Ever since China outlined its sweeping reform plans during the Third Plenum last year, the government has repeatedly said they’ll have market forces determine its economic policy. Some of the steps they’ve taken include eliminating the need to get approvals to cut red tape.
China has also opened more sectors to private investors– including railway, energy, telecoms and banking. The government has already announced a list of the country’s private banks that will be created.
In terms of financial reforms, authorities are also slowly rethinking their stance on interest rates. For example, the Central bank is now allowing lenders to raise the rates they offer for deposits. Significant land reform was also discussed during the Third Plenum, part of which include finishing all registration of land use rights within five years.
CCTV America was joined by Marshall Bouton, interim Executive Director of the Asia Society Policy Institute to talk about China’s economy and his group’s latest report which concluded that China’s reform plans are realistic.