China's Xi pledges to tackle institutional obstacles in the economy

CHINA will deepen reforms to tackle institutional obstacles to economic modernisation, President Xi Jinping was quoted by state media as saying on Thursday (May 23), ahead of a closely watched meeting on reforms.

The ruling Communist Party’s central committee will gather in July for a key meeting known as a plenum, the third since the body of elite decision makers was elected in 2022, focusing on reforms amid “challenges” at home and abroad.

“We will strive to resolve deep-seated institutional obstacles and structural contradictions, so as to constantly inject strong impetus into Chinese-style modernisation and provide strong institutional guarantees,” Xi was quoted as saying at a seminar attended by company executives and economists.

Chinese leaders have pledged to push reforms and policy advisers have proposed overhauling the tax system to tackle the root cause of surging municipal debt, relaxing urban residency permits to boost consumption and creating a level playing field for the struggling private sector, among other reforms.

Xi called for coordination on reform measures to ensure various changes work cohesively, preventing internal conflicts.

Government officials should be proactive on reforms but should also act within their limitations, Xi added. REUTERS