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China to deepen reforms to spur growth

( Xinhua ) Updated: 2013-11-07 17:06:15

BEIJING - The upcoming policy meeting of the Communist Party of China (CPC) is expected to unveil a package of measures to deepen reforms to achieve sustainable economic development, said experts.

The reforms are "essential for China as it tries to find a sustainable growth model over the medium and long term," said the Wall Street Journal in an article.

The Third Plenary Session of the 18th CPC Central Committee, which is expected to steer the country to an historic turning point, will kick off at this weekend.

Thanks to three-decade reform and opening up, China has become the second largest economy in the world with an annual growth rate of nearly 10 percent and an approximate $6,000 GDP per capita.

However, China's economic growth has experienced a sequential slowdown since 2011, with a growth target of 7.5 percent in 2013.

China is facing comprehensive problems such as production overcapacity, local debts and shadow banks. Population aging and an enlarging wealth gap also piles pressure on the old growth model.

China's economic development has entered a stage where only reforms can unleash growth potential and reduce risks, said a research report from Britain's Barclays Bank.

Experts anticipate that the new reforms will focus on urbanization -- a critical driving force for China's long-term economic growth.

The director of the Asia Research Center of the London School of Economics, Athar Hussain, said China has made great changes in the past few years, noting that urbanization, which requires both economic and political reform, will become the most important issue for the Chinese government in the next five years.

Hussain also forecasted that more city clusters, such as the Chengdu-Chongqing cluster in the central and western areas, will be created to reduce the stress on the four megacities of Beijing, Shanghai, Guangzhou and Shenzhen.

Expert said a scientific and effective transformation to urbanization will stimulate domestic demand, balance investment and consumption, and inject new impetus to the economic growth.

As a driving force of economic growth and rebalance, the Wall Street Journal said urbanization will be supported at the Third Plenary Session of the 18th CPC Central Committee on November 9-12.

Experts also pointed out that the policy of focusing on the dominant role of people is very important, which will increase the autonomy and sustainability of China's urbanization progress.

History shows that land and agriculture is deeply related to the fate of Chinese people. The old urban-rural dual structure is expected to be reshaped following reforms in such fields as the land system, the social security system, modern agriculture and law.

The Third Plenary Session of the 18th CPC Central Committee is an opportunity for China's new leadership to show their wisdom by coping with those challenges, said Anoop Singh, director of the Asia and Pacific Department of the International Monetary Fund (IMF) in an article published on IMF's website.

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