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      Structural economic reform urgently needed

      2012-11-08 13:29 CNTV     Web Editor: yaolan comment

      China is now facing a slowing economy. Since the 2008 global financial crisis, China has also been exposed to external risks. These are things like imported inflation from other countries expanding their currency issuance. Taking this into consideration, economists and policymakers agree on one thing: structural economic reform must happen, as a matter of urgency.

      Cheng Siwei, Former Vice Chairman of NPC Standing Committee, said, "China should reduce its reliance on exports and investment, and increase the weight of consumption in its economic growth. And it's better not to set a high GDP growth target as the only task of the government, but to pursue higher productivity and financial utilization, and also to keep pollution low. I think the challenge for the government is whether they can open the local market more to foreign investment, and be able to discover more innovative business plans at home. "

      Gerard Lyons, chief economist of Standard Chartered, said, "In the next five-year plan, Chinese government is highlighting the role of consumer, social security and green economy in growth. But I also want to mention that China still need to maintain some traditional low cost businesses, which produce low income."

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