China Planning 'Major' Reforms Ahead of Key Political Meeting

Chinese President Xi Jinping arrives for a ceremony in Beijing marking the 70th anniversary of the Five Principles of Peaceful Coexistence /AFP
Chinese President Xi Jinping arrives for a ceremony in Beijing marking the 70th anniversary of the Five Principles of Peaceful Coexistence /AFP
TT

China Planning 'Major' Reforms Ahead of Key Political Meeting

Chinese President Xi Jinping arrives for a ceremony in Beijing marking the 70th anniversary of the Five Principles of Peaceful Coexistence /AFP
Chinese President Xi Jinping arrives for a ceremony in Beijing marking the 70th anniversary of the Five Principles of Peaceful Coexistence /AFP

Chinese President Xi Jinping said Friday the ruling Communist Party was planning and implementing "major" reforms, ahead of a closely watched political conclave that is expected to put economic recovery high on the agenda.

Chinese policymakers have struggled to reignite growth since the end of strict Covid-19 pandemic health curbs in late 2022.

The world's second-largest economy is beset by a debt crisis in the property sector, persistently low consumption and high youth unemployment, according to Reuters.

Xi said in a speech on Friday policymakers "are planning and implementing major measures to further deepen reform in a comprehensive manner".

"We will... form a more market-oriented, legal and international business environment," he said.

"China's door will only open wider and wider, and will never be closed."

Xi has touted the promise of significant reform several times this year and the government has already enacted measures in key sectors such as real estate to try to address critical issues.

It was announced on Thursday that the delayed Third Plenum -- a meeting historically watched for signals on economic policy direction -- will take place in Beijing in mid-July.

The key meeting of top officials, originally expected last autumn, is highly anticipated in the hopes it might resolve the uncertainty that has weighed on China's economy.

The People's Bank of China (PBOC), the country's central bank, pledged later on Friday to "promote the implementation of the financial policies and measures already issued, and push for the stable and healthy development of the real estate market".

"(We will)... promote the accelerated construction of a new model for real estate development," the PBOC said in a statement.

Xi's address at Beijing's opulent Great Hall of the People, delivered in front of a high-profile international audience, marked the 70th anniversary of some of China's foundational diplomatic tenets.

The Five Principles of Peaceful Coexistence include mutual respect for territorial integrity, mutual non-aggression, mutual non-interference in internal affairs, equality and cooperation for mutual benefit, and peaceful coexistence.

Xi hailed China as a force for global peace, saying in his speech Beijing would continue to play "constructive roles" in international conflicts such as Gaza and Ukraine.

China has been criticized by Ukraine's allies for failing to condemn Russia's 2022 invasion and accused of favouring Moscow. Beijing insists it is a neutral party.

In the Middle East, China has advocated for decades for a two-state solution to the Israel-Palestinian conflict.

Xi called for greater cooperation between China and developing countries in his speech.

"Engaging in small yard, high-wall decoupling practices is to move against the tide of history," Xi said.

"It will only harm the common interests of the international community."



Oil Prices on Track for Fourth Straight Week of Gains

FILE PHOTO: Oil pump jacks are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. REUTERS/Agustin Marcarian/File Photo
TT

Oil Prices on Track for Fourth Straight Week of Gains

FILE PHOTO: Oil pump jacks are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. REUTERS/Agustin Marcarian/File Photo
FILE PHOTO: Oil pump jacks are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. REUTERS/Agustin Marcarian/File Photo

Oil prices dipped on Friday but were on track for a fourth straight week of gains and were near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns.
Brent crude futures, which have risen 7% over the last four weeks, slipped 31 cents, or 0.4%, to $87.12 a barrel by 0415 GMT, Reuters said.
US West Texas Intermediate (WTI) crude futures, which have climbed 9% over the past four weeks, was at $83.70, down 18 cents, or 0.2%. With the US market shut for the Fourth of July holiday on Thursday, trading was thin and there was no settlement for WTI.
Oil rose this week on strong summer demand expectations in the United States, the world's largest oil consumer.
"Market sentiment has been supported this week by strong mobility indicators and intensifying geopolitical tension in the Middle East," analysts at ANZ Research said in a note on Friday.
The US Energy Information Administration (EIA) reported a massive 12.2 million barrel draw in inventories last week, compared with analysts' expectations for a draw of 700,000 barrels.
US data on Wednesday showed that first-time applications for unemployment benefits increased last week while jobless numbers also rose, which analysts said could potentially hasten interest rate cuts by the Federal Reserves and support oil markets.
On the supply side, Reuters reported on Thursday that Russia's oil producers Rosneft and Lukoil will sharply cut oil exports from the Black Sea port of Novorossiisk in July.
Traders were also tracking the war in Gaza and elections in France and the United Kingdom, analysts said.