Xi Jinping urges implementation of reforms in China

In remarks lasting nearly an hour-and-a-half, Xi called for support for the state economy and development of the private sector and said China would expand efforts at opening up and ensure the implementation of major reforms.

“We must, unswervingly, reinforce the development of the state economy while, unswervingly, encouraging, supporting and guiding the development of the non-state economy,” he said at Beijing’s Great Hall of the People.

Xi pledged to continue liberalizing the economy and boosting private companies, while also strengthening state-owned enterprises. There will be "no turning back" to the policies of the past, he said.

Xi was speaking on the day China has marked as the 40th anniversary of the start of late leader Deng Xiaoping’s campaign of “reform and opening up,” which led to explosive industrial growth that made China’s economy the world’s second-largest.

Xi reaffirmed the ruling Communist Party’s leadership in all aspects of society and said reforms should be in line with the overall goal of improving the socialist system with Chinese characteristics.

“Opening brings progress while closure leads to backwardness,” Xi said.

“Every step of reform and opening up is not easy. In future, we will be inevitably faced with all sorts of risks and challenges and even unimaginable tempestuous storms,” said Xi, stressing the role of the Communist Party.

Xi was speaking amid mounting pressure to accelerate reforms and improve market access for foreign companies as a trade war with the United States weighs on the economy.

But Chinese stock markets fell slightly over the course of Xi's address as it became apparent he wasn't going to reveal how he planned to deal with the country's slowing economy.

The trade war has spurred some Chinese entrepreneurs, government advisers, and think-tanks to call for faster reforms and the freeing up of a private sector stifled by state controls and struggling to gain access to credit.

Xi and U.S. President Donald Trump agreed early this month to a 90-day truce in the trade dispute, which halted the threatened escalation of punitive tariffs while the two sides negotiate.

In his speech, Xi enumerated the accomplishments of China’s development since it moved away from a planned economy when basic goods were rationed and often scarce.

“Grain coupons, cloth coupons, meat coupons, fish coupons, oil coupons, tofu coupons, food ticket books, product coupons and other documents people once could not be without have now been consigned to the museum of history,” he said.

“The torments of hunger, lack of food and clothing, and the hardships which have plagued our people for thousands of years have generally gone and won’t come back.”

Numerous luminaries in attendance were cited for their contributions to economic reforms including the heads of online giants Alibaba, Tencent Holdings and Baidu and carmaker Geely Automobile Holdings, a nod to the role of the private sector.

Xi’s emphasis on the need for “top-level design” suggested he is not willing to significantly reduce the state’s role in the economy,