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WB: China should complete market-economy transition

Updated: 2012-02-27 13:58

(Xinhua)

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BEIJING - China should complete its transition to a market economy in order to achieve its goal of becoming a high-income society, according to a report jointly issued by the Chinese government and the World Bank.

The report said China should carry out enterprise, land, labor and financial reform as part of its effort to create a new structure for economic growth. It also said China needs to strengthen its private sector, open its markets in order to foster competition and innovation, and ensure equality of opportunity to achieve its goals.

Chinese policymakers should also shift from focusing only on the amount of growth to focusing on the quality of growth as well, said the report.

The assessment warned of possible risks faced by China over the next 20 years, including the risk of a hard landing in the short term. It said China also faces challenges posed by an ageing and shrinking workforce, rising inequality, environmental stress, and external imbalances.

"China's leaders have recognized 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," said World Bank Group President Robert B. Zoellick.

He said the country "has an opportunity to avoid the middle-income trap, promote inclusive growth, without further intruding on the environment, and continue its progress towards becoming a responsible stakeholder in the international economy."

The report, "China 2030: Building a Modern, Harmonious, and Creative High-Income Society" was issued Monday by the World Bank and the Development Research Center of the State Council in Beijing.

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