MNI POLICY: China's Xi Urges Domestic-Driven Development Model

     BEIJING (MNI) - China must focus on developing its enormous domestic market

to counter growing international pressure including rising protectionism and

weakening demand, President Xi Jinping said in a meeting with domestic and

foreign company executives on Tuesday. 

     "We must gradually form a new development structure with the domestic cycle

as the main body and with the domestic and international cycles complementing

each other," Xi said according to an official statement posted on the central

government website. 

     Xi urged China to focus on modernizing its industrial chains, pursuing

breakthroughs in core technologies and building new future advantages.

Globalization is still the "historical trend"  in the long term, and China must

stand on the right side of history, he said.

     Xi was joined by three members of the Politburo Standing Committee, but the

statement didn't mention Premier Li Keqiang. The companies represented mentioned

included Microsoft Corp. and Panasonic Corp.

     --PROACTIVE POLICY

     China will continue to implement a more proactive fiscal policy and a more

prudential and flexible monetary policy, make policies more targeted and timely,

so as to increase support to companies, Xi said.

     Xi also reiterated giving equal protection of property and independent

management rights to state-owned, private, and foreign-owned enterprises.

     Xi urged government officials to openly communicate with businesspeople to

understand their needs and difficulties while fighting corruption and bribery.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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