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Latin Times
Latin Times
Politics
Pedro Camacho

Cuba Eyes China, Vietnam Models for Major Economic Overhaul Amid Crippling

Cuban President Miguel Diaz-Canel (Credit: AFP)

Cuba's Communist Party is debating a package of economic reforms that President Miguel Díaz-Canel says is intended to modernize the country's economic model, reduce bureaucracy and grant greater autonomy to businesses and producers.

The proposals are being reviewed during an extraordinary plenary session of the Communist Party's Central Committee convened by Díaz-Canel.

In announcing the meeting, the Cuban leader said party officials would evaluate "proposals for transformations" that had recently been presented publicly, as Spanish outlet Demócrata reports.

The reform package draws inspiration from market-oriented policies adopted by China and Vietnam and is intended to help Cuba confront mounting economic difficulties, including the impact of U.S. sanctions and ongoing shortages of fuel, food and electricity.

In comments broadcast on Cuban state television, Díaz-Canel rejected suggestions that the measures were being adopted in response to pressure from Washington, arguing instead that they are aimed at strengthening the country's economic model.

"The country is not standing still. The country is intelligently confronting all of these circumstances," Díaz-Canel said. "Our response must be unity and solidarity."

According to Anadolu Agency, the proposals include granting agricultural producers greater flexibility, eliminating the mandatory role of state intermediaries in foreign trade, easing restrictions on vehicle imports and expanding opportunities for foreign investment. The government also plans to grant Cubans living abroad the same economic rights as residents on the island.

The package would further reduce the number of government ministries from 27 to 20 and gradually replace broad product subsidies with targeted assistance for vulnerable populations. Anadolu reported that authorities are also considering changes to the tourism sector following the departure or downsizing of several foreign hotel operators affected by U.S. sanctions.

Official statistics cited by Anadolu show that foreign tourist arrivals fell 55.8% during the first four months of 2026 compared with the same period last year.

Beyond the reforms already announced, La Razón also reported on Wednesday that Díaz-Canel's office has assembled a new advisory group that includes several economists known for publicly advocating deeper economic changes.

The group reportedly includes both government-aligned figures and economists who have spent years calling for greater private-sector participation, expanded foreign investment, more autonomy for state enterprises and reforms to Cuba's monetary system. The reform package is expected to move next to Cuba's National Assembly, where lawmakers will consider the proposals following review by the Communist Party leadership.

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