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China Daily Website

Speed structural reforms

Updated: 2013-10-22 08:11
( China Daily)

China's mild economic rebound in the third quarter has largely secured its chance of meeting the 7.5-percent annual growth target for this year.

This is certainly good news for the world economy that has just been unnecessarily shaken by the US government shutdown and potential debt default.

Speed structural reforms

Chinese Premier Li Keqiang (front, C) gives a speech about economic situation at the 16th national congress of the All-China Federation of Trade Unions, in Beijing, capital of China, Oct 21, 2013. [Photo / Xinhua]

China's gross domestic product grew 7.8 percent year-on-year in the July-September quarter after it dipped to 7.5 percent in the second quarter from a rise of 7.7 percent in the first quarter. It is assuring that China has so far managed to continue to serve as a source of stability in a world of fragile and uneven growth.

When the country's growth slowed to 7.5 percent several months ago, there had been worries that Chinese policymakers may have to resort to massive stimulus to avoid a hard landing.

However, the latest growth acceleration, moderate as it is, has not only proved the resilience of China's economic fundamentals, it also added to the credibility of Chinese leaders' determination to advance structural reforms to sustain its long-term economic development.

Premier Li Keqiang stressed on Monday that the foundation for economic rebound is not yet stable. Deep conflicts remain and future development still faces risks and challenges.

Such a sober understanding about the Chinese economic reality is crucial to thorough and immediate implementation of all the measures the central government has rolled out to promote reforms and restructuring.

The government has so far introduced key reform measures, like streamlining administration and facilitating trade and investment while not expanding deficits and not loosening or tightening money supply. It is also widely expected that more comprehensive reforms will be mapped out during the Third Plenary Session of the 18th Communist Party of China Central Committee due in November.

Following decades of double-digit growth, many local governments may have found it hard to wean themselves of dependence on investment for growth.

It is thus necessary for the central government to keep urging local officials to focus on shifting the growth model and on structural readjustment.

(China Daily 10/22/2013 page8)

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