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KIEP Opinions
China's Economic Reform and Risks
- Author IkJoon Moon
- Date2014-05-16
At National Peoples Congress held in March 2013, President Xi Jinping promised in his emotional speech that he will make the “Chinese Dream” come true. Based on this, the Third Plenary Session of the 18th Central Committee of the Communist Party of China proposed the blue print for reform through “the Decision on major issues concerning comprehensively deepening reforms.” Specific policies for economic reform for the next 10 years began to be announced since the 2014 National Peoples Congress.The problem is that such intensification of economic policy could run into conflict with the risks inherent in the existing Chinese economy. We will continue hearing about economic crisis because of shadow financing, the possible of hard landing as a result of slowed economy, corporate defaults, and resistance from and conflicts with the established class. However, It appears that there will not be any serious hard landing of the Chinese economy any time soon.
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