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Opinion / Op-Ed Contributors

For global growth all countries need structural reforms

By Zhu Qiwen (China Daily) Updated: 2015-08-08 07:37

China's economic slowdown is indeed broad and deep after several years of gradual deceleration. After last year's 7.4 percent growth, the weakest since 1990, the Chinese economy has slowed further this year, growing by 7 percent in the first half.

On Monday, a Caixin report said China's manufacturing activity fell to a two-year low in July, sparking fears that this could be a sign of a sharper downturn. The pressure on the Chinese economy is obvious. So is the resolution of Chinese policymakers who are fighting economic slowdown with both emergency measures and long-term reforms.

On Tuesday, the National Development and Reform Commission, China's top economic planning body, issued an action plan to improve the core competence of six manufacturing sectors from 2015 to 2017, by attracting private investments, increasing financial support and encouraging acquisitions and mergers of foreign high-tech manufacturing enterprises.

Since manufacturing output accounted for more than one-third of China's $10-trillion GDP, there is little doubt that the NDRC move will expedite the country's economic growth.

On Wednesday, Bloomberg News reported that China is aiming to issue 1 trillion yuan ($164 billion) worth of bonds to fund construction projects in order to help boost the slowing economy. If that is true, Chinese policymakers are doing what is necessary to keep the economy on track.

Besides, some recent reports have said Chinese authorities are deliberating on the 13th Five-Year Plan (2016-20) that would address the short-term downward pressure and facilitate sustainable development in the middle and long term.

Clearly, China is doing its bit to boost growth through structural reforms. Other countries can benefit a lot from China's success in leading its economy toward innovation and consumption-led growth. But for the successful transformation of the economic development model, policymakers should aggressively change the economic structure to preempt another global financial crisis and seize the opportunity to facilitate another round of high global growth.

The author is a senior writer with China Daily. zhuqiwen@chinadaily.com.cn

(China Daily 08/08/2015 page5)

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