China’s efforts to reduce debt and stable economic growth should not be viewed as being in opposition as the government will ensure its deleveraging campaign will not have a negative impact on the economy, a Communist Party spokesman said on Tuesday.
“In the long term, proactive deleveraging helps to eliminate risks that could impact steady and healthy economic development,” said spokesman Tuo Zhen.
“Deleveraging has shown some initial results and has not shown any adverse impact on the economy.”
Tuo made the remarks at a news briefing a day ahead of the opening of the key, twice-a-decade Party Congress that will see President Xi Jinping map out his ambitions for the country and further tighten his grip on power.
The Congress will end on Oct. 24, Tuo said.
China’s economy expanded at a robust 6.9 percent in the first six months of the year, though there are some concerns that a sustained crackdown on credit growth could crimp growth.
Tuo also said China would continue to open up to the world as part of reform.
“We will persist with our fundamental state policy of opening up, continue to expand openings to the outside, hasten in building an open economic system, further expand market access, and promote a new round of high-quality opening.”
But despite repeated pledges to further open the domestic market to foreign companies, hoped-for market liberalisation is increasingly being viewed as secondary to Xi’s state-centered approach to economic policy and his focus on stability.
Source: Reuters (Reporting by Ryan Woo and Judy Hua; Additional reporting by Michael Martina; Writing by Elias Glenn; Editing by Jacqueline Wong)