CHINA-ECONOMY: LIBERALISATION POLICY AND WEF, DAVOS

Liu He, Politburo member and Director of the General Office of the Central Leading Group for Financial and Economic Affairs, told Global Times on January -- that China is prepared to "further open up in four aspects," including the financial, manufacturing and services sectors as well as strengthen intellectual property protection and expand imports. Liu He is leading the Chinese delegation at the WEF meeting. He also mentioned a potential tariff cut in auto imports in the next few years. Separately,  Dong Dengxin, Director of the Finance and Securities Institute at Wuhan University of Science and Technology, told Global Times that "Compared with the level of opening-up in the manufacturing and services sectors, the financial sector, specifically the domestic securities market, lags significantly behind due to central regulators' concern over potential financial risks." He added that the financial risks refer to the inflow of speculative foreign investors, which may deal a blow to the domestic capital market, prompting the sharp fluctuation of the yuan and eventually leading to an economic crisis. Similarly, the rapid capital flight also put a strain on foreign reserves. Dong Dengxin also said that opening up the financial sector can be considered a test of Chinese policy-makers' supervision and policy-making ability.





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