Chinachartersacourseforeconomicgrowthin2017withaseriesofcrucialreformsIttakestimetofundamentallytransformthegrowthmodelsbyfurtherdeepeningstructuralreformthisyear.ZhangLiqun,ResearcherwithStateCouncilDevelopmentResearchCenterAnimprovementinpeople鈥檚livelihood,stableeconomicgrowth,structuraladjustmentandriskpreventionweresomeofthekeyinformationfromthe2016CentralEconomicWorkConferenceheldonDecember14-16,animportantmeetinginChinaheldtomapouteconomicprioritiesandreformplansfor2017.Afterdecadesofbreakneckgrowth,China鈥檚economyhasenteredanewnormalofmedium-highgrowth.Inthecontextofcomplexeconomicenvironmentathomeandabroad,thecountry鈥檚topleadershavemappedouta鈥渘ewdirection鈥漟ortheworld鈥檚secondlargesteconomyandareresolvedtopursuenewdevelopmentphilosophiesthatemphasize鈥渋nnovative,coordinated,green,openandshared鈥漡rowth.Inaddition,with2017beingseenasanimportantyearforthe13thFive-YearPlan(2016-20),deepeningsupply-sidestructuralreformholdsgreatsignificancefortheeconomicworkahead.StabilityfocusInviewofthecurrenteconomicdeceleration,WangYiming,PolicyAdvisorwiththeStateCouncilDevelopmentResearchCenter,believesthatChinashouldmaintainstabilityandcontinuityofitsmacropoliciestostabilizemarketexpectation,whileboostingmarketconfidencebyimplementingmajorreforminitiatives.鈥淲eshouldhaveconfidenceinmaintainingstabilityinsteadoflookingforquicksuccess,鈥漵aidWang.Otherprioritiesalsoincludesupply-sidestructuralreformaimedatcuttingexcessivecapacity,destocking,deleveraging,reducingenterprises鈥檆ostsandshoringuptheeconomy鈥檚weaklinks,aswellasincreasingconsumptionandimprovingtheinvestmentenvironment.Thesupply-sidestructuralreformmadeinitialprogressin2016butitssuccessiscertainlynoeasyfeat.鈥淚ttakestimetofundamentallytransformthegrowthmodelsbyfurtherdeepeningstructuralreformthisyear,鈥漵aidZhangLiqun,ResearcherwithStateCouncilDevelopmentResearchCenter.Wangagreed,sayingthecountrycouldcombinecapacity-cuttingwithreformofstate-ownedenterprises(SOEs).Effortsshouldbemadetodecreaserealestateinventoryinthird-andfourth-tiercities,graduallyphaseoutdeleveraging,lowertransactioncosts,andenhancesupportforgrowthinsoftpower.BoostingtherealeconomyAccordingtotheconference,thecountryshouldalsopushforwardreformsinkeysectors,includingtheSOEs,taxation,financeandsocialsecurity.AnalystsbelievethatChina鈥檚economywillrealizeamoreoptimizedstructureanddivisionoflabor,createnewdrivingforces,anddevelopstrongerresilienceandagreatercapabilitytoresistrisks.鈥淲hileadvancingthereform,wemustclingfirmlytosomemajormarket-orientedreformsthisyear,鈥漵aidPengSen,ChairmanofChinaSocietyofEconomicReform.Pengsaidthecountrymustmakeabreakthroughintheseriesofreformsinkeysectorsforsustainablegrowth,includingdeepeningreformofSOEs,coordinatingcentral-localrelations,andimprovingsocialsecuritysystems.Additionally,therealeconomysectorswillbeboosted.AnalystssaidthatboostingtherealeconomyisanimportantdrivingforceforChina鈥檚transformationandupgradingunderthepressureofaneconomicdownturn.鈥淢anufacturinghasbecomethemain鈥檅attlefield鈥檉orrevivingtherealeconomybybringinginnovationtoitscore,鈥漵aidLiGuangbei,DeputyDirectorofDepartmentofPlanning,MinistryofIndustryandInformationTechnology,addingthatitismoreimportanttoadvancetraditionalindustriesbyinnovation,inadditiontospeedingupthedevelopmentofemergingindustries.Therealestatemarketisstillunderthespotlightin2017.Thegovernmentwillaccelerateestablishingalong-termmechanismfortherealestatemarket鈥檚stableandhealthygrowththatfollowsmarketrulesandisinlinewithnationalconditions.Insidersbelievethatmaintainingstabilityintherealestatemarketwillbethemainpolicyorientationoveralongperiod.Underthelong-termmechanism,governmentdepartmentsandmarketplayerswillbeabletoactivelyandrationallyparticipateinthedevelopmentofrealestate,accordingtoNiPengfei,AssistanttotheDeanoftheNationalAcademyofEconomicStrategy,ChineseAcademyofSocialSciences.LiuHongyu,ProfessoratTsinghuaUniversity,saidtheconferenceindicatesthatforthenextsteps,aseriesofinstitutionalbuildingneedsstrengtheninginsuchaspectsaslandandhousingsupply,realestatetaxation,realestatemarketregulation,andurbanization.
LiCungenAcraneshipisbeingbuiltinNantong,JiangsuProvinceinlinewithsupply-sidereform
AttractingforeigninvestmentDespiteuncertaintyanddownsiderisks,theChineseeconomyended2016onafirmfooting.For2017,analystsexpectthegovernmenttogivehighprioritytopolitical,economicandsocialstability,andmaintainitsgrowthtargetof6.5-7percent,accordingtoShenLan,aneconomistatStandardCharteredChina.Chinawillalsoexpanditsopeningupandacttoattractforeigninvestment,accordingtotheconference.Puttingpriorityonattractingforeigninvestmentsentanactivesignaloffurtheropeningup,saidBaiMing,ResearcherwithChineseAcademyofInternationalTradeandEconomicCooperation,MinistryofCommerce,addingthataseriesofinitiativesthatimproveoptimalallocationofresourcesbyopeningupwillinjectvitalityintoChina鈥檚economicgrowthtoachievemutualbenefitsandwin-winresultswithforeigninvestors.LiuYingkui,DirectoroftheDepartmentofInternationalInvestmentResearch,ChinaCouncilforthePromotionofInternationalTradeAcademy,sharessimilarsentiments.Liusaidthatdevelopedcountriesstillenjoyadvantagesintechnologymanagementinsomeareasofhightechnology,althoughthescaleofChina鈥檚investmentsabroadhasexceededthatofforeigninvestmentinChina.Moreeffortsshouldbemadetolearnfromtheadvancedexperienceofdevelopedcountries,andguidingforeigninvestmentsintohi-techmanufacturingandhighlyvalue-addedservicestohelptransformandupgradeChina鈥檚economy,saidLiu.ThecountrywillalsopushaheadwiththeBeltandRoadInitiativeaimedatboostingtradeandconnectivityacrossAsia,EuropeandAfrica.鈥淚tindicatesChina鈥檚integrationintotheworldatafasterpace,鈥漵aidZhangLiqun.Inspiteofasluggishworldeconomy,theBeltandRoadInitiativenotonlylaysasolidfoundationforgrowthbutpushesforwardtherecoveryoftheglobaleconomy.CA