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--China to Adopt New Vision of Quality-First Development
--Gov't to Further Deepen Institutional Reform
--Supply-Side Structural Reform to Serve as 'Main Guideline'
BEIJING (MNI) - China will leap to become a "new innovation" world leader
in just under two decades by boosting its economic and technological
capabilities, President Xi Jinping said on Wednesday.
The world's second-biggest economy will pursue a "quality-first"
development vision led by the ruling Communist Party of China, Xi, who is also
the party's chairman, said in Beijing at the opening of the 19th CPC National
Speaking non-stop for more than three hours, Xi touched on everything from
stamping out corruption to extolling healthier living to the virtue of a "grand
revival" of Chinese culture, urging the 80-million-plus members of the communist
elite to "strive for 30 years" and build a rich, strong and democratic nation
with modern management and governance.
Xi's two-phase vision for the nation's further development -- basically
realizing "socialist modernization" by 2035 and then becoming a "great socialist
country" by 2050 -- is marked by the centennials of the Communist Party,
established in 1921, and the People's Republic, founded in 1949.
China is still likely to target a moderately high GDP growth number at the
National People's Congress next March, ANZ Research said in a report following
Xi's speech. To be an "innovative economy" like South Korea by 2035, China's
gross domestic income per capita needs to rise by an average of 6.6% in real
U.S. dollar terms or 4.5% in purchasing power parity terms, starting 2017,
according to ANZ.
To be a modernized economy by 2050 -- or a high-income country by the World
Bank's standard -- the required average growth rates should be 4.9% in U.S.
dollar terms and 3.3% per year in PPP terms over the next 35 years, ANZ said.
Xi said in his opening speech that China "should endeavor to develop an
economy with more effective market mechanisms," make smaller businesses more
dynamic, and uphold sound macro-management principles.
"We will move Chinese industries to the medium-high end of the global value
chain, and foster a number of world-class advanced manufacturing clusters," Xi
Xi stressed that China must now pursue more balanced growth after securing
its bread-and-butter needs. Society's major challenge has shifted to "people's
needs for better lives versus unbalanced, inadequate development," he said.
China will further deepen institutional reform in the financial system to
serve the economy and forestall systemic financial risks, Xi said. The
government will also improve the framework of regulation backed by monetary and
macro-prudential policies, and push interest rates and exchange rates to be more
market-based, he said.
Stressing the need to further supply-side reform, a pet project that Xi
championed in his first term, Xi repeated that China must continue to focus on
the real economy, and reduce overcapacity and debt. "We should pursue
supply-side structural reform as our main guideline" to optimize the economic
structure and foster new growth drivers, Xi said.
State-owned companies (SOEs) must be "stronger, better and bigger," Xi
said. The government will deepen the reform of this sector, promote a
mixed-ownership economy and nurture world-class businesses, he said.
China will also enhance the system that boosts consumption to strengthen
the fundamental role that spending plays in the economy, Xi said.
On foreign relations, Xi reiterated China will promote its "One Belt, One
Road" initiative and support multilateral trade systems, while actively
participating in global governance.
During the week-long convention, Xi is expected to display that he has
consolidated his grip over the party and China, paving the way for his second
five-year-term as the leader of almost 1.4 billion people.
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