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China Daily Website

Quality is more important than speed

Updated: 2013-10-25 22:47
( chinadaily.com.cn)

Economic structural transformation is the main task facing the economy, said an article in the Beijing News (excerpts below).

It will not be a problem for the government to realize the annual growth target of 7.5 percent. But the speed of structural transformation is going more slowly than expected.

Some policies of the central government cannot be implemented well by local governments. For example, cement and electrolytic aluminium production are both backward industries earmarked by the central government to be reorganized. But, for many local governments, the lack of ability and conditions to develop new industries mean these polluting industries remain indispensable revenue and growth contributors.

But there are also some positive changes in the structural shifts.

The currency policy is stable and prudent despite the need to boost growth. And the government continues to decentralize its powers and simplify administrative procedures.

The establishment of the Shanghai Free Trade Area also bodes well for China's exploration for solutions to some knotty problems in future market reform.

The government needs to divert more loans and resources, mainly focused on State-owned enterprises and local governments, to the private sector, especially small and micro businesses. Only when the private sector gains its vitality can economic structural transformation be accomplished.

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