An aerial drone photo taken on Feb. 2, 2024 shows a container vessel berthing at the smart zero-carbon terminal of Tianjin Port in north China's Tianjin. (Xinhua/Zhao Zishuo)

"In terms of foreign relations, China has made it clear that it not only wants to advance internal reforms but also accelerate opening-up to the outside world. "

FRANKFURT, Aug. 6 (Xinhua) -- China has demonstrated its determination to further strengthen reforms and opening-up during the recently-concluded third plenary session of the 20th Communist Party of China Central Committee, a German economic expert has said recently.

The Chinese economy is currently at a crucial point in its development, and the global economy is also at a crossroads, Prof. Horst Loechel from the Sino-German Center at Frankfurt School of Finance & Management told Xinhua.

Against this backdrop, the plenary session "not only developed plans to address short-term challenges to maintain a stable level of economic growth but also introduced medium- and long-term plans for the next ten years," he said.

"The meeting also demonstrated how China continues to position itself internationally," Loechel said.

China is already an upper middle-income economy, Loechel said, adding that to continue ascending into the ranks of high-income countries, "China must continue to advance economic structural reforms and pursue the path of innovation and high-quality development."

He said new quality productive forces are also needed to increase productivity and thereby open up the possibility of further income.

Loechel said that such reform measures, especially support for non-state-owned enterprises, are important for boosting innovation.

Noting that consumption is an important growth driver for any economy in the world, Loechel said many measures announced at the meeting will help promote consumption in China.

The reform has "an indirect impact on consumption behavior, especially among low-income people, whose consumption increases when their income increases," he said.

"The reform of the Hukou system is very important for boosting consumption. This means that these low-income people do not have to save as much for health, education, etc., and can use this money for consumption," Loechel said.

"Another important measure is the reduction of child-rearing costs," Loechel said, adding that this would not only help promote the birthrate but also indirectly boost consumption.

If the costs for kindergartens, education and housing were reduced, people would have more money available for consumption, he said.

"In terms of foreign relations, China has made it clear that it not only wants to advance internal reforms but also accelerate opening-up to the outside world. I think this is an important and correct signal," Loechel noted.

In a world full of tensions, Loechel said, "a country like China, which remains open, fights protectionism, and wants to reduce tariffs, sends an important signal for the further development of the world economy."

"This is very positive, as it reduces existing tensions and shows that China is ready to cooperate with foreign companies at a higher level. This also strengthens the forces in Europe and Germany that want to expand cooperation with China and attracts foreign companies to continue to be active in China," he added.

Loechel is optimistic about the future cooperation and trade relations between China and Europe, and voiced confidence that their trade relations will continue to develop and expand.