Openness benefits everyone, forum told

Sir Martin Sorrell, founder of WPP, the world's largest advertising and public relations company and now executive chairman of marketing services company S4 Capital, also took part in the meeting. He welcomed the new initiatives for opening up the economy but said he believed that some have exaggerated the difficulties of doing business in China.

"I have been coming here since 1985 and I have found it relatively easy. You need to qualify that because it is never actually easy building a business outside your own country," he said.

"Where foreign multinationals often come unstuck in China is that, even if they acquire 100 percent ownership of a local business, they fail to retain its character, strength and vitality. So it is not just about the rules."

Ian Goldin, professor of globalization and development at Oxford University, said China is now building on the progress it made in the first 40 years of reform and opening-up.

"We have the new Foreign Investment Law, you see the openness also in people flows in terms of Chinese tourists and students going abroad and China's increasing participation in international affairs," he said.

Sir Mark Moody-Stuart, former chairman of Royal Dutch Shell and now chairman of the United Nations Global Compact, which encourages businesses to adopt more environmentally friendly and socially responsible policies, also believes the business environment is improving.

"They are lowering the barriers to entry for foreign companies and tightening up on intellectual property theft as well as making illegal forced technology transfers. There is clearly progress."

Roland Berger, founder and honorary chairman of Roland Berger, the international management consultancy, said there is still a need for further opening-up.

"If China can invest in Europe freely, for example, then European companies should be able to invest in China freely as well. I don't think the reciprocal balance is quite right yet," he said.

"There have been advances, however. Companies could once only previously operate as joint ventures and now many foreign companies have majority or 100 percent ownership. China is opening up step by step, but it is a long process－(though) if it could be speeded up there would be major benefits for China's growth."