Editorial | Xi offers message of reform to business leaders at pivotal time

The third plenum of the Central Committee in July traditionally sets China’s economic strategy for years to come. The timing of President Xi Jinping’s meeting last week with business leaders is therefore significant, being held ahead of the key party gathering.

The first of its kind in nearly four years, it came at what is shaping up as a pivotal time in economic development and reform, with the country striving to accelerate growth in the face of domestic and external challenges.

Xi called for deepened reform during the meeting in Jinan, Shandong province, with the bosses of state-owned firms, private entrepreneurs and investors. He struck a pro-business and pro-growth tone to reassure his audience.

Observers pointed out that after Xi met entrepreneurs in 2018 amid US trade-war tensions, and in 2020 after the initial Covid-19 shock to the economy, Beijing unveiled pro-business and pro-growth policies.

Describing reform as the driving force for development, Xi told business leaders China’s basic economic system must be upheld, but “we must build a system that can push forward high-quality development, support comprehensive innovation and an integrated urban and rural development … we must start from practical needs and focus on the most urgent matters”.

The country not only needs reform and innovation, but also the development of a comprehensive supply chain. In that regard, the choice of entrepreneurs invited to speak was telling.