Economic Reform and Economic Policy of the Xi Jinping Leadership

The economic reform and economic policy of the Xi Jinping Leadership can be divided into three issues. The first issue is the Comprehensively Deepening Reform, which aims to limit the role of government while giving a decisive role to the market economy and thereby achieve its definitive goals by 2020. The second issue is the Promotion of New Type of Urbanization, which aims to give an urban family registry to famers who have moved from rural areas to urban areas and to grant urban public services, including residential security, social security, and compulsory education for children, while driving the growth of China by urbanization. The third issue is the Innovation of Macro-Control, which aims to specify a reasonable range for economic management, set the inflation rate goal as the upper limit and the growth rate and employment goals as the lower limit; if the economy is within the range, short-term economic stimulus measures will not be taken, but economic system reform and economic structural adjustment are given priority. It is necessary to implement these three measures in parallel in order for the Chinese economy to escape the so-called Middle-Income Trap, to complete the transition to a market economy system, and to achieve sustainable and sound growth. However, it is essential to have the strong political leadership of President Xi Jinping to control vested interest groups who do not want reform, and to implement the drastic economic system reform and economic structural adjustment.