Statistics Canada reported that manufacturing shipments rose 0.6 per cent to $49.9 billion in September which it is more than expected. The Toronto stock market moved up amid optimism surrounding a sweeping economic reform plan from the Chinese government and confidence that the Federal Reserve likely won’t be cutting stimulus as early as thought.
In a report issued after a closely watched Communist Party conference, China’s ruling party pledged to ease barriers to private competitors in markets controlled by state companies. At the same time, they reaffirmed that government-owned industry is the core of the economy. It left out many details of what role private or foreign competitors might be allowed in government-controlled industries such as energy, telecoms and finance. But it outlined changes clearly intended to make industries more efficient and productive by injecting more competition.
Chinese leaders are under pressure to replace a growth model based on exports and investment that delivered three decades of rapid growth. It is actually hard to control the extent of free market in the communism country since the open market somehow represents capitalism. However, in nowadays society there is no extreme social attributes anymore, all of the societies apply mixed economy. Also, as the economic globalizing, the effect of economic changes is no more isolated in certain region, just like instance in my post, the north American financial condition will be effected by Chinese policy reform.