Reforms top of China’s agenda

Chinese talk at home is all about its own reform, treating the US as playing the role of an enemy to development.

Chinese President Xi Jinping Picture: AP

Amid the high-level talks between China and the US over trade the Chinese talk at home is all about its own reform, treating the US as playing the role of an enemy to development.

This week sees the opening of the Canton trade fair in Guangzhou and the China International Import Expo in Shanghai, both of which are set to play key roles in opening the Chinese economy to the world.

The trade fairs are seen in China as part of its work in opening the doors to the world in what its officials call a win-win for the country and the rest of the world.

In a paper at the Hangpu International forum ahead of the trade fair, Bijian Zheng, the director of the Academic Committee of the Central Party, made the issue clear.

“What the US has started makes us more alert and awake from now until 2025,” he said.

Ahead of the G20 meeting in Argentina there is hope of some settlement between the US and China but while the talks go on at higher levels on the ground the Chinese are saying it just makes them more determined.

That is what the party line is, but profit warnings from the likes of Alibaba have highlighted the real impact the trade war is having in slowing the Chinese economy. State-owned enterprises may be trucking along but private sector companies are worried, according to Ford Foundation representative Elizabeth Knup.

The uncertainty is more over what it means for the big global institutions like the World Trade Organisation, which is threatened by the trade war.

China has played the role of supportive member but what may be needed more is a leadership position from China in reforming the WTO, which was not designed for a world in which a managed economy like China takes the global lead.

The theme of the Hangpu conference was all about President Xi Jinping leading China to what he has called quality growth. This means sustainable growth that is shared widely among the population.

The Chinese talk about “Socialism with Chinese characteristics” and stress the “market is our greatest asset”.

The term “high-quality” development means advanced manufacturing, more innovation, craftsmanship like Japan and Germany, better brand strength, and balance and co-ordination.

High-quality growth means “catering better to the needs of people, efficiency, sustainability and economic development”.

They are the rallying cries of the conference as the real battles take place between Beijing and Washington.

John Durie was a guest of the Australian China Relations Institute in Guangzhou