China needs new growth models – World Bank, Chinese govt

27 February 2012 10:00  [Source: ICIS news]

SINGAPORE (ICIS)--China needs to implement new strategies and reforms during its next phase of development to avoid a sudden slowdown in its economy, a report from the World Bank and a Chinese government agency said on Monday.

The report, “China 2030: Building a Modern, Harmonious, and Creative High-Income Society”, was released by a team from the World Bank and the Development Research Center (DRC) of China’s State Council in Beijing.

In the report, the team said China should move towards a market economy through enterprise, land, labour and financial reforms.

It should strengthen its private sector and encourage more competition, innovation and equal opportunities, the report said.

The report recommended steps China can take over the next several years to deal with risks, such as a hard landing in the short term, as well as challenges posed by an ageing workforce and rising inequality.

The report outlined six strategic directions for China’s future: implementing structural reforms, accelerating the pace of innovation, adapting green technology, expanding opportunities and promoting social welfare, modernising and strengthening its domestic fiscal system, and seeking mutually beneficial relations with the world by connecting China’s structural reforms to the changing international economy.

“China’s leaders have recognised that the country’s growth model, which has been so successful for the past 30 years, will need to be changed to accommodate new challenges,” World Bank group president Robert B. Zoellick said in Beijing.
By: Fanny Zhang
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