Clear obstacles to reforms

Updated: 2015-05-11 08:17

(China Daily)

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At a time when China's economy has entered a new normal, reform is the most effective instrument for pushing forward the necessary economic transformation.

From the cancellation of administrative approval procedures to the reform of the corporate registration system, from the lifting of some limitations on private capital entering the banking sector to experimental reforms of State-owned enterprises, and from the effort to reform the fiscal and taxation system to the effort to reform the rural land system, the country has demonstrated its resolve and courage to break through the barriers impeding development

However, some are still lax in their efforts to implement the central government reform measures. For example, some local governments have refused to delegate administrative powers to lower levels or simplify administrative approval procedures, and, as a result, time has been wasted and operational costs increased on the part of companies for no reason. Meanwhile, a lot of barriers to private capital investment are still in place in some sectors despite the demolition order from top decision-makers.

There are a variety of factors behind the various barriers that exist to reforms, from lax supervision and institutional defects to concerns over the risks resulting from the reforms and worries about the possible damage they might do to established interests. This is particularly true to the country's ongoing reforms in the healthcare, energy pricing, and household registration systems. The lack of a sense of duty and responsibility among some local officials has also compromised the country's ongoing efforts to advance reforms.

China's history indicates any reforms aimed at touching the benefits of interest groups will always encounter obstructions. This means that huge courage and resolve are needed to ensure significant reform moves can be implemented in a credible manner to realize their ultimate success.

The above is an abridgement of a People's Daily article published on Friday.