Xi calls for solid efforts to win three tough battles

Chinese President Xi Jinping yesterday urged solid efforts to win the “three tough battles” of preventing financial risks, reducing poverty and tackling pollution.

Xi made the remarks at the first meeting of the Central Committee for Financial and Economic Affairs.

Preventing and defusing financial risks is relevant to national security, overall development and the security of people’s property, and is a key threshold that the country must cross to achieve high-quality growth, said Xi, who is also head of the Central Committee for Financial and Economic Affairs.

The country has made progress in its fight against poverty, a battle that must be won, Xi said.

Environmental issues are a major concern for the public, and are decisive to Chinese people’s judgment of the success of building a moderately prosperous society in all respects.

To prevent and defuse financial risks, China should reduce the leverage ratio of local governments and companies, especially state-owned enterprises, according to a statement released after the meeting. Tailored policies should be used to control risks in different financial markets, the statement said.

Financial supervision at the state and local level should be better coordinated while local governments should be responsible for controlling local financial risks.

Problems that may threaten social stability and lead to systemic risks shall be dealt with first, it said.

The Financial Stability and Development Committee, a new agency set up last year under the State Council, will play a role in the battle against financial risks, while local governments must also be responsible for addressing potential risks under a tightened financial regulation system, according to the meeting.

To reduce poverty, authorities should stick to the current poverty relief standards, and should not make arbitrary decisions to raise or lower the standards.

Policies must be updated to guide sources to extremely poor regions in a bid to effectively help targeted people in need for help.

Measures to boost education quality and health care services for people living in these poor areas must be stepped up, while efforts shall be made to facilitate sales and distribution of agricultural products planted in the poor areas.

China should also encourage the use of clean energy and reduce the use of coal in its fight against pollution, according to the statement. Also, rail transport will be favored over road transport, while organic fertilizers will be encouraged.

By 2020, the total discharge of major pollutants will be substantially reduced, and the overall quality of the ecological environment will be improved. In the run-up to 2020, significant progress must be made in improving air quality, tackling pollution by diesel trucks, and protecting and restoring Bohai Sea and the Yangtze River area.

The meeting approved work rules of the Central Committee for Financial and Economic Affairs, and stressed the Communist Party of China Central Committee’s leading role in the nation’s economic work.