China is making a bold push for an open world economic setup. At the biggest and most-viewed event in China’s political arena, the 19th National Communist Party Congress that held in Beijing, President Xi Jinping said China is in support of an open world economy. He announced that the country is ready to make market-oriented restructuring to its financial system and its foreign exchange rate. The Chinese president also said that he is keen on letting the market play a decisive role in the allocation of resources.
The Congress, which is held twice in a decade is more or less like a closed-door election that the party uses for choosing new set of leaders. The top-ranking officials will be announced next week on Wednesday and analysts are predicting that Xi will consolidate his power base during the Congress. In fact, it won’t be surprising if the party grants Xi Jingping a second five-term extension.
While he hinted about the benefits of a socialist system, Xi expressed that the government will “promote strengthening, improvement and expansion of state capital, (and) effectively prevent loss of state assets, deepen reform of state-owned enterprises, development a mixed-ownership economy and cultivate globally competitive world-class firms,”
The party’s convention saw in attendance over 2,000 pre-screened Chinese Communist Party members and a member from the estranged territory of Taiwan, in attendance. With the success of his first term, some believe that Xi’s will come out more powerful for his second term and will be able to push through structural and economic reforms easily.
The journey so far with Xi at the helm
During President Xi’s first term, China experienced one of its worst economic crisis as the stock market crashed enough for many people to lose their lifetime savings. In addition, Xi’s fight against corruption saw many business leaders and top government officials locked away and a sharp fall in the country’s currency almost threw the country’s economic growth into jeopardy.
However, despite the economic crisis that China had experienced, the country has managed to sail through and the Chinese economy is expanding at an enviable rate that most Western nations could only imagine. However, analysts are of the opinion that the Chinese government has not done much to tackle the mounting debt that is weighing down China’s economic growth.
In 2015, the International Monetary Fund endorsed China’s currency, the Yuan as a reserve currency, registering it in the elite list that includes U.S. dollar and the British pound. In addition, Xi’s zeal to make China great again is reflected through the global deals that Chinese companies are making. Last year, the government recorded the total sum of $170 billion in overseas deals after China loosened its grip on the international market.
Will President Xi do better over the next five years?
President Xi has reaffirmed that China’s doors will be opened wider and that the government will loosen its grip on foreign policies to attract foreign investors. He added that the country would support the development of private firms and encourage all types of market entities.
The country is budgeting huge sums, which will be used in building of roads, ports and other infrastructure along the “silk road” as part of it plans to create a growing trade network with Europe, Asia and Africa.
Speaking further, the President rejected any form of copying of any foreign political system. He noted that the middle of the 21st century, the Communist Party would develop China into a great modern socialist country. While acknowledging China’s influence on in the world, President Xi reassured it will not be a threat to any country but strive to foster peaceful development in the international community.