President Xi Jinping has put to rest many concerns globally which were fuelled by the growing trade dispute with the US as he unveiled a few of the biggest reforms ever since he took command after extending his rule. The measures which ranged from the liberalisation of the strict industries by removing restrictions, to bring down tariffs especially in automobiles significantly which will boost the imports and to foster the safeguarding of the intellectual property. Xi also declared the plans to establish of a free trade port with much easier regulatory provisions as compared to the Shanghai free trade zone. The new reform measures are seen as a reply to the US concerns behind the current trade dispute with China. Additionally, the whole idea was intended to raise the stature of China on the world stage by outlining the larger vision of the leader.
The recent roll-out has also been instrumental in staging Xi as the next carrier of economic liberalisation which had begun 40 years ago under the leadership of Deng Xiaoping. There is although a sea of difference between the socio-economic and political conditions as Deng had steered the country away from poverty, isolation and a deep political mess. The economy was totally inward-oriented. Contrastingly, Xi has the different set of problems as the challenges are posed by international players and economies. There is a growing risk of social crisis and instability triggered by a gravely slow growth of the economy in addition to mounting international pressure especially the United States. The government has stepped up its support for domestic businesses.
The brand new version of reforms thrown by Xi is nothing more than old ones with new packing. The much talked about reform about opening of banking and securities to enhance the foreign participation of auto sector has been in the pipeline since last November last year but it has come to the limelight as it is now a part of the five-year plan which will strengthen the hold of Xi on government which is essential for economic restructuring. The reforms have however enumerated the fact that there is no stopping the dragon now as China is prepared for globalisation and integration with the world economies.
The smallest and the only island province of China is now under international limelight as it is hosting the Boao Annual Economic Summit in a small town of Boao. Boao Forum is an Asian answer to Western treaties and institutions like European Union, NAFTA etc. It seeks to integrate regional interests in the age of global trade and commerce. Boao Forum for Asia is thus a non-profit organisation which conducts high-level meetings and forums of leaders coming from different walks of life like politics, academia, business community etc. primarily from Asia but also from other places to focus on the most important issues facing the world. It has a permanent address at Boao in Hainan province in China. The Secretariat of the Forum is based at Beijing. The forum was started in 1998 by former President of Philippines, Fidel V. Ramos, former Australian PM, Bob Hawke and Morihiro Hosokawa the former PM of Japan. The formal inauguration happened in 2001. Over the years, it has emerged as a major destination for China to expand its diplomatic workmanship to broaden its influence in addition to a presentation of the economic vision.
The new reforms announced by Xi may or may not ease its stand-off with the US as the measures fall significantly short of the addressing the core concerns voiced by Washington.