Forbes commented that while China laid out several stated goals at its central economic work conference at the end of last year, including maintaining financial stability, reducing poverty, and improving the environment, the biggest unstated economic outcome that we can expect in 2018 is continued strong government involvement in the economy. This comes with a host of problems as marketization of the economy is stalled. Stronger government presence will be found in three major areas: State owned enterprises, Financial markets and Capital controls and exchange rate... Expanded government presence in the economy doesn't come without a cost, however. First and foremost, SOEs are less profitable and efficient than private enterprises. They produce a smaller amount of GDP compared to that generated by the private sector, but consume about a third of bank loans and investment...Second, government intervention in financial markets has led investors to become careless...Finally, capital and exchange rate controls stall China's RMB liberalization and financial reform processes. While it is clear that China is interested in promoting an internationalized currency, without opening up of the capital account and exchange rate regime, this will remain a distant goal. Furthermore, capital inflows and outflows are restricted, reducing China's participation in the global economy...Heavy handed state intervention will continue through 2018, for better or for worse. This will help to ensure stability, for sure, but at the expense of market reform, growth, and internationalization.

Fianancial Times reported that Airbus is offering an industrial partnership with China on the A380 if Chinese airlines place orders for the world's largest passenger jet, whose future is in doubt unless it wins new customers. Fabrice Brégier, Airbus's outgoing chief operating officer, will hold early stage discussions on the subject when he heads to China on Monday as part of a trade mission accompanying French president Emmanuel Macron on his first state visit to the country.  Airbus is also proposing to increase production at its Tianjin final assembly line, where it produces four A320 single-aisle aircraft a month. It could increase the rate to five a month, according to people close to the discussions, which would be factored into the planned global increase from just over 50 currently to 60 a month by next year.  The talks come as the European aircraft manufacturer hopes to clinch a deal to sell some 100 aircraft to state-owned China Aircraft Leasing Group during the visit, according to reports. The order is likely to be a mix of single and twin aisle planes, with China not expected to order A380s at this stage. The rate increase could also be announced then. The moves are part of Airbus's strategy to strengthen its presence in China, where demand for aircraft is expected to outpace western orders significantly in the next decade. Both Boeing and Airbus are increasing their industrial presence in the country in an attempt to woo orders.