China’s economy ‘is full of hope’, but market reforms key to healthy, sustainable foundations
- China needs better policies to support its ‘vibrant, competitive and creative market entities’, said a former senior official with its top economic planner
Unswerving market-oriented reforms would be key for China’s upcoming third plenum, said a former senior official with Beijing’s top economic planner.
“China’s economic reform has been going on for 45 years, and this year marks the 46th year, and the most important core issue is reconciling the relationship between the government and the market,” said Peng Sen, a former deputy director of the National Development and Reform Commission (NDRC).
“Letting the market play a decisive role in resource allocation, that means minimising government intervention in the micro economy,” Peng said during the World Economic Forum’s Annual Meeting of the New Champions – also known as Summer Davos – on Thursday in Dalian.
The meeting, which will be attended by more than 370 full and alternate members of the new Central Committee, is expected to endorse a wide-ranging communique covering deepening reform and pushing forward China on a path to modernisation.
[The government] is mainly for creating a better environment for competition
Peng, who is currently president of China Society of Economic Reform, an academic association affiliated with the NDRC, added that the government should not play such a large role in its socialist market economy.
