'Press on' with economic shift

Political Bureau meeting, led by Xi, says implement restructuring, stabilize real estate sector  

China's top leaders urged on Tuesday that the nation "unswervingly press on with the strategic adjustment of its economic structure" while ensuring "systematic financial risks do not occur".

The country also should accelerate its establishment of a long-term mechanism to promote the stable development of the real estate sector, Xinhua News Agency reported, citing a statement after a meeting of the Political Bureau of the Communist Party of China Central Committee, presided over by President Xi Jinping, also general secretary of the CPC Central Committee.

China achieved GDP growth of 6.9 percent in the first quarter compared year on year, with growth up 0.1 percentage point more than the fourth quarter of 2016. But the Political Bureau meeting said the improvement in economic fundamentals could be cyclical.

China still faces many challenges in maintaining stable growth, and "economic restructuring remains a long-term, arduous task", it said.

The country should actively push for supply-side structural reform and ensure systematic financial risks are avoided, those at the meeting said, urging policymakers in all central and local departments to "improve their ability in carrying out the central government's policies".

The meeting also said that China will continue to adopt a proactive fiscal policy and prudent monetary policy, and accelerate establishment of measures to rein in the real estate market.

"China is encountering a new situation, as its economic structural reform coincides with the changing external environment," said Dong Yuping, an economist of the Chinese Academy of Social Sciences.

Dong was referring to US interest rate increases that have driven international capital to flow out of the emerging and developing economies, complicating economic policymaking of those countries.

"China has seen a rising number of debt defaults by some large private enterprises, which poses a threat to financial stability, and the country must keep alert to prevent the financial system from being affected."

China's financial regulators have recently tightened risk control, with the China Banking Regulatory Commission vowing to "become more active in financial risk control" and the China Insurance Regulatory Commission ramping up supervision of insurers.

The banking commission also said that it will prevent banking funds from illegally entering the real estate sector.

"The current property price-control measures adopted by local governments are only makeshift moves and China lacks a long-term mechanism for effectively maintaining stable growth of the real estate market," Dong said.

The statement also said the CPC Central Committee, with Xi as the core, has set inspection as an important measure to comprehensively strengthen Party self-governance since the 18th National Congress of the CPC in 2012.

The inspection toward central legislative and judicial authorities has provided political guidance in the legislative and judicial systems to uphold the Party's leadership, enhancing the Party construction, and strengthening Party self-governance, it said.

It stressed that the legislative and judicial work is an important part of the overall work of the Party and the State, and the legislative and judicial force is an important power to advance the law-based governance of China.

Legislative and judicial authorities were urged to safeguard the authority and unified leadership of the CPC Central Committee, hold a firm political stance and remain loyal to the Party, the country, the people and the law.

The meeting highlighted the importance of political work in the process of building up the legislative and judicial forces.

The clean governance and anti-corruption move will be strengthened to avoid corruption risks, improve trust of justice, and safeguard fairness, the statement said.