Xi Jinping of China The country’s new leader, Xi Jinping, has ignited expectations of bold economic liberalization, but he has also cast himself as a resolute defender of Communist Party control, leaving even insiders uncertain about how far he will push changes that could strain the webs of state patronage and unsettle the stability that he and many other officials also prize. The changes proposed by some Chinese officials include rolling back certain state controls on prices of energy and natural resources, encouraging private business in industries long dominated by state conglomerates and bringing more market competition into the financial sector. But such ambitions could falter in the face of opposition from other officials and state-owned companies, as well as the concerns of party leaders about social instability and slowing growth. The turmoil of bank-to-bank loans is but one example of the kind of economic jitters and pitfalls that Mr. Xi and his colleagues could confront as they grapple with these policy choices, analysts said. “So much risk has already been accumulated, but they need to avoid panic while pushing forward real reforms,” said Tao Ran, an economics professor and director of the China Center for Public Economics and Governance at Renmin University in Beijing. “It’s politically very difficult.”
Posted on: Sat, 22 Jun 2013 08:51:28 +0000
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