China elevated the role of markets in the nation’s economic strategy while stopping short of unveiling detailed policy shifts, after President Xi Jinping oversaw a gathering of Communist Party leaders in Beijing.
The nation will make markets “decisive” in allocating resources, according to yesterday’s communique from the third full meeting, or plenum, of the party’s 18th Central Committee. At the same time, the state will remain “dominant” in the economy, indicating limits on reducing government involvement.
China’s leaders are under pressure to revamp the nation’s finances as swelling local-government debt highlights the risk of a buildup of bad loans and state businesses’ access to bank funding crowds out small firms. The document didn’t discuss specific issues such as regional borrowing, interest rates or the one-child policy, while referring generally to giving farmers more property rights.
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