China introduces new reforms, to allow market play decisive role
Chinese government has introduced a slew of reforms focused at markets in order to check its sliding growth.
Objective: The reforms are aimed at giving the market a decisive role in the allocation of resources. However, the government has retained its dominance in the public sector.
Why these reforms by Chinese Government?
The reforms are targeted to improve and develop socialism with Chinese characteristics and to further modernization of the country’s governing system and capabilities. The Chinese government intends to broaden the role of ownership and improve property rights protection in the country. China is yet to open land rights to private owners completely. Currently, all land is owned by the government but sold to buyers with long-term lease. The government will also promote development in non-public sector which will in turn stimulate vitality and creativity in the economy, while maintaining the dominance of the public sector.