to interpret the correct trade stance with a just voice, to refute erroneous trade policies with theoretical logic, to promote world trade back on the right track, to improve the level of open economy on a larger scale, in a wider range, and at a deeper level, and to guide economic globalization towards the right direction.
We need to deeply understand the key role of a reasonable trade order in promoting a new round of technological innovation and industrial revolution. Overall, the "vertical division of labor" mainly brings about the optimization of resource allocation and the expansion of production possibilities; Horizontal division of labor "stimulates market competition, promotes human scientific discovery and technological progress through spillover effects of circulation, driving effects of innovation, and inducing effects of demand. At present, human exploration of natural laws has approached the cognitive boundary, and the difficulty of breaking through is far greater than before. It is even more necessary to integrate innovative elements and form innovative synergy in a reasonable trade order, thereby accelerating the breakthrough of technological revolution and industrial transformation; If the trade order is artificially disrupted, it will inevitably hinder the arrival of a new round of technological revolution due to the rupture of the innovation chain, industry chain, and talent chain.
The Guangdong Hong Kong Macao Greater Bay Area is a pilot field for institutional openness. We must firmly uphold the multilateral trading system with the World Trade Organization at its core, actively shape a trade order based on the logic of "horizontal division of labor", enhance the linkage effect between domestic and international markets and resources, and promote the construction and maintenance of a fair, just, open, inclusive, and cooperative international economic order.
One is to steadily promote open transformation. Steadily expanding institutional openness in terms of rules, regulations, management, standards, etc., by deepening reforms in foreign trade, foreign investment, and foreign investment management systems, actively aligning with international high standard economic and trade rules, and achieving international rule connectivity and compatibility.
The second is to actively expand independent opening up. Expand unilateral open areas and regions, expand market access and open areas for service trade, optimize regional open layout, and coordinate the construction of major open cooperation platforms such as scientific and technological innovation, service trade, and industrial development.
The third is to promote innovative development in trade. Promote the improvement of foreign trade quality and efficiency, optimize and upgrade goods trade, vigorously develop service trade, innovate and develop digital trade, expand intermediate goods trade, green trade, support the development of new formats and models such as cross-border e-commerce, and promote balanced development of imports and exports.
The fourth is to expand the space for two-way investment cooperation. Shaping new advantages in attracting foreign investment, implementing the principle of "access and operation", reducing the negative list of foreign investment access, and promoting domestic reinvestment of foreign investment. Establish a sound service guarantee system for foreign investment, fully implement national treatment, promote trade and investment integration, and guide the rational and orderly cross-border layout of industrial and supply chains.
The fifth is to optimize the construction of open platforms. We will improve the high-quality mechanism of jointly building the "the Belt and Road", implement the strategy of upgrading free trade zones and free trade ports, encourage innovative and integrated exploration, and create a new highland of openness with a higher level of openness and stronger radiation. (The author is the Party Secretary, Researcher, and Doctoral Supervisor of Guizhou Academy of Social Sciences. This article is excerpted from the author's speech at the Bay Area Dialogue of the "Understanding China" International Conference (Guangzhou) Sub Forum on December 2, 2025.)