China’s economic reforms hinge on creative and courageous changes, state media says in warning of a ‘wasted opportunity’

‘Inaction and slackness’ at local levels of government seen as threats to Beijing’s revitalisation vision ahead of third plenum Communist Party gathering

Commentary in Economic Daily follows a State Council meeting where Premier Li Qiang implored government officials to embrace reformative methods

Reading Time:2 minutes

Chinese Premier Li Qiang presided over a State Council meeting in Beijing on Sunday. Photo: Xinhua

Published: 9:00am, 20 Feb 2024

China must put the economic onus on better implementation and coordination in reforms to address deep-rooted issues and energise growth, according to fresh calls in state media.

Effective and targeted reforms are essential to stimulate the vitality of all market participants, the state-run Economic Daily said in a front-page commentary on Monday, signalling Beijing’s amped-up emphasis on reform to bolster the nation’s economy.

The calls came amid market expectations for new policies on further reform to be rolled out at the delayed third plenum. This party meeting typically takes place every five years and lays out China’s development strategy and priorities.

The meeting, which would have been held in autumn if the tradition of past decades were followed, is widely expected to address some of the country’s economic woes, including improving business confidence and transforming the ailing real estate market. When exactly it will be convened has not yet been announced.

The world’s second-largest economy has experienced a bumpy recovery since dropping its zero-Covid policy in December 2022. Despite a 5.2 per cent growth rate in 2023, the economy has yet to lift market sentiment amid a slew of challenges including job and income uncertainties, geopolitical tensions with the West, and deflation concerns.

Calling reform “the fundamental driving force of China’s modernisation”, the newspaper warned that it should “avoid wasting the opportunity for reform due to inaction and slackness”.