Updated 11:29 AM EDT, Tue, Jun 16, 2020

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China Seen to Strengthen Economic Reforms

China Economic Reforms (Flickr)

(Photo : Flickr/Lyn Gateley) China Seen to Strengthen Economic Reforms

China will continue to implement more economic reforms through its proactive financial and monetary policies.

In a statement released after a meeting by the Political Bureau of the Communist Party of China Central Committee, the policy making body vowed to "stabilize and improve its macroeconomic policies" in order to achieve its economic and social development goals this year, the China Daily reported.

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Among the key proposals made during the meeting was the strengthening of the coordination of industrial, regional, investment, consumption, price, land and environmental protection policies, as well as carry out reforms in key fields to achieve better results. Moreover, participants to the meeting agreed that as part of China's economic reforms, there was a need to promote innovation and release domestic growth capital.

To sustain the strong start of the Communist Party's 13th Five Year Plan (2016-20), proposals were made to increase efforts to balance multiple economic tasks this year, including stabilizing growth, advancing reforms, carry out restructuring efforts, improving people's livelihoods and preventing risks.

Moreover, the need to implement supply-side structural reforms was also proposed, as well as the improvement of people's livelihood. Delegates to the gathering also agreed on the need to improve governance as a strategy to better serve the people and strengthen the implementation of China's economic reforms.

The Central Committee meeting comes at a crucial time, as the 19th CPC National Congress is scheduled to convene later the year. Two major sessions will be held prior to the Congress, which include the annual meetings of the country's top legislature and the top political advisory body.

In the meantime, the Chinese government plans to establish a 30 billion RMB fund ($4.38 billion USD) as a way to encourage high value-added service exports, according to the Chinese newspaper Economic Information Daily via Forbes

This move is in line with China's efforts to reduce its focus on manufacturing and attempts to restructure towards a service-based economy. Furthermore, the creation of the fund aims to reinforce China's current approach toward service sector reform, with a specific focus on non-traditional sectors.

Analysts have noted that China's economic reforms, specifically those designed for the service sector, have been slow in addressing traditional areas such as public education and healthcare since the state is deeply involved in these industries. 

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