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Business / Economy

China's reform emphasizes rational growth

(Xinhua) Updated: 2014-11-13 16:52

BEIJING - As China's new leadership is pushing forward one of the most comprehensive and thorough reform agendas on governance and growth pattern, the country will reap more practical benefits, experts said.

Represented by President Xi Jinping, Beijing is advocating rule of law, administration streamlining and sustainable growth, among others, signaling the leadership's pursuit of a more rational mode of governance.

On the economic front, China outlined 60 targets last year for its endeavor to consolidate its economic foundation, giving the market a decisive role, reported South China Morning Post in Hong Kong.

The paper also said Beijing has prioritized the reduction of government intervention, or red tape, in economy, and managed to open up more strategic sectors dominated by state enterprises to private investment.

China's reform emphasizes rational growth
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China's reform emphasizes rational growth
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Specifically, this year China has canceled or transferred to local governments some 600 administrative approval powers, cut redundant government charges of 10 billion yuan ($1.63 billion) and lowered the threshold for market access.

The bid to reduce the government's role in economic management will undoubtedly inject vigor into the market.

Analysts said the general goal of China's current leadership is to hatch out modern national governance, as can be revealed in its promotion of rational, sustainable and inclusive growth that follows the laws of the economy, nature and the society.

In the face of hypes about a "slowdown" of China's economy, Beijing's resolve to strike a balance among stable growth, structure adjustment and economic upgrading is unshakable.

In practice, Chinese leadership reached consensus on forging a "new norm" for the national economy, lowering its growth forecast to 7.5 percent in 2012, marking the first time for the figure to go below 8 percent in eight years.

Such a model of development which emphasizes the rule of law, the fundamental role of the market in resource allocation, and the balance between efficiency and equity, will bring substantial "system dividen

Joachim Fels, Morgan Stanley's chief global economist, said China will switch to brand-new reform-driven growth.

Financial marketization, as well as personal and social independent investment, will improve China's current resource allocation efficiency and switch the country to an economic growth model dominated by consumption.

China's reform initiatives have attracted world attention.

Xi's new book, "Xi Jinping: The Governance of China" that records his speeches and governance philosophy in eight languages, was the most coveted gift for the media people who gathered in Beijing to cover the just-concluded Asia-Pacific Economic Cooperation (APEC) meetings.

The book was also recommended by an article from America's The Huffington Post, which said "the wade is worth the while if you want to grasp the enormity of the changes China is undergoing and how central a consensus forming political system is to realizing those goals."

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