Third Plenum: China vows more market reform but implementation will be key – Danske Bank
|At the Third Plenum, China vowed to improve the market mechanism and create a fairer market environment for private businesses. Further opening-up was also highlighted, Danske Bank’s Chief Analyst Allan von Mehren notes.
China wants to create a fairer market environment
“This is an important signal at a time when popular perception is that China is moving toward a purely state driven economy. But at the end of the day what matters is the implementation and China has disappointed on this before.”
“Technology and innovation as well as fiscal and welfare reforms are also key priorities. The communiqué released gives a broad outline of priorities and we will get more detailed policy documents over the weekend.”
“Reforms or not, it will not do much to lift China out of the challenges short term as these are more related to the housing crisis. It does affect China's long term growth potential, though.”
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