Xi signals state sector to remain dominant

Hopes that President Xi would use his speech today on the 40th anniversary of the start of China’s “Reform and Opening Up” to announce a renewed push for market-based reforms were disappointed. Rather than signalling renewed economic liberalisation, the key message of the address was that the state will continue to play a large role in the economy. It wasn’t surprising that Xi focused much of his attention on the Party’s role in China’s successes. But it was somewhat disappointing how little mention there was of markets and the private sector in Xi’s description of the path ahead.