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China Daily Website

New growth foundation

Updated: 2013-09-12 07:34
( China Daily)

Five years after the onset of the global financial crisis, it is a pity that many countries continue to talk about reform without delivering much. That is why the global economy still needs to brace for the anticipated withdrawal of major developed countries from their quantitative easing monetary policies.

However, China is embracing sustainable growth with enviable determination, and Premier Li Keqiang made it clear at the opening ceremony of this year's Summer Davos on Wednesday that the government will forge ahead with its reform plans.

China's rise to be the world's second-largest economy over the past three decades has been amazing, but it has come at a high cost to the environment. The country's new leaders want to ensure that future growth will be sustainable, driven by technological innovation and bolstered by the conservation of resources and protection of the environment.

At this crucial stage of the country's economic transformation, temporary measures that buy time during a slowdown but do little to fix the real causes of economic woes will no longer be substituted for the long-term structural reforms that are necessary.

With the economy entering its second phase of growth, one characterized by better quality and higher efficiency, the government has made it a top priority to streamline government and advance reforms of administrative management.

The central government has already reduced or delegated more than 200 types of administrative approval so far this year to create more room for the market to play a bigger role in boosting innovation- and quality-driven growth.

The government has also rolled out a slew of bold measures such as approving the establishment of a free trade zone in Shanghai and speeding up reforms in various financial markets.

Although these reforms will have little immediate effect in stabilizing economic growth, it is expected that their implementation will help lay a solid foundation for the country's sustainable growth in the long run.

As Premier Li pointed out, the growth potential of the Chinese economy is obvious: It is estimated that China's imports will reach $10 trillion in coming five years while its investments in other economies will exceed $500 billion. We firmly believe that the leadership's commitment to reforms will make sustainable higher quality growth more tangible than ever.

(China Daily 09/12/2013 page8)

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