China will not return to managed economy

China does not want to return to a planned economy. That said President Xi Jinping on Saturday in response to American criticism that the country with the second economy in the world has not implemented the promised reforms.

“We have come to understand that we should not ignore the blindness of the market nor return to the old path of the managed economy,” Xi told political advisers to the annual People’s Congress in Beijing. He reiterated the government’s position that markets should play a “decisive role” in the economy.

China is taking into account increasingly negative responses from the US, where the Trump administration is threatening measures in many areas, from trade to dealing with the corona crisis. The White House voiced widespread criticism of Chinese economic and military policy this week, including allegations of intellectual property theft and economic protectionism.