China central-bank adviser proposes structural reforms to revive economy

China has limited room for further monetary policy easing, and it should pursue structural reforms such as encouraging entrepreneurs rather than counting on macroeconomic policies to revive growth, a central bank adviser said on Sunday.

Liu Shijin, a member of the People's Bank of China's (PBOC) monetary policy committee, told a financial forum in Shanghai that Beijing's room for monetary policy easing was limited by widening interest rate differentials with the U.S.

Fiscally, Chinese governments at various levels are under stress, he told the annual Bund Summit conference.
 

"If China continues to focus on macro policies in its efforts to stabilise growth, there would be more and more side effects," said Liu, vice president of the Development Research Center of the State Council.

"More importantly, we will again miss the opportunity for structural reforms."

China's post-COVID recovery has lost momentum amid weak consumption, falling exports and a deepening property debt crisis, and the economy is struggling despite a slew of monetary and fiscal measures to boost confidence.

Liu proposed on Sunday a new round of structural reforms that could aid the economy immediately, while also injecting long-term growth momentum.

They include demand-side reforms with a focus on giving migrant workers access to public services enjoyed by city dwellers, as well as supply-side reforms that involve igniting entrepreneurship in emerging industries, he said.

China's top economic planning body announced this month it would create a new department to help private businesses, as Beijing seeks to revive investor confidence hurt by government crackdowns on sectors ranging from the internet to private tutoring.

Liu said on Sunday that China should give clearer recognition to private businesses' status, both ideologically and politically.

(Reporting by Shanghai newsroom; Editing by Jamie Freed)

Socialise with caution, PLA warns cadres

The People’s Liberation Army(PLA) urged Chinese military personnel to be careful about who they associate with, saying socializing with the wrong people is a key reason “some leaders” have been removed from their positions. Chinese military cadres should “purify their social circle,” a commentary published by the state-run PLA Daily said on Friday, without elaborating on the leaders who were removed from their posts.

“The most effective way to stay away from dangers and temptations is to conduct ‘physical isolation’,” the PLA Daily said, referring to the code of conduct for cadres’ social interactions issued by the Central Military Commission in June. If events or meal appointments aren’t necessary, they should be avoided, the commentary by a department of the commission said.
 

The move comes following the removal of Qin Gang as foreign minister.
 

Bloomberg