Skip to main content

tv   Bloomberg Markets Asia  Bloomberg  December 17, 2018 9:00pm-11:00pm EST

9:00 pm
by the chinese president, looking for any hint on reform. but more in the efforts of the country in the last 40 years. lifting 700 million people out of poverty and making it the second biggest economy, but the markets have not been looking like that at the moment. yvonne: 2% declines across the board. you have to wonder if this comes down to the fact. two days before this decision. we mentioned how rare it is to see a selloff like this because most of the time, this is in the markets. it seems either way the fed goes, the markets might not be actually gaining any solace because what led to the climbs earlier this year was a hawkish fed. are we going to see some upside? global growth concerns weighing on stocks. the fed potentially cannot win. take a look at singapore. down to 1.3%.
9:01 pm
japan, down about 1%. you have the likes of the hang seng down, after we saw a little more capitulation in the crude price overnight. brent crude extending the losses, down 1% for wti crude as well. below $50 a barrel, the lowest since october of 2017. affectsook at asia relatively stronger. the dollar a little more this morning but a lot when with what the fed is going to do. up a quarter of 1% at the moment. let's show you what we are looking at for 2018 because we talk about how valuations, cheap enough for not. talk about the fed turning less hawkish. that has not been enough to turn around these markets. some of them saying we will not see the santa claus rally. if we see any kind of gain.
9:02 pm
take a look at the year of the havens. the haven assets index we have created that tracks the dollar. yen, swiss franc, some government bonds and developed markets. we have seen a gain of some 3%. not a lot, but compare that to global equities over all, that is falling about 10% for 2018 alone. perhaps getting a little more defensive is the way to go for 2018. we will see how 2019 performs. we talked about how this market selloff is being blamed by the fed. you could also argue it is maybe the capitulation in the oil price fueling these losses. take a look at this next terminal chart. we can show you the oil move we have seen is starting to fall in tandem with global financial conditions, which we have not really seen since the likes of 2015 to 2016.
9:03 pm
advisorsal badly showing us that -- medley advisors showing us this has bigger implications for inflation expectations than what the fed is going to do. we will wait on that. we have president xi about to speak. rishaad: i think we can get to beijing and take a look at what is going to happen with the people. as the chinese president gets ready to address his party delegates, gathering on the 40th anniversary of china's reform. ,he chinese leadership led then unleashing those changes that would open up and transform a beleaguered economy. the chinese financial market reform continues even to this day. that is the scene as we await for xijing ping. let's get outside the venue. very cold. sideackenzie is out beijing itself. tom?
9:04 pm
tom: it is slowly warming up. i'm outside the permit in city. -- for bidden city benin city -- forbidden city. the question from business leaders we have been hearing from his will president xi use this opportunity around the 40th anniversary of reform to announce further measures to lower trade barriers, to lower access, and increase the ability for bond companies to operate in sectors here? but also drive enterprises in the domestic markets. will he talk about trade and the tensions that china is facing with washington? reallindustrial policy? there is also concerned about the indebtedness of some of the nations participating in the project.
9:05 pm
is that something he will try to adjust as well? president xi is likely to talk about some of the achievements. he took power in the end of 2012, 2013, opening up the sectors whether it is the auto sector or financial sector. he will likely get a nod to his legacy since reform started in 1978, four decades of reform that has seen this incredible growth in china. the question is to what degree president xi is going to push forward with that. this is about a president putting his own mark on the agenda. must focus on what will becoming out of this speech from president xi. yvonne: you can see the premier kicking things off, wrapping up the national anthem. before we leave to xi's speech, tom, you mentioned the trade tensions and how this will impact china's open. has the administration given
9:06 pm
enough pressure to drive president xi to deliver on reforms? this is an opportunity to use this is a political went? -- wind? tom: this is absolutely what a number of key individuals have told us, that this event could be used by president xi and the chinese leadership to open up and make reforms on major parts of the economy which would go a long way of addressing china's trade partners, washington and elsewhere -- european union and japan. they could use this to say they are not bowing to u.s. pressure but doing it in line with reform. the american chamber of commerce president told us that is what he hopes to see. a broad announcement of lowering barriers. the consensus view is we will not get anything that radical in this speech. bloomberg intelligence thinking you might get additional announcements over the financial services. is concerning both
9:07 pm
performers and conservatives. both the sides are playing off. there is a debate that is ongoing. the concern is they will be saying this is not a time for radical changes. we continue to take a gradual approach as those pressures continue. would say now is the ideal time to enact reform and the pushback against those criticisms from washington and beyond. yvonne: tom, thank you. tom mackenzie, our china correspondent, joining us from outside beijing. we will see if we get more headlines coming through and when president xi starts speaking. let's get you caught up with the first word news with paul allen. paul: thanks. theresa may has given herself room to save the brexit deal, saying parliament will vote on
9:08 pm
january 14. she faced a hostile house of commons as she tried to explain how eu leaders were asking for help. labour says that is not good enough and calling a vote of no-confidence. >> the prime minister has cynically run down the clock, trying to maneuver parliament into a choice of two unacceptable outcomes. her deal or no deal. the country, workers and businesses are increaseingly anxious. paul: they are on point of agreeing to a post-brexit immigration policy which would favor high earners and nations close to the u.k. they will likely include australia, japan, and new zealand and the u.s. the home office proposals were expected to be published next september but have seen frequent delays.
9:09 pm
china's holdings of treasury fell to the lowest in 18 months as foreign currency reserves fell. notes, bills and bonds dropped for a fifth straight month in october to $1.14 trillion. 5 trillion in1 september. china remains america's biggest creditor followed by japan. tuesday is shaping up to be a day when the stars aligned for space exploration, assuming the weather holds. four separate companies will head into orbit. they include spacex and origin. time sobe the first many rockets have flown on the same day. global news 24 hours a day on air and on tictoc on twitter. i'm paul allen. this is bloomberg.
9:10 pm
rishaad: going to be returning to beijing for the president xi speech, marking 40 years of warrm and the current trade and china's current slowdown. that and more on the way. this is bloomberg. ♪
9:11 pm
9:12 pm
♪ yvonne: taking you back to the live pictures out of beijing this morning. waiting for president xi jinping to take the podium but we are hearing a member of the communist party top leadership party that they are standing tall. reform 40 years of the and open a program which has transformed the nation to the second largest economy in the world, but also has rivals around the world. president xi is supporting
9:13 pm
continuous reform of financial markets, global status differs. this is where the tension between the u.s. and china lies at the moment. of asia the head research, welcome to the program. what is this speech going to say? reform, reform which is nebulous itself and china in multilateralism? guest: i suspect we will get some pretty big -- they have to acknowledge the progress they have made over the last four decades which is tremendous. we have never seen hundreds of millions of people lifted out of poverty in a short amount of time in the way the communist party has done. that should be recognized, definitely. clearly, we are in a difficult time with the path they have been on his starting to hit a lot more barriers. i think the world is looking to this speech as an important moment where we may get new signals of what the authorities may be doing, but it is not clear to me we will.
9:14 pm
i think this is coming too early in this process of assessing how the address the u.s. concerns. i think we are probably going to get continued, very high level platitudes about a commitment to multilateralism, a commitment to openness, a commitment to more liberal reforms in the economy, but i don't know we will get much more concrete than that. therefore, i don't think we will really see this as any type of breakthrough in the u.s. trade issue either because ultimately, the u.s. side is saying they want to see more concrete measures coming out of china. very explicit action. think a lot of people are still questioning whether he is a reformer. the centralization of power we have seen, do you think that actually helps or harms china's prospects and promises of long-awaited economic reform or
9:15 pm
are those days over? charlene: i am in the middle here. i do see why he prioritized the politics so much, because we were in a state when he first took over, when there was a lot of divisiveness. i think there was a lot of question about whether or not it could really go into the party which would ultimately impact the direction of the economy. i think we are now at a point where they seem to be pushing this, emphasizing this state much more than anyone in the market would have thought at this point. i think the best manifestation of that is the total collapse in shadow credit this year which private enterprises live off of. it is really giving people this sense of, you keep talking about supporting private companies and us being so important, but we are still not getting resources. rishaad: in spite of of what we
9:16 pm
have had. it does come against the economic storm cloud gathering. charlene: absolutely. one the things we have been saying, we are looking at a much bigger slowdown than people are realizing for next year. the key reason being is we have our own measure of credit. stuffke the tsf and add in that they are leaving out and that has absolutely collapsed this year. we have not -- even though we have been technically in easing mode since july, we have not seen this transmitting. rishaad: it is not being reflected in the earnings yet though. charlene: it is not. it usually takes about four quarters for this stuff to be passing through and our credit measure did not start to fall off until q4, particularly december of last year. it is really around now where it should start biting and that is why we are getting all the stories of weaker demand and a dimmer outlook for next year.
9:17 pm
i think that will only intensify because we are in a situation where china is in easing mode, they have been in easing mode for five months and not transmitting. the market usually assumes the chinese government says they want to do something, everyone falls in line. here we are five months later and it is not happening. there is a lot of reasons for that. an is we are two years into effort where the authorities have told banks do not grow the off balance sheet aggressively, local officials are on the hook for the rest of your life for all the debt you have borrowed. we want to see the leverage steady and everybody change their behavior and they are not. the other key reason it is not transmitting, they are trying to keep a lid on property. the most important sector in the economy cannot participate in this. those two things is leading to this situation where here we are
9:18 pm
at the end of the year and we are not seeing any pickup in credit based on our measure. that is not boding well for next year. that, on top of all the issues they have coming from abroad, is obviously a very negative for next year. yvonne: we can see how you mentioned credit lending. it is not going to bode well for a lot of these private companies and how they will service their debt for 2019. are you seeinged the private sector at the moment? we mentioned the 150 billion yuan increase. is that enough to jumpstart growth? charlene: it certainly helps. it is better than zero but it is not enough. this is an economy that for two straight years was getting about 30 trillion in credit annually. we are seeing that reset closer to 20. of 150arginal programs
9:19 pm
billion yuan is certainly better than nothing, but it is not enough to offset. rishaad: just wondering about your measure of credit here and why it is setting up these long bells and other measures of credit not so much. what is different in the way you are measuring this? charlene: what we do is take the pboc's total social financing number and we added things they are leaving out. it mainly reflects other x -- credit extended by nonbanks. this is by trust companies, amc's, guaranteed leasing, all these types of entities. we also adjust for the nice will -- the meanest of all debt by local governments -- municipal debt by local governments. all of that led to a huge rebound in 2016-2017. if you look at the tsf, pboc's official measure, it did not pick up that much at all 2016-2
9:20 pm
017 and would have never signaled the reheating of the economy we saw. clearly, they missed something on the upside and missing something on the downside. i know the tsf is looking better and i know the credit is looking better but it is still not enough. rishaad: that just begs the question, if your way of looking bad are things likely to get? charlene: what we have said so far, and i would assume we should be getting more transmission as we close the year and go into next year. i have been making that assumption since summer and every month i keep having to push this out. if we do get a bit more transmission, we're assuming growth slows to the upper 5% range for real gdp. that is lower than the authorities are thinking. they are not going to print a number below 6%.
9:21 pm
we are going to look at slowdown bad enough. yvonne: if you years ago, -- a few years ago, mentioned china needed a massive bailout package. do you still feel that way or as your position changed? charlene: i do still feel that way. i think one of the things that is happening right now, we have a tremendous amount of debt in the system. it is all parked in it in channels. it is not in the audited financial statements we are looking at but it is there. it is dead weight on corporate and financial institutions. i think it is one of the reasons we are not getting great transmission here because so many resources are continuing to go -- we have to capitalize the interest on that debt we have rolled three times already. we have to find another place to park this stuff. over time, it absorbs more and more resources away from the economy. rishaad: please stay with us.
9:22 pm
you can catch up with all of our interviews and also look at the functions we have been studying as well. you can watch us live and dive into any of the securities on the bloomberg functions. send us instant messages during our programming. this is for bloomberg subscribers only. president xi should be speaking fairly shortly. we are looking out for that and more. ♪
9:23 pm
9:24 pm
♪ rishaad: we are back. 10:24 as it isis here in hong kong. president xi is about to speak at the gathering, marking the 40th anniversary of china's reform opening up. part and parcel of that dramatic
9:25 pm
change in the economy. we were looking at some of the past people who have been pivotal in that. still have some of those people who were pivotal too. has grounds tos terminate les moonves and denied him that $120 million severance pay. the board says they include willful malfeasance, a violation of company policy and breach of his employment contract, as well as willful failure to cooperate with the internal investigation. nonconsensual sexual relations. yvonne: robert harrah has been jailed for six years for misleading regulators of the bank's overdue loans. he was also fined $300,000 for conspiring to hide illiquid real estate loans -- delinquent real estate loans. charges against the bank were
9:26 pm
dropped when it agreed to pay a $44 million civil fine. rishaad: article sales, beating estimates reflects the company as it transitions to the cloud. revenue at $9.5 billion in the fiscal second-quarter. weve the forecast product, are looking at $.78 for the analysts. oracle facing cloud challenges from on his on -- amazon. yvonne: let's take a look at some of your movers in japan. just before the lunch break, we are getting some lines from the finance minister speaking about reducing the purchasing tax when it comes to cars. they will be extending housing loans tax exemptions. they are saying these purchases tend to be volatile around a tax hike. there may be some positive effects and we are seeing a mixed bag when it comes to seeing these carmakers today. takata as well, after the
9:27 pm
takeover. stock down more than 6.5%. this is bloomberg. ♪
9:28 pm
9:29 pm
paul: 10:29 in hong kong. i'm paul allen. china's holding treasuries dropped lower in 18 months as lawrence currency reserves declines. bills and bonds drop or if it straight month in october to $1.4 trillion. that is down from $1.15 trillion in september. china remains america's biggest foreign creditor followed by japan. facesa says australia that could disrupt household spending in lower unemployment. the last policy meeting, noting a generalized tightening of
9:30 pm
credit availability. even as it sees a rise. the rba notes low household income growth and falling home prices. the italian prime minister has taken revised budget proposals to the european commission, but eu officials say no agreement is imminent. package tot of a new send to brussels over accusations the original proposal would break eu spending regulations. the two talks were held on monday but there is no agreement. goldman sachs shares fell to a 26 month low after malaysia laid criminal charges to the scandal. authorities believe goldman misled them from one bond sales was misappropriated. malaysia was seeking fines in excess of $2.7 billion, alleging they misused funds and fees
9:31 pm
received by goldman. oc,hours a day on tict powered by more than 2700 journalists and analysts. i'm paul allen. this is bloomberg. congratulations going around as china honors the reform pioneers, marking 40 years since china opened up the economy. we are still with charlene. yvonne: talking about the past 40 years. you talk about the development we have seen, which is undeniable. do you think this is a function of the state planning, the so-called china model we have seen, or growth despite that? it was more about marketization, entrepreneurship? charlene: i think it was a mixture. we had decades of what is an incredibly hard-working population suffer a lot.
9:32 pm
they were actually given the freedom to go out and make their own money and be entrepreneurial, things just took off in a way you went unnecessarily -- not necessarily see. i do believe china has the hardest working population in the world and there is a lot of them. they can drive growth a lot. on top of that, i think the planning worrying tatian of the government was very integral in that development. what we saw was an emphasis in fdi over portfolio investment. that meant bringing foreign companies in for the long haul. no short-term funds. a very comprehensive infrastructure buildout. it could become the manufacturing sector of the world. i think it was great planning and got them to this point. over the last 15 years, particularly in the last decade since the global crisis, it has
9:33 pm
been so debt rampant. an unwillingness to allow the adjustments that need to be made in the economy. and to use debt to pay for over it. that cannot go one. rishaad: amazing statistics. ftedmillion people liv out of poverty. enough to raise the trade war in washington. is it really about this, about trade, or about china's rise ultimately? charlene: i think it is about both. certainly, there is a trade element to this but no doubt there are ip and cyber theft issues associated with this. i think more broadly, we have worked in the west under the assumption that we give china the benefit of the doubt and we just read a lot into these broad
9:34 pm
statements they make in these party documents. we think, ok, this is what they means in this is what will happen. the reality is more and more people are saying wait a minute, this country is not where we thought they would be at this point. in fact, they are going down a very different path that is not great. yvonne: apart from just financial market opening up. charlene: i think there is something definitely broader that is going on. this is what makes this so difficult at this point because president trump has clearly broadened this dialogue to something that is beyond trade. and it is going to be very difficult, i think, for the u.s. to make this go away just for the trade deal. you can see the u.s. side after the arrest of the cfo saying that trade is one thing, all
9:35 pm
these other concerns are something else but that is not how china views this. they view this as a comprehensive relationship. they are not going to have a deal on one issue and a bunch of contentious issues. rishaad: you have seen the narrative change in various media outlets in china now, the not these for the communist party. trumpade war with donald wanting to bring us down. how germane is that? charlene: we definitely notice that. i don't know if it is quite as permissions as somebody trying to take down china, but i think there are issues here where the government has clearly been pushing in very contentious directions in a lot of different fronts. if they thought they could do that without any kind of pushed back, that was probably naive
9:36 pm
and they were able to get farther then they probably would have been expected. now, we are just getting a very strong pushback on everything. this is where i think china does absolutely have to reevaluate how they are dealing with everyone, and this includes not just western countries but also the smaller countries they deal with. there is a very big pushback going on there. yvonne: we reported about china recently designating these financial institutions as systematically important. too big to fail. do you think this is a signal that china authorities are seeing the bigger risk of a financial crisis? are we near that part yet? charlene: we certainly could be nearing that next year if we continue to see this very disappointing transmission and credit continuing to disappoint. growth will start collapsing and that is not going to be positive. it will create financial
9:37 pm
institution instability. that could be part of that. i think the other element is the fact we have had entities like tencent, these type of entities getting into financial services that are not regulated. even some of the financial institutions getting into more of a financial holding company, broadening into all sorts of areas like amc's, and getting into trouble. just a recognition on the part of the authorities that we need to be regulating anyone who is systemically important in any of these activities. i think it is twofold, but i would not read that just as them saying, ok, we need to be crisis ready here. rishaad: doesn't get worse -- does it get worse between beijing and washington? charlene: i think it could, definitely. the way i look at it is we think we are getting a bigger than expected slowdown next year. it is very hard for me to see
9:38 pm
beijing being very aggressive before this issue with the u.s. is resolved. i think they are just waiting to see because they have to get more aggressive later in the year. rishaad: have to cut you short but thank you for joining us. asia partner and head of asian research. yvonne: still ahead, we are talking about these asian tech stocks seeing valuation plummet. we will ask credit suisse if they think it is time to buy in. this is bloomberg. ♪
9:39 pm
9:40 pm
♪ back, having a look at tech in this part of the world. cuts to both 2018 and 2019 earnings per share. earnings downgrade slightly itself. several factors are likely the
9:41 pm
first quarter of next year, and that is regardless of what happens in this trade war. yvonne: joining us now is the head of asia-pacific technology and credit suisse. tell us more. we have a chart that shows valuations. i want to kick off with that because we have seen these valuations in the u.s. as well as in asia. about 17 times for asia. are we cheap enough yet or wait this out? things willnk probably bottom by first quarter. i say probably and a small correction to that is not the respective to what happens in trade. it is likely the scenario. if we escalate dramatically from where it is, it looks like things could take longer to bottom but this year has been interesting. we started the year with a more concentrated view on tech but it
9:42 pm
has gotten worse. one is about here and now, particularly from china, demand has disappointed. if we look at automotive as one example, down sharply. the first down year for automobiles in china in 20 years. rishaad: since 1990. manish: absolutely. smartphones have been falling between midteens to 20% a year. none of the other markets in the world seem to show that decline. china has been an issue. theis about the u.s., extraordinary expansion for almost 10 years. people are worried that u.s. will short out. and the trade dispute affects markets. what we have seen in the second half and more anecdotal evidence. you wantal reaction is
9:43 pm
to be around growth and manufacture. the second is the cycle. you are going with very low inventory at this time because you would rather err on the side of a stock out than core demand. people carried that slightly higher because it was not run out. that is where we felt positive. expectations are low, valuations are low. rishaad: buy? it has been like that for the past four to five months. manish: absolutely. the u.s. continues to go up until late september or so and started correcting later. the index is heavily linked to u.s. index. becomescorrect, asia cheaper, one in a while, it turns out to be right. 2008 was an extreme case. that is what keeps people little bit worried, but our view,
9:44 pm
balance put together, we are buying into the key teams. yvonne: how do you square that with these analyst reports slashing expectations when it comes to chinese tech? the breadth of it, you have mentioned it is pretty steep. do we see further cuts in 2019? manish: i think it is fair to say cuts will continue until january and february. i think earnings will still need to be cut. on january of 2018, people got january completely wrong in terms of earnings. who is to say you don't get 2019 wrong? the fear is getting pricing which is a good thing for markets. if you want to make money. we have already selected one in areware because all cycles met. every once in a while, people get excited about another product. there is no growth around smartphone, tv's.
9:45 pm
we are playing the emerging cycles. you look at -- rishaad: i have got to interrupt you because as important as you are, president xi jinping -- thank you so much for coming. manish from credit suisse. let's get to what is going on at the great hall of the people. president xi. heralding theand start of the great journey reform, opening up a socialist modernization. 40 years on, we are gathered here to review the remarkable progress of reform and opening up in the past 40 years. to take stock of the great achievements and valuable all party, to rally members and all chinese people,
9:46 pm
to advance reform and opening up in a new era. tirelessly to goals and the chinese dream of national rejuvenation. [applause] president xi: the third session was convened at an important historic juncture when the party and our country were at a crossroads. it was a time when the world economy was developing rapidly and technology was making progress every day. china, however, ravaged by the decade-long revolution, was on
9:47 pm
the brink of economic collapse. and struggling to meet people's basic needs. urgent need for reconstruction. people in an outside the party -- and outside the party strongly demanded the mistakes of the cultural revolution be corrected. so that our party and nation could emerge from a difficult period. one pointed out if we don't make reforms now, our marketization program will be doomed. led and supported by veteran revolutionaries, the third
9:48 pm
plenary session broke free from the long existing shackles of leftist mistakes. of repudiated the fallacy the two. the session fully recognized that a scientific system of -- must be correctly understood in its full context. of thesion spoke highly debate on the criteria. repudiated the slogan that class struggle is the key link. and reestablished the marxist ideological, political, and organizational line. signified the beginning of reform and opening up in china. icr party made the histor
9:49 pm
decision of going for reform and opening up based on a profound grasp of the future of the party and of the country. in-depth review of the experience gained in socialist revolution and development, on keen insights into the trend of a thoroughand on understanding of people's escalations and me. -- needs. pointed out poverty is not socialism and we must keep abreast of the times. that is the very purpose of our reform.
9:50 pm
history runs on its own laws, yet people are not destined to be passive. understanding of the general trajectory of history, people will be able to see historical opportunities for change and make pioneering efforts for greater progress of mankind. up is a greatning reawakening of our party, one creativityed great theory and practice for our party. up is a greatning revolution in the history of the chinese people and the chinese nation. a quantumropelled
9:51 pm
with chineselism characteristics. [applause] the founding of the communist party of china, the founding of the people's republic of china, and the pursuit of reform and opening up policy and socialism with chinese characteristics -- these historic events taking place movement may 4 represents the three milestones in achieving china's great national rejuvenation in modern times. as the chief representative,
9:52 pm
chinese communists developed the thoughts by combining the basic tenets of marxism, leninism, where the actual practice of the chinese revolution. they united and let the whole party and people of all ethnic groups in china with long and hard struggles. completed the new democratic revolution. built the people's republic of china. and established the socialist system as china's basic system. thusse communists accomplished the most profound and the greatest social transformation in china's history. and created the fundamental political condition and institutional foundations for all development and progress in china today. process, despite the
9:53 pm
serious effect -- setbacks it went through, the party developed distinctively created theories and made tremendous success in socialist revolution and development. thus, providing invaluable experience as well as a theoretical basis for launching the great initiative of building socialism with chinese characteristics in a new historical period. after the third plenary session of the 11th committee, chinese a chiefts would have representative. united and letting the party and all ethnic groups in china and conducting a thorough review of china's experience with socialism both positive and effective. on that basis, and drying on the
9:54 pm
experience of world socialism, they have established some theories and made the historical decision to shift the focus of the party and the country to economic development. of to pursue the policy reforming and opening up. they achieved appreciation of the underlying goal of socialism and established the party's basic line for the primary stage of socialism. and called for taking building socialism with chinese characteristics. provided scientific answers to basic questions in this regard. three-stepted a development strategy aiming to basically realign socialist modernization by the middle of the 21st century.
9:55 pm
the great initiative of building socialism with chinese characteristics was successfully launched. first plenary session of the 13th committee, chinese coming it's -- communists would have a chief representative and ofted and led the party adhering to the party's basic theory, deepening their understanding of what socialism is and how to build it. and what kind of party to build and how to build it. bilevel newd experience in governing the party and the country. of threed the theory represents. standing the severe test posed by complex domestic and international development, and
9:56 pm
major setbacks in world socialism, they upheld socialism with chinese characteristics, set the goal of socialist market reform, and developed a basic framework for achieving this goal. they reaffirmed the basic economic system and a system of income distribution and primary stage of socialism. inered in a new phase carrying out reform and opening up, and pressed ahead with a --at new after the party's 16th national congress, chinese communists with a new representative united and let the whole party and people of all ethnic groups in
9:57 pm
china in continuing to take the guidance. development,of new they forged a deep understanding of a major question, including what kind of development to pursue and how to pursue it in a new situation? thus, forming the scientific outlook on development. the important period of strategic opportunity and andnced theoretical institutional exploration in the process of building a moderately prosperous society of putting people first and calling for comprehensive balanced and sustainable development. chinese communists in the overall plan of building socialism with chinese
9:58 pm
characteristics centered around ensuring and improving people's well-being, promoting social fairness and justice, building a harmonious world and strengthening the party's governance capacity and advanced -- thus, successfully upholding and developing socialism with chinese characteristics from a new historical starting point. 18th party congress, the cpd central committee has united and let the whole party and people of all ethnic groups in china in comprehensively assessing new developments at home and abroad. future, weo the addressed the major question of our time. what kind of socialism with chinese characteristics the new era requires us to uphold
9:59 pm
and develop, and how to uphold and developed it? established the thought on socialism with chinese characteristics for a new era. we have implemented the five sphere integrated plan and the four-pronged comprehensive strategy. upheld progress while ensuring stability. ideas, newforth new thinking, and new strategies for the work of the party and the on various fronts, bring historic changes and historic achievements in the these of the party and country -- and the cause of the party and the country and socialism new era of with chinese characteristics. with tremendous political havege and division, we reaffirmed that the overall goal
10:00 pm
deepeningensively reform is to improve and develop the system of socialism with chinese characteristics. china's system and capacity for governance. we have pursued reform in a more holistic and coordinated way and focused our assets on major institutional with a view to increasing the sense of fulfillment, happiness and of our people. thanve introduced more 1,600 reform initiatives, hard nuts and navigated through dangerous currents. is going deeper, across swift but steady manner. with breakthroughs on multiple fronts.
10:01 pm
greatness is achieved through hardships and difficulties. in the past 40 years, we have worked to free people's minds seek truth from sects, and new ground through bold trials and reforms. from introducing the contract growth ofosting the rural enterprises, and abolishing agricultural tax, animal husbandly tax and agricultural special product tax to separating the ownership contract rights and management rights for contracted rural land, winning the battle against poverty and implementing
10:02 pm
strategy. from setting up special economic opening up key cities in the coastal, border and areas and along the river and major transport routes, to w.t.o., promoting international cooperation, free tradeg pilot zones, planning for a free trade chinese features and successfully hosting the first china international import/export. in to going global bolsteringuring s -- soe's of all sizes and growing sector and deepening reforms and developing mixed entities.economic
10:03 pm
from upholding single public ownership to allowing economic entities of various ownerships by side, withe public ownership in the dominant and consolidating and developing the public sector and encouraging, supporting and guiding the development of the nonpublic the traditional system of planned economy to the innovative system of socialist and to the reform that aabled the market to play decisive role in resource allocation and the government to role.- better play its reform on theing economic system to comprehensively deepening reform economic, political, social and ecological systems and a building, wety have made steady progress in advancing a series of major initiatives, including
10:04 pm
the institutional reform of the government,e reforms of the administrator law-basede system for governance, the judicial system, theforeign affairs system, social governance system, the ecological inspection system and the national security system. and the reforms of national defense and armed forces. of the institutional framework leadership and building and the discipline and supervision system. have continued to implement measures that deliver greater benefits to our people. have thus opening up become the defining feature and undertakingarkable of contemporary china.
10:05 pm
[applause] and friends, four decades ago reform and opening in and a new progress to a new century. put china on a new starting point. today, four decades on, china new era.ed a through four decades of united, and persistent struggles, the communist party led the chinese people on a soul-stirring historical journey and achieved accomplishments that moved heaven and earth. [applause]
10:06 pm
in the past 40 years, we have been committed to freeing our from facts,ng truth moving with the times and applying a realistic and problematic approach. have followed the guidance of marxism and the basic principles of scientific socialism, innovation in theory, practice, system, culture and other courage.ith socialism,enriched characteristics in both practice and its distinctive features in keeping with the times. path,e developed the the culture of socialism with chinese characteristics and improved the of scientific socialism with irrefutable facts.
10:07 pm
banner of socialism continues to fly high over the land of china. [applause] the past 40 years, we have been committed to fulfilling the economicask of development and unleashing and developing productive forces. 367.9s g.d.p. grew from 82.7 trillion in 2017. basis..5%, annual since the inception of reform
10:08 pm
opening up china's share of 1.8% to.d.p. rose from 15.2%. than 30% ofore global growth for years. china's foreign trade of goods 20.6 billion u.s. 1400 u.s. over dollars. we have attracted over two trillion u.s. dollars of foreign investment. invested 1.9 trillion u.s. overseas. we have also become a top agricultural products. we have put in place the most complete, modern industrial
10:09 pm
achieved many innovation breakthroughs in science and technology and completed a of key projects. we have come a long way in infrastructure development, railway, andoad, aviation networks covering much of the country. ther dam projects, west-east pipeline project and the south-north water transfer project bring power, natural gas and water to all parts of the country. china's high-speed rail, ocean liners and planes connect the countryrts of like never before. china is now the world's second the biggestnomy, manufacture -- second largest economy, the biggest top trader of goods. and the second-largest consumer of goods and second-largest
10:10 pm
recipient of foreign direct investment. for many years in a row, china of then the holder largest of foreign exchange reserves. madehinese people have decisive strides towards greater prosperity and national strength. [applause] >> in the past 40 years, we have been committed to pursuing the path of socialist political advancements with chinese characteristics, deepening reform of the political system socialistping democracy. the institutions by which the party and state exercise been improved. substantial progress has been in pursuing -- governing all fields. the chinese socialist system of laws has been strengthened,
10:11 pm
stronger institutional and legal guarantee for the people around the country. rights,ield of human progress has been been achieved across the board. patriotic, united front has been formed. aople enjoin and exercise wider range of democratic rights scribed by law in more diverse forms. people, with the future in their own hands, are demonstrating enthusiasm, initiative and creativity. are an overwhelming force, forging ahead on the part of up underpening socialistic modernization. [applause] the past 40 years, we have
10:12 pm
developing ad to socialist to cultivate and observe socialist values and carry forward the fine traditional chinese culture. we endeavor to guide people with scientific theories. unite them with public developing a, with an advanced socialist culture and raising socialist cultural ethical standards. efforts have been made culture and to draw inspiration fine works. patriotism, collectivism and are very much alive in people's hearts. haverole models and heroes emerged. culture and arts are booming. and the development of internet and information technologies is gathering pace. the ideals, convictions and cultural confidence of the chinese nation have been
10:13 pm
powerthened, by the soft and influence of the chinese culture. of reform andit opening up, which is borne out endeavorsyear long has significantly enriched our national character and become prominent hallmark of the chinese people in the modern day. [applause] >> in the past 40 years, we have ensuring andd to improving people's living standards through development. with programs ensuring people's education,hild care, employment, medical services, housing, and social assistance. people's lives and well-being
10:14 pm
have continued to improve. capita, disposable income toreased about 171 yuan 26,000 yuan nationwide. the middle income group expand.s to of 740 million chinese people were lifted out of bringing the poverty head count ratio down by 94.4 points, which is a fighte in mankind's against poverty. education has seen all-around with the percentage of students completing nine-year compulsory education reaching 93.8%. china has put in place the
10:15 pm
largest social safety net in the elderly care,g health care, subsistence allowances and housing. pension schemes cover more than $90 million people and health insurance plans cover more than 1.3 billion people. permanent urban residents now 58.52% of the total up by 46 percentage points. life expectancy has been extended from 67.8 years in 1981 76.7 years in 2017. the stability china has enjoyed decades make it one of the safest countries in the world. [applause]
10:16 pm
coupons of food, cloth, meat, fish, cooking oil, tofu, goodsies and industrial were once part of people's daily life. only seen in museums. povertyshortage and that plagued the chinese people of years have been generally left behind. [applause] we havee past 40 years, stayed committed to protection,l
10:17 pm
conservation and the building of an ecological civilization. we have accelerated our efforts to develop a system for building ecological civil laition, steadily improved the functional zoning, made big headway in achievedreduction, progress in major ecological conservation and restoration significantly strengthened ecological and environmental governance and in andy participated played a leading role in toernational cooperation respond to climate change. all these efforts have made our homeland a more beautiful and a to live.ace [applause] years, we have the absolute party forceship over the armed
10:18 pm
and steadily advanced the modernization of national defense and the military. revolutionary restructuring of the people's armed forces, historic in weapons and equipment, a fundamental transformation in the way our is run, and strengthened the revolution task and modernization and standardization programs. the people's armed forces have significantly greater ability to protect our sovereignty, security and developing interests and have become an invincible force the happy lives of our people, the motherland and the world peace. [applause] >> in the past 40 years, we have the greatmitted to laws of peaceful reunification of the motherland. have imp mated the -- resumed
10:19 pm
the exercise of sovereignty, wiping out the century long we had suffered. we have upheld the one china 1992iple and the consensus, economic and cultural promoted peaceful development of relations. separatisterred elements advocating independence, keeping a firm ind on the initiative developing cross-states relations. daughters ofand the chinese nation, at home and abroad, have developed a of reunification with the chinese nation and culture. to pursuerm resolve the chinese dream together. [applause] we havee past 40 years,
10:20 pm
stayed committed to an independent foreign policy of peace. the part of peaceful -- path of developments and a strategy of hop opening we have firmly upheld the basic norms governing international and justice in world affairs. we have made a historic a closed andom semiclosed country to one that embraces all opening up. we have taken an active part in and madeglobalization our contribution to the common development of mankind. we have actively promoted the building of an economy and a shared future a for mankind. forward theed reform of the global governance system. unequivocally opposed power politics and contributed chinese wisdom, chinese approach
10:21 pm
and the chinese strength to world peace and development. china has moved closer to center stage as a widely recognized peace,r of world with contributor to global development and defender of international order. in the past 40 years, we have continued efforts to partythen and improve leadership. active measures have been taken testsress the risks and in reform and opening up confronting our party while gol steady progress has been made in the progress of party building of thetain the purity
10:22 pm
party. and its close bond with the people. vigorous efforts have been made explore the -- the development development of socialism and evolution of human society. to reach newinue realm in adapting marxism to the chinese contest. ach new realm in adaptin >> we have improved the party's political ecosystem, worked to conduct andy enforce party discipline and taken tough action against the of formality's sake, bureaucratickism, hedonism and ex traf gans. gans.l -- ex traf revolutionary tempering has
10:23 pm
party the backbone of thechinese people and chinese nation, always as a forefront of the times. [applause] >> the progress made in 40 years opening up has profoundly changed china. chinese nation, the chinese and the communist party of china. the chinese nation has achieved a tremendous transformation from up, growing rich, to becoming strong. socialism with chinese has achieved a tremendous formation for establishment, development, improvement. the chinese people have achieved
10:24 pm
a tremendous transformation from days of scarcity to a life of moderate prosperity. the chinese nation now stands firm in the east. [applause] we have achieved in the godsend.ears is not a still less, a gift from others. the hard work, wisdom and courage of all of the party and the people of all ethnic groups in china. just a few decades, we have completed an industrialization took developed countries several hundred years. achievedse people have what was once impossible. ourre immensely proud of fellow countrymen and women who unprecedented
10:25 pm
miracle. [applause] c.p.c.ehalf of the central committee, i hereby pay high tribute to all workers, public, intellectuals, servants, officers and the men and women of the people's armedtion army and the police force and the public security police officers who talent andbuted efforts in their own fields to reform and open up and to the socialistion of our country. my high tribute also goes to all parties, public figures without party from allon, and people sectors of society. [applause]
10:26 pm
>> i would also like to extend to ourere greetings fellow countrymen and the women specialong kong and administrative regions, in overseas whines chinese relentlessly for the advancement of china's modernization. [applause] >> i would also like to take this opportunity to express my thanks to all the friends and people from other countries who have shown an understanding of and support for china's reform and opening up modernization. [applause] friends, thend past 40 years eloquently proves the past, theory, system
10:27 pm
socialismlture of with chinese characteristics pioneered in the wake of the plenary session of the 11th c.p.c. central committee, the chinese people, rallying the chinese people, rallying under the leadership of the c.p.c., are completely correct. and the c.p.c. basic theory, line and policy that have since are completely correct. the past 40 years eloquently proves that china's development successful experience and offers a bright prospect for aser developing countries they strive for modernization. china's development has certained the cause of world peace and development a greatesents contribution of the chinese nation to the progress of human civilization. [applause]
10:28 pm
>> the past 40 years eloquently proves that the reform and important wayan for the party and the people to up withhead, to catch the times. the only path to uphold and develop socialism with chinese characteristics, a game-changing what it ising china today, and a game-changing move achieve china's goals and its great national rejuvenation. only by following and proactively adapting to trends can we keep up with the times. as a chinese adage goes, enriches knowledge. more knowledge leads to better practice. the lessons learned in the past 40 years of reform are an invaluable legacy for the party and people -- that the party and people hold dear.
10:29 pm
they're extremely important in continuedhina's to develop socialism with chinese characteristics in the new era. we must cherish and follow such valuable experience for a long time to come and must enrich and grow such assets through further to develop socialism with chinese characteristics in the new era. we must and opening up. first, we must see the party over allits leadership work and keep enhancing and improving its way of leadership. as the reform and opening up in the past four decades has shown, the communist party of china is the most essential attribute of socialism with chinese characteristics and thisreatest strength of system. the party exercises overall leadership over all areas of of ther, in every part country. it is by upholding the centralized, unified leadership that we have been able to achieve the historic a newormation, ushering era of reform and opening up and ofark on a new journey
10:30 pm
rejuvenation of the chinese nation, that we have been able risks andove major challenges and overcome numerous difficulties, that we have been able to respond to change, sail through turbulence, withstand impact of the severe floods, epidemic and devastating earthquakes and tackle international financial crisis, that we have neither retraced our steps to the rigidity and isolation of the turn by taken the wrong changing our nature and abandoning our system. have been able to stay committed to the path of socialism with chinese characteristics. ensure leadership by the party, we must keep improving better it governs to adapt to the requirement of the practice, the time and the people. ensuringestion of leadership by the party, a fundamental principle that bears on the future of the party and the country, all party members and people must maintain a high
10:31 pm
degree of self-consciousness in terms of thinking, political orientation and actions. there should be no hesitation or in any on our way forward, we must become deeply conscious of the to maintain political integrity, follow the leadership alignment.ep in we must strengthen confidence and the culture of socialism characteristics. uphold theolutely authority of the party central committee and the centralized thated leadership and see leadership by the party is exercised in all our work relating to reform, development and stability. success of reform and opening up comes easily. in the years to come, risks and challenges of all sorts are inevitable. there may even be unforeseen dangers. the party must guide the overall situation and coordinate the work of all sides.
10:32 pm
remain committed to practicing scientific, democratic and government, improve the way the party exercises its leadership and improve the party's ability to lead, and strengthen the party's resolve to chart our course, craft overall plans, promote reform china's reform and anding up will break waves sail on the right course. >> second, we must adhere to the andle-oriented approach keep delivering on the aspirations of the people for a better life. as the reform and opening up in the past four decades has shown, theing happiness for chinese people and striving for rejuvenation of the chinese
10:33 pm
nation is the founding aspiration and mission and keep delivering on of the communist party of china. reform andf our opening up endeavor. party of china comes from the people, has its roots among the people and is dedicated to serving the people. serving the public good fundamentally is a purpose and principle of the party. in everything we do -- do must be in the fundamental interest of all our people. in considering and introducing a policy, we must first and backing,ensure the approval and endorsement of the people. we must act in line with our aspirations, respect their views and ideas, care about their worries and concerns improving their livelihood. as we lead the people on our way to adopt andeed
10:34 pm
implement the right theory, guideline and policy, and at the draw strength from the practice, creativity and development aspirations of our people. we must see that our people share the fruits of reform and and are highly motivated to contribute to socialistening up and modernization. on our way forward, the aspirations of the people for a life must always be the focus of our efforts. we must observe the party's fundamental purpose, put into party's mass line, and respect the principle status of the people. we must respect the wishes they the best practices they rise, bearing title to and the role they play. fully stimulate and unlock their creativity.
10:35 pm
improve our democratic institutions, establish more channels diversify our forms of democracy and andngthen the rule of law the legal safeguards so that our enjoy can truly and fully a broad range of democratic rights that are tangible, practical asd prescribed by law. take targeted measures to address the most urgent need of immediate expectations the people. we must -- achieving economic, political, cultural, social and economic fields are shared among our people and that they have a stronger sense of fulfillment, greaterness and feel safer and more secure in a more direct and tangible manner. promote all development of the people and strive for prosperity for all.
10:36 pm
uphold marxism as exploreing ideology and theoretical innovations based on practice. as the reform and opening up in the past four decades have shown, innovation is the lifeline of reform and opening up. to practice,bounds there is no end to freeing the mind. that the engel says final causes of all social politicald the revolutions are to be sought not man's's brain, not in better insight, into eternal truth and justice, but in in the modes of production and exchange. we must base the party's theory on reality and answer the questions f to our times -- of our times and of our people in a
10:37 pm
timely manner. we must expel any dark clouds of misunderstanding that may hinder or constrain or thinking and action. popularizeate and marxism in a context of modern newchina and make breakthroughs in developing marxism. we mustay forward, firmly follow the guidance of lenism, deng xiaoping theory, the theory of three and the scientific outlook on development. with chinese characteristics for a new era. committed to both freeing the minds and seeking truth from facts. we chinese communists are duty-bound to develop marxism in the 21st century and adapt it to chinese context. this is our historic mission. we must enhance our awareness of
10:38 pm
the problems, keep abreast of a strategicd have thinking. we must acquire a keen andrstanding of the nature intrinsic connection of any development from a broader perspective and follow closely the creative practice of hundreds of millions of the chinese people. must draw on the achievements of all fine cultures and world, keeps in the answering new and important questions of our times and in that theice and see truth of marxism developed in contemporaryf china shine with more brilliance. fourth, we must stay on the path of socialism with chinese characteristics. and uphold and develop socialism with chinese features. as the reform and opening up in past four decades has shown,
10:39 pm
the direction determines the future. the past determines the destiny. owneep our destiny in our hands, we must remain true and committed to our original and chosen paths. all of the theories and practice of our party in the past 40 years of reform and opening up and same theme, upholding and advancing socialism with chinese characteristics. is no textbook of golden follow for development in china, a country with more than 1.3 billion people. no one is in a position to chinese people what should or should not be done. chinese writer lew cheng once wrote, what is a road? road is made when many people thistlesearth through
10:40 pm
and thorns. with chinese characteristics provides a broad pathway for china to advance the times and steer the course of development today. we must therefore stay the course. we must continue to follow the fight on socialism with chinese characteristics for a new era of theding principles party's 19th national congress, enhance our confidence in the the culture of socialism with chinese characteristics. what to reform and how to go about the reform must be the overarching goal of improving and developing of socialism with chinese characteristics and china's capacity for governance. what should and can be reformed and make no there cannot be reform. we must stick to the party's
10:41 pm
basic line and remain committed task of economic development and the true basic fours of adhering to the cardinal principles, in a great undertaking of building socialism with chinese characteristics for a new era. this is our abiding and unwavering commitment. fifth, we must improve and develop the system of socialism with chinese characteristics to harness and enhance the advantages of our system. reforming in the past four decades has shown, the fundamental and overarching significance for the longtime stability of the party and the country. tohave worked persistently improve and develop the system of socialism with chinese characteristics. this has bolstered our efforts to unlock and develop social
10:42 pm
productivity, unleash social ti and -- vitality preserve the vigor of the country. and this has fostered vibrant institutions and mechanisms that enable labor, knowledge, country. expertise and capital, to play their full part market andting the opening up all sources of social wealth. on our way forward, we must andervingly consolidate develop the public sector. unswervingly encourage, support and guide the nonpublict of the sector. we must give thought to the decisive role of the market and resource allocation, better
10:43 pm
therage the role of government and ti stimulate the markety of various entities. we must ensure the running of the company by the people and governance and improve the system of people's congresses, the system of multi-party cooperation and political consultation under the leadership of the communist party of china. the system of regional ethnic and self-governance. we must advance law-based governance on all fronts. promote people's democracy to provide systemic and institutional guarantees to ensure that our people run the country. we must strengthen institutional cultural build to stick to our ideas, reinvigorate our culture and raise china's international
10:44 pm
profile. actively cultivate and preserve the core socialist promote the evolution and development of the fine tradition of chinese culture, that our revolutionary culture remain alive and strong an advanced culture in an effort to foster a chinese cull chauculture that shines ine world. must promote social fairness and justice and maintain law and order. enhance institution building on ecological implement thend strictest possible systems for environmental protection. we must get rid of all institutional ailments and vested interests that impede development and step up the building of a set of institutions that are basedonceived, procedure and efficiently functioning to
10:45 pm
establish socialism with chinese characteristics. take, we must continue to development as the top priority compositee our national strength. opening up hasnd shown, unlocking and developing social productivity and increasing the composite strength of socialist countries is an essential requirement and a fundamental task of socialism. we must keep to the central task of economic development, adhere to the strategic thinking that the absolutes principle and that the development we pursue must be sound and of high quality and strive for sustained and healthy progress.nd social only by doing so can we boost our economic and technological strength, defense capabilities and composite national strength lay a solidcts and material foundation for
10:46 pm
upholding and developing socialism with chinese characteristics and for achieving the rejuvenation of the chinese nation. on our way forward, we must continue to focus on tackling the principle contradiction in our society, which is the between inadequaten development and the people's a bettering fee need for life. we must fully provide the vision of innovative, coordinated and for all.lopment andnced the integrated plan pursue the four-pronged comprehensive strategy with coordinated efforts. we must promote high-quality development, strive for parallel progress and new industrialization, i.t. urbannation and agricultural modernization, building of a modernized economy and work andrds greater efficiency greater sustainability.
10:47 pm
sidering around the supply of reform, we must actively upgrader growth model, our economic structure, foster and stimulatevers domestic deposit mabd. we must -- demand. must implement the rural vitalization strategy. carrying out targeted poverty preventing -- and alleviation and preventing pollution. talent is our most important resource. we must implement the innovation-driven development strategy and improve our system andnovation accelerate homegrown innovation in key and critical technologies to foster new engines for economic growth. enhance ecological
10:48 pm
theervation, keeping to view -- follow a green model of life so that our great motherland will become more beautiful and our people will live in a better environment of skies, green mountains and clear water. [applause] >> we must promote joint efforts to build a community with a shared future for mankind. reform and opening up in the past four decades have shown... china cannot develop in isolation of the the world -- china's internal and international imperative, we have stayed committed to the fundamental policy of opening up, followed a proactive andoach to opening up the
10:49 pm
entered a new stage of comprehensive multi-level and wide-ranging opening up, thus creating a sound international environment and broader development space for china. the banner ofigh peace, uphold our fundamental foreign policy goal of andtaining world peace promoting common development. and work to forge a new form of relationsnal featuring mutual respect, fairness, justice and and entered a cooperation. we must respect the right of the people of all countries to choose their own development path, uphold international justice,and international relations and oppose the practices of imposing will upon others. interfering in others' internal the strong bullying the weak. we must continue to play our responsible country, othert the development of developing countries, take a part in reforming and developing
10:50 pm
the global governance system and with all other countries for an open, inclusive, clean and beautiful world that enjoys lasting peace, universal and common prosperity. we must support an open, inclusive and nondiscriminatory multilateral trading system. and make economic globalization more open, inclusive, balanced and beneficial to all. focusing on jointly inclusive ad nondiscriminatory multilateral undertaking the road initiative, we must work with all parties concerned a new platform for international cooperation and to sharedmpetus progress in the world. itsa will never pursue development at the cost of others' interest, nor will china it's own legitimate rights and interests. china pursues a national defense policy that is defensive in nature and china's development poses no threat to any country.
10:51 pm
matter what stage of development it reaches. never seek a germany. eighth, we must exercise full governance over the party to continuously enhance innovate,s ability to the power to unite and the energy to fight. opening up innd the past four decades has shown, schnitt smith tolacks make good steel. lies in the party and its commitment to self-supervision and rigorous in all respects. in the course of leading the great undertaking of reform and socialist and modernization, our party must pursue self-revolution and have courage to i ha rid itself of y
10:52 pm
virus that erodes its health so that the party will have a to lead capability politically, guide through inspire society. the partyis way can always maintain its close ties with the people. mustr way forward, we follow the general requirements for party building in the new enhancing the party's political building as the overarching task and -- >> we're going to leave those scenes there in the forbidden beijing and just at the moment, xi jinping, marking 40 uprs of reform and opening there in china. we've just been calling on china promoteoment to multilateral trading, to promote trade convenience and to play role of a responsible major nation here as well, going on to will nevere country hedgemony either.
10:53 pm
maintaining that they pose no threat to any other country. >> yes. perhaps kind of reaction to some of the trade tensions that we have seen. but of course, the markets not exactly too, i guess, optimistic headlines. we didn't get a clear indication of the path moving forward, stimulus, tax cuts and the likes. get the latest. kind of breaking down these what did you us, make of xi's speech so far? >> i think he's about to staying on the path of opening up. and stay committed to the reforms.l if you'll take a step back, the achievement in last four decades to embracing the economy by opening up and giving private sector more economic freedom. i think they're now trying to
10:54 pm
send the message that they will continue on that mask. help these weak private sector confidence at home. going toalso facilitate the escalation in trade tensions abroad, because addressing the issues in the policy, competitive and neutrality. think it's quite -- a quite positive message. sayhey didn't just socialism. they had to say socialism with chinese characteristics every time he said that. is that they are marking here what they have achieved. ambiguousue, fairly path forward. pledges coming through here, but concrete thus far, wouldn't you agree, robin? >> well, these two events, week 40-year anniversary,
10:55 pm
then the friday's work conference, it's both about general policy direction rather than concrete measures or executive members of the policy. optimistic, both the policy and the structural progress from the anniversary wel make some progress and may see the application in trade tensions and china's policy, because you will see stepped up next two to three months following these two events on the trade front and on the domestic front. >> there's some headlines which made some markets a little bit nervous. he was saying reform and opening is never easy, also saying china face unimaginable difficulties ahead. shifting from that deleveraging to prioritizing growth, that's no easy task. when do you expect the economy to bottom out? we haven't seen this. a pretty ugly picture of how things are going to play out. stimulusig of a large
10:56 pm
package do we need to see to stabilize growth? china,re bullish in because we think china's policy will work, stabilizing growth second quarter on wards. so they are using so-called three, to address this. number one, tax cuts. caps. two, infrastructure and finally housing policy. deliver aroundto added valuecut in tax. and boost private consumption. liftdly, they are going to the construction bond for 1.35structure, from trillion this year to probably two trillion next year to support. >> this is the same point. historicaleny the achievement of being able to take 700 million people out of
10:57 pm
a short period of time. amazing. the next 20 years might be the of liftingnge challenge from a middle income country per wealthy capita. that's the real difficulty, isn't it? >> yes. we publishedaper, morganther with the stanley. with the supply side reform. now, you have seen the first of supply side reform, as the speech today mentioned, the three d's. deleverageing, decapacity. but now they are entering the stage, further opening up. >> robin, thank you so much. usnk you so much for giving your views of what he was talking about as well and it all robin from morgan stanley. >> it is interesting, though. kind of -- it to
10:58 pm
think no non-democratic country emerge out ofto this. we'll continue these live pictures out of beijing. bloomberg. ♪ berg. ♪ ♪ there's no place like home ♪
10:59 pm
argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪
11:00 pm
♪[music] >> i'm emily chang in san francisco. is bloomberg technology. we are still learning new russia's massive campaign to spread misinformation and influence the 2016 election. are learning that instagram may have been their biggest weapon. may beber's growth flowing but its food delivery business is on fire. head of uber the everything, that is, all the ride hailing.ond


info Stream Only

Uploaded by TV Archive on