Chinese President Xi Jinping discussed over the weekend how the country's financial sector can help invigorate the economy through maintaining a balance between managing and avoiding risks.
Xi said during a study session with the CPC (Communist Party of China) Central Committee Political Bureau on Friday afternoon that China should set its eyes on opening up to international and local businesses within the financial sector.
According to Xinhua, the Chinese president said it is important for the finance sect to both avoid potential risks and deal with threats that the sector will encounter. Xi said the balance should be achieved effectively since finance is a country's core growth driver.
Xi went on to explain that a financially secure country can contribute greatly to national security, thus paving the way for a well-rounded social and economic system.
In his address, Xi also pointed out that finance and the economy are dependent on each other and should thrive as two-in-one entities to help meet the Chinese people's socioeconomic development needs.
To achieve growth in the Chinese economy, Xi recommended that the financial sector adopt multi-level banking systems that should cover various aspects including personalized and diversified financial products to suit different market demands.
For Xi, improving business assistance in industries such as agriculture will help strengthen the financial sector's contributions to the economy. He added that a transparent and dynamic capital market should be established to ensure that the finance sector will have proper management.
Xi encouraged financial institutions and entities to adopt the country's goals of leaning on innovation, technological creations, and creative projects that will help improve the quality of financial services in China. "The healthy development of the real economy is the foundation to prevent and defuse risks," he said.
The Chinese government will prioritize private companies that are experiencing temporary troubles as well as other firms that have goals in line with Beijing's industrial development efforts, Xi said.
Meanwhile, U.S. President Donald Trump has delayed the expected increase in American tariffs on Chinese goods. Additional tariffs are supposed to take effect on March 1 but Trump said progress in trade talks between Chinese and U.S. delegations resulted in his decision.
According to Reuters, the U.S. president said, "I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!"
Experts predict that good progress in the China-U.S. trade talks will have a much better effect on two of the world's largest economies. It is expected that a trade deal will help spur President Xi's goals of a well-rounded Chinese financial sect.
