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Comments on China's central economic work conference

(chinadaily.com.cn)
Updated: 2008-12-08 20:45

David Dollar

, country chief for China, World Bank

 

China has announced some big policy moves in the past few weeks to stimulate the economy, like the 4 trillion yuan fiscal package and the reduction of interest rates by 108 basis points. The government should utilize the lower oil prices to eliminate the remaining energy subsidies and replace them with a tax. Other taxes can be cut to keep the overall tax burden stable. Making energy more expensive in the long run is the best thing China can do to spur energy-saving innovation.

I am also in favor of more competition in service sectors such as logistics, telecom, and finance. Competition will lead to more innovation in these sectors.

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