China’s trade war with the United States is spurring some Chinese entrepreneurs, government advisers and think-tanks to call for faster reforms in the world’s second-largest economy and the freeing of a private sector stifled by state controls. The calls for change have become louder as China approaches a key anniversary later this month, although there are no signs that the government is planning to shift any key policies. Tuesday marks the 40th anniversary of the opening up of China’s economy by former leader Deng Xiaoping, and the start of a series of landmark capitalist experiments that lifted much of the country out of poverty and turned it into an economic powerhouse. China has long said it would further liberalise its vast market at its own pace. But a growing number of government advisers feel that now is the time to do so, saying that reforms would defuse trade tensions with the United States and secure China’s long-term economic ascent simultaneously. The United States has demanded that China shift away from its state-led model by cutting industrial subsidies, opening up its market to US goods, and cracking down on intellectual property theft and forced technology transfers. “This could be an opportunity for China as the pressure from the United States could be turned into a driving force for reforms,” an adviser to the government told Reuters. “The pressure on China is very big and we should have long-term preparations.” US President Donald Trump and Chinese leader Xi Jinping agreed to a truce that delayed a planned Jan. 1 increase of US tariffs to 25 percent from 10 percent on $200 billion of Chinese goods while they negotiate a trade deal. To clinch a deal, China could make some concessions, including further opening up its market to US goods, scaling back subsidies and improving intellectual property protection, policy insiders said. But, they added, China won’t ditch its industrial development plans vital to its competitiveness. “The United States has requested China quicken reforms, which are also in line with our interests,” said a second government adviser. “We will push for market-oriented reforms, but we cannot be too hasty and we won’t completely copy the Western model.” The State Council, or the cabinet, did not respond to a faxed request for comment. In June, China unveiled a long-anticipated easing of foreign investment curbs in the banking, agriculture, automotive and heavy industries, as it moved to show it would fulfil pledges to open its markets further. Xi is expected to make a major speech on Tuesday in Beijing to mark the reform and opening anniversary, diplomatic sources say. State Intervention There is widespread disappointment among some Chinese economists over the pace of reforms after top leaders unveiled sweeping plans in 2013 to let the market play a decisive role in resource allocation. Discontent over an increased presence by the Communist Party in all types of businesses has been growing in recent months. “There is still too much government intervention. I haven’t felt any relaxation for the time being and don’t think the government will relax,” said Sam Yu, general manager at MENTECHS, an industrial equipment manufacturer in Jiangsu province’s Changzhou city. Published in Daily Times, December 15th 2018.