China reaffirms commitment to state-led economy despite US pressure, after top Beijing policy meeting

Beijing reaffirms ‘public ownership’ is fundamental to China’s economic system in statements following fourth plenum this week

Top economic official promises to provide level playing field to all, including international firms, despite concerns over uneasy marriage of the two

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While Washington and Brussels complain about the unfair advantages enjoyed by Chinese state-owned enterprises (SOEs), Beijing insists that a powerful state sector is vital for China’s economy, but claims that it does not preclude economic fair play. Photo: Xinhua

Published: 6:59pm, 1 Nov 2019Updated: 11:23am, 4 Nov 2019

After China’s closed door policy meeting this week, Beijing’s top brass reaffirmed its commitment to the state-led economy, while simultaneously promising a level-playing field to international business.

The state economy will get “stronger, better and bigger”, a press conference in Beijing heard on Friday, while public ownership will remain the primary vehicle for economic growth.

China will also “unswervingly encourage, support and guide” the development of private businesses, and allow the market to play a “decisive” role in resource allocation, according to the official statement from the four day plenum session of the ruling Communist Party’s Central Committee, held this week.

The statement conveyed the key conclusions from closed door discussions between 370 of China’s ruling elite over the past four days. It also reconfirmed some of the fundamental differences between the economic models of the United States and the European Union and increasingly statist model pursued under Chinese President Xi Jinping.

While Washington and Brussels complain about the unfair advantages enjoyed by Chinese state-owned enterprises (SOEs), Beijing insists that a powerful state sector is vital for China’s economy, but claims that it does not preclude economic fair play.