Xi tells visiting Americans China is planning "to comprehensively deepen reform"
The smiling Chinese President responds to "Peak China," opens door to broader China-U.S. people-to-people exchanges, and looks forward to "better" China-U.S. relations.
Xi Jinping told visiting American CEOs, scholars, and interlocutors on Wednesday, March 27 that
I have repeatedly emphasized that reform and opening up are crucial tools for contemporary China to catch up with the times. China's reform will not pause, and its opening-up will not cease. We are planning and implementing a series of significant measures to comprehensively deepen reform, continuously build a first-class business environment characterized by marketization, rule of law, and internationalization, and provide broader development opportunities for enterprises from various countries, including those from the United States.
That Xi underlined the upcoming reform confirms what I shared earlier here in Pekingnology and should serve to put it on many more people’s radar.
Xi Jinping promises a new wave of "reform" since 2013
Beijing mulls "not only the sequel of practice...since the 3rd Plenary Session of the 18th CPC Central Committee, but also...a new chapter of advancing Chinese modernization"
I’ve been traveling lately so this post has been delayed for almost two weeks. (I had the fortune of taking part in two wonderful events - the Salzburg Global Seminar on China and the 6th Baghdad International Dialogue) From what I have read, the topic I intended to cover still hasn’t garnered much attention either within or outside China. So I’m trying to flag it.
On February 19, Xi Jinping chaired the fourth meeting of the Commission for Comprehensively Deepening Reform of the 20th Communist Party of China Central Committee and said, according to the official readout of the meeting
今年是全面深化改革又一个重要年份，主要任务是谋划进一步全面深化改革，这既是党的十八届三中全会以来全面深化改革的实践续篇，也是新征程推进中国式现代化的时代新篇。要坚持用改革开放这个关键一招解决发展中的问题、应对前进道路上的风险挑战。要继续抓好有利于扩大内需、优化结构、提振信心、保障民生、防范化解风险的改革举措，集中解决最关键、最迫切的问题。要科学谋划进一步全面深化改革重大举措，聚焦妨碍中国式现代化顺利推进的体制机制障碍，明确改革的战略重点、优先顺序、主攻方向、推进方式，突出改革问题导向，突出各领域重点改革任务。改革举措要有鲜明指向性，奔着解决最突出的问题去，改革味要浓、成色要足。要充分调动各方面改革积极性，进一步凝聚改革共识，举全党全国之力抓好重大改革任务推进和落实，广泛听取各方面意见和建议，及时总结基层和群众创造的新鲜经验，激励广大党员、干部担当作为，推动形成勇于创新、真抓实干、开拓奋进的浓厚改革氛围。
This year is another important one for comprehensively deepening reform. The primary task is to make plans for further comprehensive reforms, which is not only the sequel of practice in this regard since the 3rd Plenary Session of the 18th CPC (Communist Party of China) Central Committee, but also represents a new chapter of advancing Chinese modernization. It is imperative to stick to the critical move -- reform and opening up to solve the problems in the course of development and tackle the risks and challenges on the way ahead. Efforts must be sustained in effectively implementing the reform measures that help expand domestic demand, optimize structure, boost confidence, safeguard people's wellbeing, and prevent and defuse risks. Concentrated efforts need to be made to solve the most crucial and pressing problems. Major measures should be soundly planned to further reform on all fronts, focusing on the systemic and institutional obstacles that hinder the smooth progress of Chinese modernization. It is essential to clarify the strategic focus, priority order, main direction, and methods for advancing the reform, emphasizing a problem-oriented approach and highlighting key reform tasks in various fields. Reform measures should be distinctly targeted, aiming to solve the most pressing issues with great intensity and high quality. It is vital to fully mobilize the enthusiasm for reform from all sides, further converge consensus on reform, and harness the strength of the entire Party and the nation to advance and implement major reform tasks. It is essential to extensively listen to opinions and suggestions from all quarters, timely summarize fresh experiences created by the general public at the primary level, and motivate Party members and officials to take responsibilities so as to create a robust reform atmosphere, in which people can engage in innovation, strive for practical outcomes, and forge ahead.
The text alone makes it clear
China is now “making plans for further comprehensive reforms.”
Xi proactively pairs the upcoming reforms to the same scale as the Decision Of The Central Committee Of The Communist Party Of China On Some Major Issues Concerning Comprehensively Deepening The Reform adopted at the 3rd Plenary Session of the 18th CPC Central Committee on November 12, 2013
It’s a process that will take time because the making of the reform package will “extensively listen to opinions and suggestions from all quarters.” That likely suggests written reports, seminars, and meetings with many stakeholders in the CPC, government, academia, business, and other sectors.
Also, the readout of the meetings of the Commission for Comprehensively Deepening Reform is typically limited to summaries of particular documents reviewed in the meetings, as was the case in the 3rd and 2nd meetings of the commission of the 20th CPC Central Committee, as well as the 27th, 26th, and 25th meetings of the commission of the 19th CPC Central Committee. The 1st meeting of the commission of the 20th CPC Central Committee made some broad calls for furthering “reforms” but didn’t go specific.
Part of the reason why the paragraph has got little attention is perhaps that there is a fatigue with Beijing’s record and discourse on reforms. The 1st meeting of the commission declared
It was emphasized at the meeting that since the 18th CPC National Congress, we have deepened the reform in an all-round way with great political courage, adhered to our goals as guide, highlighted problem-oriented approach, dared to break into uncharted waters, tackle tough issues, wade through dangerous rapids and face new issues and challenges, resolutely eliminated the drawbacks of various institutional mechanisms, and opened up a new situation with unprecedented strength. In the first 10 years of the new era, the reform we have promoted is comprehensive, in-depth and fundamental, and the achievements we have made are historic, revolutionary and pioneering. There is no country or political party in the whole world that has the political courage and historical responsibility to carry out such a bold and inward-looking self-reform. There is either no country or political party that can promote reform in such a wide range of areas, at such a large scale, with such a powerful strength and in such a short period of time. This is a distinctive feature and significant advantage of the socialist system with Chinese characteristics.
On the other hand, many, including those within China, found recent “reforms” to be significantly underwhelming.
Perhaps another technical reason is the Feb. 19 readout is titled
习近平主持召开中央全面深化改革委员会第四次会议强调：增强土地要素对优势地区高质量发展保障能力 进一步提升基层应急管理能力
Xi Jinping presided over the fourth meeting of the Central Committee for Comprehensive Deepening Reform, emphasizing: Enhance the ability of land resources to guarantee high-quality development in advantageous regions and further improve grassroots emergency management capabilities.
And the lede of the readout didn’t mention the pledge of new reforms either. That is to say, the paragraph is buried very deep.
Xi in his recent domestic inspection trips has also frequently asked local cadres to put more effort into “reforms.” His most recent domestic inspection trip took him to Tianjin from Feb. 1 to 2, just ahead of the Lunar New Year, where the official readout says
Xi stressed that reform and opening up are the key source of momentum for the development of all causes. He called on Tianjin to conscientiously summarize how its reform measures were implemented, and make plans for implementing new measures in accordance with the new developments in situations and missions, so as to ensure that the reform is more accurate, targeted and effective. It is particularly important to achieve greater progress in improving the systems underpinning the market economy, working unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector, developing new systems for a higher-level open economy at a faster pace, advancing regional integration, and innovating the systems and institutions for improving Beijing-Tianjin integrated development.
In his visit to Shanghai from Nov. 28 to Dec. 2 2023, the official readout says
Xi stressed that Shanghai, as the forefront of China's reform and opening up and an international metropolis with close links to the world, should comprehensively deepen reform and opening up from a higher starting point so as to advance its driving force for development and competitiveness. It is imperative to vigorously promote pioneering reform and leading opening up on all fronts, and strengthen the integration of reform systems. The pilot comprehensive reform should be advanced in a down-to-earth manner in Pudong New Area, stress tests should be first conducted in Lingang new area, and institutional opening up in terms of rules, regulations, management and standards should be steadily expanded. It is imperative to further promote high-level opening up in cross-border trade in services and investment, boost the level of opening up in the manufacturing industry, further upgrade the level of Hongqiao International Open Hub, continue to host two-way open platforms such as the China International Import Expo, and accelerate the formation of policies and institutional systems with international competitiveness. It is a must to unswervingly consolidate and develop the public sector and unswervingly encourage, support and guide the development of the non-public sector, deepen the reform of state-owned capital and state-owned enterprises, implement policies and measures to ensure that private enterprises participate in market competition on a fair basis, foster a world-class business environment, stimulate the vitality of various business entities, and boost Shanghai's appeal to high-end resources at home and abroad.
In his visit to central Jiangxi Province in October 2023, the official readout says
Xi stressed that Jiangxi is an artery linking rivers to the ocean, and it not only connects the eastern and western parts of China but also serves both the northern and the southern parts. As a result, many projects related to major national strategies are in the province. It is imperative for the province to open up wider both domestically and internationally, boost development through opening up, and develop the inland province into a high ground for reform and opening up to serve and integrate itself into the new development paradigm. The province must also develop the port economy, develop cities as important junctures along the Yangtze River Economic Belt, and create regional logistic hubs and trade centers.
Xi stressed the need to build a big and strong metropolitan area, actively dovetailing with and serving the integrated development of the Yangtze River Delta region as well as the development of the Guangdong-Hong Kong-Macao Greater Bay Area to boost its appeal to such elements as funds, technologies and talent. Jiangxi should build a regional production and supply base for high-quality agricultural and sideline products by allowing full play to its strengths in ecological resources and traditional agriculture. The province was urged to consolidate its traditional trade channels, actively explore new ones and deeply integrate into the Belt and Road Initiative. It is imperative to deepen reform in key areas, improve business environment, and steadily expand the institutional opening up in terms of rules, mechanisms, management and standards. Market access to private investment should be expanded in an orderly manner, the implementation of polices that encourage fair competition should be promoted, and a cordial but clean relationship should be built between government and business so as to promote the healthy development of private economy.
Lastly, the Chinese Economists 50 Forum, an organization gathering many prominent Chinese economists including retired ministers, entitled its most recent internal meeting
未来一个时期进一步深化经济体制改革、扩大高水平开放、增强经济发展内生动力的建议
Suggestions for further deepening economic system reform, expanding high-level opening up, and enhancing the endogenous driving force of economic development in the future period.
Attendants of the meeting include the current Executive Deputy Director of the General Office of the Central Financial and Economic Affairs Commission, a current Vice Chairman at the China Securities Regulatory Commission, a retired central bank governor, a retired finance minister, and a retired head of the national bureau of statistics.
It’s still too early to tell what form the new wave of “reform” promised by the Chinese President on Feb. 19 will take, what exactly will turn out in the package, and how it will be implemented.
Also of interest is at what occasion and what time will it be announced. The 3rd Plenary Sessions of the CPC Central Committees are known to be advancing reforms, starting with the 3rd plenary session of the 11th Central Committee in 1978 that ushered in China’s reform and opening up. The Decision Of The Central Committee Of The Communist Party Of China On Some Major Issues Concerning Comprehensively Deepening The Reform adopted at the 3rd Plenary Session of the 18th CPC Central Committee, on November 12, 2013, was also, at the time, well-received domestically and internationally for its perceived ambition, scale, and depth of reform.
Those precedents thus create expectations for reforms at other 3rd Plenary Sessions. As the agenda and date of the 3rd Plenary Sessions of the 20th CPC Central Committee are still unannounced, will Beijing use the occasion to restore confidence with new reforms?