China will make state economy ‘stronger, better and bigger’, top trade negotiator Liu He says
- The preferential treatment China gives its state-owned enterprises (SOEs) is one of the key disputes between Washington and Beijing
- Despite progress made on an interim deal, the comments suggest a long-term solution to US-China trade war will be harder to find
China signalled on Friday that it has no plans to give up its government-led economic model or weaken the role of its state-owned enterprises, a change the United States has stipulated as one of its key demands in the ongoing trade war negotiations.
“We will promote state-owned economy reforms and structural adjustments, and invest more in industries related to national security, serving the national strategic goals,” Vice-Premier Liu He – China’s top trade negotiator –said in an article published in the Communist Party mouthpiece, the People’s Daily.
We will promote state-owned economy reforms and structural adjustments, and invest more in industries related to national security, serving the national strategic goals
Rather, Liu said that Beijing planned to make the state economy “stronger, better and bigger”.
His comments echo a pledge made by the Communist Party’s Central Committee at the end of its fourth plenary session at the end of October.
SOEs have long been the central pillar of China’s economic model and since the start of the trade war have played a major role in shoring up a weakened economy and maintaining employment levels.
