BEIJING – Chinese President Xi Jinping, addressing the 19th National Congress of the Communist Party of China on Wednesday, proposed to continue with reforms to develop a modern economy with a greater presence of market forces.
The aim of achieving more market-based interest rates and exchange rates figured among the major financial aspects of the speech by Xi, who is also the secretary general of the CPC.
Moreover, he expressed willingness to ease access to foreign investment, open up markets and reinforce protection of intellectual property, all of which have been sought by China’s major economic partners such as the European Union and the United States.
Xi spoke of the need for negative lists – which lay down the sectors and businesses that are off limits to some market entities – for market access across the country, supporting the growth of private businesses and stimulating market agents.
He also stressed the importance of improving the system of financial supervision and control to avoid systemic financial risks.
Regarding the powerful state-owned firms, Xi advocated continuing with the current process of reforms – which he called strategic reorganization – with the aim of developing first class globally competitive firms.
The president talked about opening up these companies to private capital, emphasizing the need for forming public-private corporations, although he refrained from talking about privatizations.
Addressing another need discussed by economists in recent years, the Chinese president mentioned his commitment to carrying out extensive tax reform to bring about a modern fiscal system, with a clear division of powers and responsibilities between the central, provincial and local administrations.