Smooth transition in growth engines,
people-centered policies highlighted
BEIJING, July 25,
2024 /PRNewswire/ -- A news report
from chinadaily.com.cn:
China will likely pursue a new economic model to drive a smooth
transition in growth engines, potentially providing an alternative
solution to the global challenge of low productivity growth,
according to leading economists and executives.
They said this approach features a greater play of market forces
in resource allocation and technological innovation, but differs
from the Western free-market paradigm, as it upholds a
people-centered policy orientation and underlines top-level
government design.
By implementing the model, China could achieve around 5 percent
annual economic growth over the coming five years, they said, with
first-half growth results having shown that the country is
positioned to navigate the property market correction and increased
external uncertainties as new growth drivers flourish.
"I think this is really very unique, what I will call the China
model or China economic model," said Zhu
Min, former deputy managing director of the International
Monetary Fund and former deputy governor of the People's Bank of
China, the country's central bank.
In an exclusive interview with China
Daily, Zhu said that China has made it clear that it would
build a future model for the nation's economic development by
establishing a high-standard socialist market system with Chinese
characteristics.
The resolution adopted at the third plenary session of the 20th
Central Committee of the Communist Party of China has set the goal
that by 2035, China will have finished building a high-standard
socialist market economy in all respects.
Based on the resolution, China's economic model will feature
market forces playing the pivotal and most important role, while
reforms pushing technological advances, strengthening local
government finances and improving people's incomes and welfare will
also serve as critical pillars, Zhu said.
"I think those are very important messages and policies for
China today and for China moving into the future," said the
renowned economist, as these messages respond to worldwide
discussions about what defines the economic development model that
underpins China's growth miracle.
Zhu said that the model features two pivotal changes: giving
more authority and space to companies as the base units at the
forefront of driving technological innovation, and increasing local
governments' revenue, equipping them with many more resources and
responsibilities. By granting more authority and freedom to
enterprises and local authorities, rather than concentrating the
power at the central level, the changes will bring more economic
activity and strength, reflecting a market-based reform approach,
Zhu said.
Zhu added that further opening-up will remain a crucial growth
engine for China, citing the importance of welcoming more foreign
capital into China and encouraging Chinese companies to make
overseas investments and transfer advanced technologies across the
border.
Liu Qiao, dean and a professor of
finance at Peking University's Guanghua
School of Management, said the plenum mapped out China's
unique path to achieve modernization and can provide a new solution
to the global challenge of low productivity growth.
Liu said that China's modernization approach combines the role
of bottom-up market forces with the government's top-level design
to effectively mobilize resources to confront the most critical
problems the nation faces in development, which makes it different
from the free market paradigm prevalent in Western economies.
With the plenum outlining further market-oriented reform, Liu
said China is very likely to see a recovery in productivity growth
and achieve about 5 percent economic growth over the next five
years. That would set the stage for doubling China's GDP per capita
from its 2020 level of 71,828 yuan
($9,890) by 2035 and basically
achieving modernization.
In the first half of the year, China's economy expanded 5
percent year-on-year, in line with the annual growth target,
compared with 5.2 percent growth in 2023, the National Bureau of
Statistics said.
Zhu, the former IMF official, said, "I think the first-half 5
percent GDP growth and last year's growth show that China is in a
position to manage the transition (in growth drivers) in a smooth
way."
He emphasized that China's manufacturing sector has grown in
international competitiveness, which explains the global popularity
of Chinese electric vehicles. This success is not due to so-called
subsidies or dumping, the allegations of which are false, Zhu
said.
Acknowledging the strength of China's manufacturing capacity,
Julian MacCormac, regional director
of Rolls-Royce Greater China, said China "has been and is an
important part" of the supply chain of the British giant in power
and propulsion solutions.
Anu Rathninde, president of Johnson Controls Asia-Pacific,
hailed China's ongoing efforts to deepen reform and expand
opening-up, saying, "As China's economy grows, the foreign
enterprises grow and benefit equally."
Rathninde said China is one of the most important markets for
the United States-based smart
building solutions provider, and the company will continue to
expand its manufacturing and R&D capabilities in China.
View original
content:https://www.prnewswire.com/news-releases/new-economic-model-set-to-boost-strength-302206360.html
SOURCE chinadaily.com.cn