China says it will encourage the development and expansion of private economy

China’s Senior Party Official For Policy Research:

• Promoting Chinese-style modernisation faces many complex
  contradictions and problems, but it is necessary

China’s senior party official for deepening reform:

• We have consolidated and developed the advantages of the socialist
  system with Chinese characteristics
• We will continue to
  improve and develop the socialist system
• We will inject
  strong impetus into economic development
• We will continue to
  reform the socialist market economy
• We will improve the
  modern market system and promote market-orientated reform of factors
  of production
• We will deepen
  reform of state-owned enterprises
• Will encourage the
  development and expansion of private economy
• Will build systems
  and mechanisms to support comprehensive innovation
• Will deepen reform
  of the fiscal, taxation and financial systems
• Improve the systems
  and mechanisms for integrating urban and rural development
• Will build a new
  system of an open economy at a higher level
• The functions of
  party and state institutions adapted to the new situation and have
  been continuously improved
• We will promote
  income distribution
• Promote the
  establishment of the world’s largest education, social security,
  medical and healthcare systems
• Will win the largest
  battle in history against poverty
• Will improve the
  centralised, unified, efficient and authoritative national security
  leadership system
• Will continue to
  improve the party’s leadership system and improve the supervision of
  the party and the state
• Will establish and
  improve a comprehensive approach to tackling corruption
• By 2035 the
  country’s governance system and governance capacity will be basically
  modernised

China’s senior party official for economic affairs:

• Should promote state-owned capital and enterprises to become
  stronger, better and bigger, enhance their core functions and
  competitiveness
• On the other hand,
  should create a good environment, opportunities for private
  enterprises
• Improve the
  long-term participation of private enterprises in major national
  projects
• Should formulate and
  promulgate law on promoting private economy
• Should greatly
  increase total factory productivity
• Propose to improve
  the financial relationship between the central and local governments
• Increase local
  independent financial resources and expand local tax sources

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Plenty to consider in the above. Its all encouraging but until details emerge, which won’t be until a few months time I suspect, its hard to get too excited. Government authorities, it doesn’t matter which country, tend to paint a rosy picture.

This article was written by Eamonn Sheridan at www.forexlive.com.