Trade Spat Perils Put Spotlight On Need For Effective Strategies

- Sep 17, 2018-

Short-term challenges from the escalating trade spat with the United States have reassured Chinese officials and experts of the need to support market-oriented reform and opening-up, with a particular focus on reducing debt and limiting government intervention.

That was the consensus reached by participants at a high-level forum on Sunday, during which policymakers and advisers from home and abroad gathered in Beijing.

They discussed global trade tensions and policy options that would ensure smooth growth of the Chinese economy.

Reforms should strengthen the market's decisive role in resource allocation, optimize State-owned enterprises and reduce or eliminate direct subsidies for some industries, said Yang Wei­min, former deputy director of the Office of the Central Leading Group on Financial and Economic Affairs, a top-level economic policymaking body.

Major initiatives are needed to offset the risk of long-term economic slowdown amid the uncertainties of the trade frictions with the US.

The frictions have injected negative sentiment into the market, evidenced by recent stock market weakness and record-low growth in fixed asset investment, experts said.

Despite the external headwinds, which have limited influence, a better choice for the world's second-largest economy is to focus on domestic issues.

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