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China said that it would increase coordination of monetary policy, macroprudential monitoring and financial supervision, the strongest signal yet that top leaders gathering in Beijing this week plan to unveil an overhaul of economic authorities.
The financial supervision system will be improved to ensure financial stability and prevent systemic risk, the official Xinhua News Agency reported late Sunday, citing a decision by a Communist Party committee on deepening government reform. The statement comes just before the National People’s Congress opens Monday morning, when Premier Li Keqiang will outline the country’s economic objectives for the year.
President Xi Jinping has made financial stability a top job for his deputies, who are working to maintain rapid economic growth while defusing a growing debt bomb. Leaders are considering a merger of the banking and insurance regulators, people familiar with the matter told Bloomberg News last month.
The plans are part of a broader overhaul of the Communist Party and government ruling structure, according to Xinhua. China aims to build an “efficient system that carries the full function of the party and state institutions” and gives the party a bigger role by accelerating creation of “new economic organizations and social organizations” under it.
Authorities also said Sunday they will step up efforts to ease direct government intervention in markets, enhance antitrust efforts to prevent unfair competition and monopolies, and loosen entry limits in service sectors. Cloud computing and big data will be used to make economic controls more targeted, the statement said, without giving more detail.