Chinese President Xi Jinping's Pro-Business Moves Ahead of Third Plenum: "Reform is the Driving Force of Development"

"Remove Ideological and Institutional Flaws That Hinder Progress"
"Economic System Reform Should Prioritize Practical Needs"

Chinese President Xi Jinping emphasized reforms to address economic issues during a meeting with private business representatives and economists on the 23rd. This is seen as an unusual pro-business message ahead of the 3rd Plenary Session of the 20th Central Committee of the Chinese Communist Party (the 3rd Plenum), where China’s economic policy direction will be outlined.

According to Hong Kong’s South China Morning Post (SCMP), during his inspection tour in Shandong Province in eastern China, President Xi chaired a meeting with state-owned enterprises, private entrepreneurs, and overseas investors, stressing that "reform is the driving force of development" and that efforts must be made "to safeguard China’s basic economic system while building a high-level socialist market economy system."

[Image source= Xinhua News Agency]

He stated, "Ideological concepts and institutional defects that hinder the progress of Chinese-style modernization must be resolutely eliminated," and emphasized, "A goal-oriented approach should be pursued to solve problems, focusing on deeply rooted institutional obstacles and structural issues."

He continued, "We must promote high-quality development, support comprehensive innovation, and create systems that enable integrated development of urban and rural areas," adding, "We should further strengthen productivity and enhance social vitality." Furthermore, he noted, "Economic system reforms should start from practical needs and focus on the most urgent issues."

The meeting was attended by Ding Shizhong, chairman of Anta Sports; Victor Feng, chairman of Feng Group; David Xu Dakuan, president of Bosch China; Zhou Qiren, an economist at Peking University; and Zhang Bin, deputy director of the Chinese Academy of Social Sciences. They reportedly proposed venture capital (VC) development, upgrading traditional industries, improving governance of private enterprises, enhancing the business environment for foreign companies, and reforming the national power system.

SCMP evaluated President Xi’s remarks as "the most pro-business message delivered by China’s top leadership so far, ahead of the July 3rd Plenum expected to set new reform agendas and future growth directions." Zhang Nannan, associate professor of political science and public administration at the University of Hong Kong, said, "It signals the central government’s top priority on the economy," adding, "They have heard opinions and proposals from various sectors, especially entrepreneurs, but we will have to wait and see what happens next."

SCMP also reported voices expressing skepticism about expecting significant pro-business moves. A mainland China expert who wished to remain anonymous told the outlet, "President Xi did not frequently communicate with business leaders in the past, but it is clear that communication has recently increased," yet explained, "He still emphasizes the Party’s leadership, Marxism, and socialism in his speeches, so meaningful changes are not expected."