Chinese concepts of race and nationality are hopelessly intertwined and Chinese nationalism has been increasing, not decreasing, over the past generation. In recent times, the very best chance of China becoming open—even in comparison to its neighbors—was in the late 80s... and we all know how that ended. The climate hasn't gotten close to being that tolerant since, and in the past five years, political control has tightened considerably.
Of course it is possible to reverse course and open up, but it would take quite a bit of time to change in the ways you're suggesting.
> Of course it is possible to reverse course and open up, but it would take quite a bit of time to change in the ways you're suggesting.
Interestingly, it might not need to open up all that soon to still reap the benefits. If in the future the US is also not very open, but China is apparently making strides to become more open, that could affect long term planning.
I also wonder if China, having more control and less ethos built up around inherent fairness of immigration (if that's true?) might be able to just say "10+ years in China as an academic or high end research position in X/Y/Z industries will get your pernanent residence."
I would expect that role to be filled more by Hong Kong than by the mainland, and in Hong Kong's case, that's how permanent residency works. If you maintain uninterrupted residency in the HKSAR for a period of 7 years, you get your HKID.
It's also a relatively open place for foreigners, English is commonly spoken (and an official language, so all government documents can be completed in English, and all laws translated). Except when meddled with, it retains a high degree of autonomy from the mainland, and very much follows rule of law under HK basic law. Due to it's unique situation, it's also fairly apolitical.
HK companies also have the advantage of not being taxed on non-HK source revenue and have no trouble doing business with/in the mainland.
Of course it is possible to reverse course and open up, but it would take quite a bit of time to change in the ways you're suggesting.