China’s Xi Jinping lays out road map for becoming ‘financial superpower’ – but warns risk can throw efforts off-track
- At a top-level meeting, President Xi Jinping put forward a definition of a ‘financial superpower’ and laid out how China can become one
- Plan elaborates on goals first set out at financial work conference last year, emphasises institutional strength, government coordination
However, the world’s second-largest economy faces more urgent tasks in its efforts to defuse rising financial risk, he said during a high-level meeting at the Central Party School in Beijing.
“A financial superpower should be based on a strong economic foundation,” Xi was quoted by state outlet Xinhua as saying. “It must have world-leading economic, technological and comprehensive national strength.”
Major differences from the Western models, Xi said, include the Communist Party’s leadership and the emphasis on financing support for the real economy.
He also stressed fundamentals, saying a strong currency, central bank, financial institutions both domestic and international are key to superpower status, as well as strong supervision and talent.
Financial regulation must have teeth … corruption must be resolutely punished and moral hazard must be strictly prevented
While long-term work is required to become a financial superpower, Xi said, he also emphasised the importance of preventing systemic financial risk, adding financial regulators and industry authorities must clarify their responsibilities and strengthen cooperation.