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China Daily Website

Communique reveals long-term economic goals

Updated: 2013-11-13 15:49
( Xinhua)

BEIJING - A four-day key meeting of the 18th Central Committee of the Communist Party of China ended Tuesday with a communique revealing the Chinese leadership's long-term goals.

The communique said the meeting has approved "a decision on major issues concerning comprehensive and far-reaching reforms." The decision, which contains many more details, is expected to be released soon.

According to the communique, "economic reform is key, and the core solution is the proper relationship between the government and the market, leaving the market to play the 'decisive' role in the allocation of resources, and the government to play a better role."

China will stick to the dominant role of public ownership, while encouraging, supporting and guiding the non-public sector, enhancing its vitality and creativity, the communique said.

Land in cities and the countryside, which can be used for construction, will be pooled together in one market, it said.

China will also lower the investment threshold, step up the development of free trade zones, and increase the opening up of inland, coastal and border areas.

Decisive results must be achieved in key sectors, and a well-developed, scientific, procedure-based and effective framework must be in place by 2020 to ensure institutions in all sectors have matured, the communique said.

Economists said the communique, as expected, was long on goals and short on details, and it clearly reiterates a progressive stance for further reforms.

Qu Hongbin, HSBC chief China economist, said the communique hints that the comprehensive reform plan, in the to-be-released decision, will likely contain at least three "positive surprises."

It will address the sensitive issue of income distribution, ensure that the judicial system at the local level is independent of local government interference, and will set up a central committee to coordinate and supervise the implementation of reforms, he said in a research note.

"All of these reform plans, combined with a medium- to long-term target of better defining the boundaries of the economy and the government, could allow for China's growth to be sustained at around 7 to 8 percent in the coming years," Qu said.

He also maintained that the disappointment was that there was no new statement pertaining to the reform of state-owned enterprises (SOEs) in China.

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